Clear DefinitionsCommunity Allocation
1 min read
Pronunciation
[kuh-myoo-ni-tee al-uh-kay-shun]
Analogy
Community allocation is like giving away free samples to potential customers to build brand loyalty.
Definition
Key Points Intro
Community allocations foster engagement by:
Key Points
Incentive programs: Airdrops, bounties, and liquidity mining rewards.
Governance grants: Funding contributors to proposals or development.
Ecosystem growth: Supports third‑party integrations and partnerships.
Vesting/cliffs: May include schedules to ensure long‑term participation.
Example
A protocol reserves 20% of its tokens for community grants, distributed over 2 years to developers, educators, and active users.
Technical Deep Dive
Grant contracts use Merkle trees to manage airdrop claims: off‑chain list of recipients hashed into a Merkle root on‑chain; users call `claim(index, amount, proof)` to receive tokens. DAO voting contracts allocate community treasury via on‑chain proposals.
Security Warning
Airdrop bots can capture allocations; use snapshot gating (e.g., minimum activity) to target genuine users.
Caveat
Large community pools risk dilution if not paired with real utility demand.
Community Allocation - Related Articles
No related articles for this term.