Taking Care of the Token Distribution Issue: SalesForce in Blockchain
At this point when blockchain startups have many opportunities to grow with many investors ready to help them in their journey worldwide, important thing is to understand that the right start is a key to building a multimillion platform with tons of users.
Remembering from what it all started, distribution has been an initial token problem. Ethereum goes live in 2015, making it super easy for anyone to launch a new token. What happens? An ICO explosion. Developers co-opt ICO’s as a way to raise money fast. Most specifically, according to 2017 statistics, 525 token projects raised 6.5 billion dollars through ICO’s. That’s equal to 3 percent of the amount raised through IPO’s. At that point everyone thought that ICO’s are the best way to ensure the project’s growth. It was that exact time that AirDrops were introduced. In 2017 a blockchain startup called OmiseGo launched one of the first token `airdrops`, or free token giveaway. Specialists in OmiseGo were sure that not everyone has time, skills and opportunity to buy tokens during token sale and they just gave away the tokens to get the wanted distribution. Many organizations have copied the structure that they have used, but the thing is that it does not really work. The majority of people who receive free tokens view them as spam. There are some people who spend hours tracking and signing up for airdrops. But they don’t anticipate on utilizing the tokens. Their ambition is just to become rich if the tokens become higher in esteem.
Another crucial component of token distribution process is the network impact happening when the product or service becomes more valuable as more individuals start using it. Usage, not growth in vanity measurements like number of token holders, is what leads to network effects. Speculative investors do not contribute to a network effect when they simply hold a project’s token. In fact, they might have a negative impact on network effect since they are holding a scarce resource that could otherwise be held by actual users. So ICO’s theoretically solve the problem, but they do not hit it in practice.
But wait there is still a solution: introducing a startup SmartDrop. Imagine getting 10 tokens when you download an app, then 5 tokens for adding an email, adding information to your profile and 10 tokens every time you refer a friend. That is how SmartDrop works: the distribution of cryptocurrencies (coins/tokens) based on completed user milestones.
Unlike ICO’s and airdrops where incentives are front-loaded around launch, SmartDrop enables projects to align incentives around usage and thus drive network effects.
Along with the idea for solving the token distribution problem, the founders of the SmartDrop introduced a new platform TRM (token relationship management).
`This is a platform that gives you all the tools you need to measure, manage and grow your decentralized community all in one place. `
Here are some of the key features of token relationship management:
- personalized dashboard to measure KPIs across your token economy and community,
- measure your growth within certain time by capturing user milestones and rewarding users with tokens at every step of their journey,
TRM helps crypto networks understand their key metrics, communicate with their stakeholders, and align incentives through event based rewards.
Summing up what we have in this yet young platform, one thing becomes clear, i.e. technology is the most powerful tool for social impact.
Many blockchain companies, do not realize the importance of TRM, maybe because most of them are comparatively young, however the most exciting thing about TRM is that innovations like blockchain and tokenization are becoming more accessible, which on its hand will eventually foster the next generation of technology companies to build a future that is more equal, fair, and free. Nevertheless, it is important to remember that the real growth of the company is conditioned by fact that that the data at the starting point is analyzed correctly.