Vitalik Buterin Proposes Solution to Airdrop Challenges

Identity solutions could rectify the shortcomings of airdrops, according to Ethereum co-founder Vitalik Buterin.

Airdrops are a fascinating initial use case for ZK / blockchain-based identity / credential / attestation frameworks. The goals of an airdrop are:

(i) distribute to community members [and not randos who will all immediately sell]
(ii) reward contributions to the project
(iii) be…

— vitalik.eth (@VitalikButerin) August 28, 2024

“Airdrops are an interesting initial use case for ZK, blockchain-based identity/credential/attestation systems,” he wrote.

Buterin referred to zero-knowledge proof technology, which allows the use of cryptographic proofs to enhance privacy.

The Ethereum co-founder noted that the aim of an airdrop is to distribute tokens to genuine community members rather than farmers, reward contributions to the project, and be sufficiently egalitarian.

“These are precisely the properties that identity/credential/attestation systems aim to achieve. For those creating them, it makes sense to use token issuance as an initial use case for beta testing and refinement in competitive conditions,” he explained.

In response to a question about the biggest obstacles to such an approach, Buterin stated that it is a multifaceted entity that will evolve over time.

“It is a complex problem. […] The developed solution can naturally be exported to better reward all kinds of currently uncompensated labor in the economy on a human scale,” he suggested.

The Ethereum co-founder also noted that tokens need not be distributed for free; discounted sales are also possible. For instance, a community member’s contribution to the project could serve as a starting point for determining the amount they can purchase at a discount.

Earlier, the ZKsync airdrop faced criticism for allowing only 13% of 6 million unique wallets, many of which turned out to be “sybils.”

In May, over 100,000 “sybil” addresses voluntarily came forward as part of an initiative to combat airdrop hunters who create multiple accounts to increase their share of LayerZero token distribution.