0

ELI5 – BitShares Sharedrop

There’s a great Explain Like I’m Five Thread on BitSharestalk read below in case you missed it

Q: What is a Sharedrop

Q: Is it legal to Sharedrop

A: How legal is it to mail $20 bills to addresses in a mailing list you bought that represents some demographic?

Q: What incentives does a business have to do so (financially, in any other fashion)

Q: What is expected from a business doing a Sharedrop

A: As you can see from recent Identabit sharedrop posts, (and every other one of about 6 sharedrops that have occurred in the past or near future), everybody has different expectations. In general, those expectations are whatever benefits them the most and people will argue passionately about why any other distribution than what benefits them is unfair, immoral, communist, socialist, capitalist, chartreuse microbus driving long-haired Friends of Jesus, criminal illuminati bankster red-necked inside trader greed!
Ignore that.

Fact is, its all about collective bargaining, but in the end, if someone gets a decent amount of your coin (and it vests over time so they can’t dump it at the worst possible time during a temporary downturn in the market) then they will naturally pay attention to everything you do. Essentially, you are buying eyeballs. No different, really, than a mined coin that buys the eyeballs of crypto-geeks who know how to mine. Only in this case, you are buying the eyeballs of a different demographic – owners of the asset you are sharedropping on. So if you sharedrop on Permacoin, you are going to be attracting the interest of people who care about permaculture. Likewise for Marscoin. But if you sharedrop on BitShares, you gain the interest of people who understand industrial strength block chains (and sharedrop theory) and won’t settle for anything less.

Q: Use cases of businesses that do sharedrops / have done it succesfully here so far
A: Successful sharedrops include (at the time of the sharedrop), BitShares X, BitShares DNS, BitShares VOTE, BitShares PLAY, BitShares MUSIC, Identabit, a few fizzles, and at least one more coming later this year. Each got instant community attention.
You could also sharedrop on dog lovers, but Dogecoin owners don’t know what sharedropping is and don’t appreciate industrial strength third generation blockchain technology, so your shares might get dumped like pearls before swine, er, dawgs.
Bottom line, before BitShares, the conventional wisdom was that to get a fair distribution you had to have a “fair” mining lottery which gave away almost all of your precious sweat equity to what turned out to be a few big mining pools and farms. They wasted most of the value selling those coins (depressing the price) to make money to pay for electricity instead of paying for development and marketing.Madness!

After BitShares, the Smart Developers (all who now work for cryptonomex.com) realized that rather than dropping their shares onto fickle and ruthless Big Mining, why not drop them onto one of over 600 demographics represented by owners of the assets listed on coinmarketcap? Roll your own initial distribution! Screw Big Mining!

Now, do you want mars colonizers OR people who know the potential of Decentralize Autonomous Companies, understand sharedrops, and (a) bitshareholders who have held on through the Great Bitcoin Depression OR (b) brownieholders who have contributed their time and talents to growing the DAC industry ecosystem?

Source:
Answers – Stan/bitsharestalk