Say SmartDrops Hello: The New Way To Get Free Crypt

Are airdrops worthwhile?

Although the jury is still unaware of the process, which was late used to disperse crypto tokens massively to those who own cryptocurrencies, many business analysts and start-ups already feel this could be better done.

After a July midday article by Yeoman's Capital founder and long-term shareholder, David Johnston, the idea of smart falls appears to have gained some attention. In it, Johnston urged blockchain companies to resist a standard approach to airdrops, which would be a more oriented approach to dumping tokens to every user with an etheric address.

Johnston told CoinDesk that in practical terms it means to "take a smart approach to the recipients of an airplane and offer a substantial amount of value," in order to attract real users to engage "in the early bootstrapping of a program."

For example, this method already takes precedence. Nevertheless, in his medium article, Johnston says that he has only reported good practices and gave "substance of this concept that many people have," in general, referring to the Dfinity and Polymath projects as examples of smarts.

Sure, Dfinity revealed in June its intention to assign a third-party cost of $35,000 million to members of the community who experience (and pass on) the verification process of the know-how-your-customer and anti-money laundering (AML).

Likewise, new companies have emerged to facilitate these improved airdrops. Crypto token management company TRM Labs, for example, recently launched a platform (dubbed SmartDrops of course) that allows projects to distribute tokens to select users and offers issuers analytics.

Just like Johnston, it appears many crypto stakeholders have high hopes for the new and improved airdrop and think the method could resolve issues associated with other token distribution methods, namely initial coin offerings (ICOs) that have been under regulatory scrutiny and seen industry criticism since its explosion in use.

These ventures also find it difficult to draw "bootstrappers," to whom Johnston refers and their tokens often become more speculative than utilitarian items.

"The biggest number of airdrops is to send speculative investors a token so that they can exchange money. It's really about trying to show that we have loads of wallets, we can bring a lot of people to you and so let's mention our token on the exchange, "Paul Hainsworth, Chief Executive Officer, Open Garden, told CoinDesk, who's going to use the Smartdrop system to distribute his OG tokens early.

Hainsworth continued:' We do not feel that is a viable way to actually construct a real network.' Summarizing most viewers ' thoughts about the counterintuition of these decisions would make ICOs not really redundant, as the main method of tokens distribution. Smart drops are the focus of group acceptance.

"I certainly can see a place for token sales, but it feels like you have a real software program after building a community," said Johnston.

That's because Johnston continued that technology projects were essentially designed to build user communities.

"First because people fall victim to their own success, it is important to have community and true technology," he said, adding: "If they have a bunch of money, then they lose the discipline of execution. It was not important to raise money; raise money was only a way to provide the technology. "This was clearly known to Open Garden's Hainsworth.

Thus the Open Garden project is "an inverted strategy" sponsored by Future and PERFECT Ventures. "We release the service, take the airdrop and give people tokens so they can start to use it in the network and demonstrate their capabilities, and then we distribute our tokens to stakeholders once we have enough utility in a network," Hainsworth said to Coin Desk. "We will be able to use it.

The airdrop will also coincide with the introduction of Hainsworth's "construction and preparation to pass" live protocol or mainnet.

Open Garden distributes 1 billion tokens to encourage people to use its peer-to-peer internet sharing and retail network. Through means of mesh networking the protocol that is built on the blockchain stellar enables people, all within a mobile application (currently for Android) to sell and to afford Internet connectivity with a native token.

Open Garden is currently running the FireChat messenger app with 5 million subscribers, which is the segment it is beginning to airdrop.

Above all, though, the group has developed a kind of security to ensure that OG is used for dealing with the network rather than for speculation.

The token earning community members will not be able to cash out immediately. We should first use the token for the "target"-things like converting their devices into hotspots, transacting and having the app more than a month installed.

Yet it is not enough just to provide "right" users with tokens.

The number of tokens to be issued and the value of the tokens must be a major decision-making task. As CoinDesk reported earlier, fudging numbers can jeopardize investor confidence and can even stop the token demand from reaching supply in the venture.

According to Johnston, ventures must concentrate on the proportion of tokens they plan to deliver and it ought to be "go big or go home."

"Today's people take 1% of the tokens and it doesn't really matter," he said. "Something more drastic you have to do, I guess. He adds: "If the Group is of the majority interest, the rest of the bonus should be paid for." Think of 25% of the tokens or about 50% of the tokens or 60% of the tokens that are sent out to the Community so that the creators are minorities... but they do not control the group.

Open Garden planned to give just under 5 percent of its total tokens in a two-phase distribution (what Hainsworth estimates would be hundreds of dollars per participant). And while it wasn't in the two digits, as Johnston suggested, he told CoinDesk that it was an adequate amount for a mature project with a large user base already.

Hainsworth told CoinDesk that the percentage of tokens that the project agreed to spread was intended to allow network spread and liquidation because the distribution of Internet connectivity involves many micro-transactions.

More flawed research is to determine the price of tokens.

Open Garden also decided to release its $0.01 token, which Hainsworth explained was related to the value of its initial tokens from the last round of private pre-sale.

In the future, Johnston expects that the recently launched distributed predictive platform, Augur, will also provide other means of determining token prices.

But it's up to the companies to determine the right price up to then.

"Our goal is to build real value by the end of the year and become the first and most important consumer use of blockchain technology," Hainsworth said with excitement and adding: "It's actually how real companies operate."