In my research into Tally Ho, I came across a blog post in which they take about their plans to do an initial token distribution using a merkledrop. And I just did some quick googling to find out what it was, and it appeared to basically be an airdrop. So I went on and typed up my post. But I had this nagging feeling in the back of my head, as I often have. And when Neo77 asked me to explain it. That was the trigger point for me. I had to know more about this thing. So thank you Neo77, I owe this post to you. =)
As I looked into this I have decided to go the analogy route with my explanation. Mostly because my technical skill is lacking. So I need to try and play to my strengths instead. Hopefully, this will still be comprehensible and presumably easier to follow than going into the technicality of it all. But fair warning, I might miss some things or oversimplify things.
Airdrop vs Merkledrop
In my analogy example, we are all living in the bustling town of Cryptovill.
The traditional Airdrop, even if it has evolved some from its initial form. If we look back at it it is very much a brute force method. To use an analogy. it works in a similar way to loading an airplane full of the crypto you want to airdrop. And then literally just dropping them from the air over Cryptovill.
Sure every one that is out and about that day will be able to get the new crypto. But a lot of it will be stuck in gutters or on roofs and will have to be cleaned up. This is one of the flaws of a traditional airdrop. The crypto in the gutters and on the roofs are crypto in people's wallets that either does not care about it, or it might even be inactive or forgotten wallets.
You really have no control over who gets it, you just know that every one that is in Cryptovill that is out and about that day will be able to get some. You then hope that the people who picked it up will start using it.
If we now move on to a Merkledrop and apply the same type of analogy to it. This is similar to if you instead of filling an airplane full and dropping it all. We instead hire one of those awesome sign spinners. And if you have no idea what I am talking about. I have included a video for you.
On this sign, we then put a promo code. And this promo code can then be put into any of the ATMs in Cryptovill. Allowing people to withdraw the new crypto and put it directly into their wallet.
Advantages and disadvantages
As I see it the main advantage of going with a Merkledrop is that the users actively have to "request" the currency. Meaning they presumably will be actively participating in the community and using it moving forward.
As a token provider, you also end up "wasting" much less of the crypto. Meaning that the crypto you do distribute will presumably be put to much better use.
A Merkledrop is also much cheaper to do for the token provider. I am referring to no gas fees.
The disadvantages, what about them?
As a user, it does require me to actively "ask" for the token. And this means that because it is I who ask for the token, it is I who initiates the transaction. So I have to pay the gas fee. Presumably, the tokens you get will hopefully, at least given time, compensate you for the gas fee.
If I then take these things into account I think it is an excellent choice for Tally Ho. As I think the advantages of a Merkledrop far outweigh the disadvantages. I think this choice vastly increases the project's chance of success. And it allows for what in my eyes is a much better use of precious resources.
I have also provided a link to a much more thorough explanation of what a Merkledrop is. The link is found below.
What is your thought on the differences between an Airdrop and a Memrkledrop, do you Tally Ho is making the correct choice in going with a Merkledrop instead of a traditional Airdrop? Please share your thoughts on these topics in the comment section down below.
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