There are many ways tokens can get distributed and I made this post writing my observations of the way they have been done.
Token distribution is how the tokens will be go to its initial users aka the ones who knew about it first.
The most basic is POW. POC also works but hardly any coins uses that so...
In POW you mine and earn the coins. No need to verify in order to earn the coins you just have to work
POS is not a good distribution method,the coins will have to be pre-mined.
POW is often used in POS coins to distribute coins in the beginning or have it in the form of hybrid algorithm.
However with the introduction of new people wanting, dev figured out some alt to distribute the coins.
- Aidrop
This is where you fill out a form and boom get free coins. This is a distribution method but often times can be easily abused.
So many new airdrops pig back on already established coins.
Exp, Eos,Neo, Eth, and Btc airdrops.
In a way you argue the new HF are basically airdrops.
- ICO
This method involves a buyer buying the coins early on.
In Eos, this i done by sets. An auction time style bid where the amount you bid=the % you get
Other type of ico were you buy early and get a extra bonus seem scammy but in a way kind like forced halving where once the amount of coins sold you have to buy the coins earlier.
I still like Eos ico style the best :)
Another type of ico is:
Proof of Burn:
It works like Eos styled ico but they burns the coins. Counterparty did this.
- Captcha distribution
Basically what I call proof of captcha.
Raiblocks now nano did this.
They had this faucet where you could claim raiblocks which would then=the real raiblock token.
I knew about this but the faucet was so buggy thought it was a dead project-I was wrong :(
So do you know any other token distribution systems?
Image source:
https://www.a2-u.com/distribution/
This post was reposted from @sames with full premission!
https://hive.blog/bitcoin/@sames/the-different-types-of-token-distribution#@sames/qbxn8s
