Vitalik Buterin advocates Airdrops as a testbed for Blockchain identity frameworks

Cryptocurrency projects largely focus on incentivizing to generate interest in their brand and products. Airdrops serve as a dual-purpose strategy, both introducing users to the project and rewarding them, effectively functioning as a combined marketing and reward system.

There have been quite a few airdrops this year. Ethereum co-founder Vitalik Buterin highlighted the potential of airdrops as an initial use case for zero-knowledge (ZK) and blockchain-based identity, credential and certification frameworks.

Buterin appeared at X on August 28, where he outlined the core goals of airdrops, stressing the importance of targeting community members, rewarding contributions, and maintaining a balance between equal distribution and resistance to farming tactics.

Buterin argued that these goals align closely with the properties that identity and credential frameworks seek to achieve. He suggests that using token issuance for air releases represents an ideal opportunity to beta test and refine these frameworks in a challenging environment, as detailed in his recent post on the principles of “plurality” .

Buterin went on to expand on the idea that giving away chips for free isn’t the only effective approach. He suggests that discounted sales, where the reduced level is based on the degree of membership or contribution that can be demonstrated, could be an equally viable method.

This approach not only helps distribute the token supply more widely, but also rewards non-financial contributors while ensuring participants have “skin in the game”. Buterin also noted that the techniques used for airdrops can be applied to these cuts.

He referred to a related concept proposed by CT and Idena Network, which involves subsidizing savings rates for smaller accounts as an alternative to Universal Basic Income (UBI), drawing parallels with the Central Fund system of Forecast (CPF) of Singapore implementing a similar strategy.

SPECIAL OFFER (Sponsored) Binance Free $600 (Exclusive to CryptoPotato): Use this link to register a new account and receive an exclusive welcome offer of $600 to Binance (full details).

2024 LIMITED OFFER on BYDFi Exchange – Up to $2888 Welcome Reward, Use this link to register and open a 100 USDT-M position for free!