Vitalik Buterin raises questions over the current token airdrop rules
Vitalik Buterin criticised the current crypto token airdrop rules and said that we should not distribute tokens to those who are ready to sell immediately.
Vitalik Buterin is a prominent crypto entrepreneur, known primarily as a co-founder of the Ethereum blockchain network. Before Ethereum, he was involved in other crypto projects, such as the crypto media website BITCOIN Magazine.
On August 28, 2024, Vitalik Buterin discussed the current crypto-airdrop token system and noted that crypto projects distribute tokens among random crypto traders and participants, who usually sell their tokens in the market.
According to Vitalik, token distribution should focus on those who use or test the tokens for which they were developed, rather than selling them.
Furthermore, Vitalik suggests that instead of just giving tokens away for free, projects can also offer discounted token sales. This approach allows people who prove a certain level of membership or contribution to buy tokens at a reduced price, promoting a more distributed supply and rewarding non-financial contributors. It ensures that buyers still have a stake in the project. He mentions that methods used for airdrops can also apply to these discounts.
Additionally, Vitalik notes that subsidising savings rates for smaller accounts could be an alternative to Universal Basic Income (UBI), similar to Singapore’s CPF system.
A crypto X user commented that airdrops today often create hype, attract users and farmers, distribute a large portion to the team and insiders, and give only a small amount to the community. Vitalik Buterin acknowledged this as a harsh reality but suggested that the use of identity, credential, and attestation solutions, which have been developed over the past five years, could lead to fairer and more effective token distributions.
