Airdrops are a unique competitive business tool in today’s new digital economy. Republic Crypto in its latest report describes an airdrop as the giving away of a digital asset free of a monetary exchange. The first compliant and inclusive blockchain financing and investment platform describes that airdrop tokens can increase awareness and public exposure of a tokenized product or network, decentralizing networks and boostrapping new networks or communities.
Effective for Decentralization
The report states that airdrops can be effective for decentralizing ownership of a network. It agrees that there is no consensus as to what ‘decentralization’ is and at what threshold a network is considered decentralized. “Widely dispersing an asset in an airdrop can be a good way of facilitating ‘decentralization of ownership’.” And through an airdrop, decentralized ownership can help achieve more equitable distribution of wealth. A good example of decentralized ownership and organization is the internet which is just built on a hyperlink that connects all websites and networks. “Decentralization also diversifies user bases, allowing a network to avoid relying too heavily on any one group of users, example, the security laws in the US continue to limit who can male most early stage investments to those considered accredited investors,” says the report. The crypto industry was until only recently dominated by a small group of early adopters. The report explains that airdropping tokens to numerous owners can help decentralize ownership, while significant ownership of digital assets require more than possession of a nominal amount. Meaningful ownership of a digital asset requires awareness of ownership of the asset, appreciation of the use or value of the asset, reasonable accessibility to the asset and the ability to derive meaningful usage or minimal value from the portion owned. The report says “the most successful airdrops aiming to decentralize ownership will build in mechanisms to ensure that recipients are ‘owners’ and users in the practical sense.”