Decentralized exchange project Bancor (BNT) is currently in the midst of launching a massive airdrop to all its token holders. Cointelegraph took the occasion to interview Co-founder and Product Architect Eyal Hertzog, and Head of Growth Nate Hindman. The duo shared their thoughts on the airdrop, existing trends in decentralized finance (DeFi) and Bancor’s upcoming transition to a Decentralized Autonomous Organization (DAO).
Engaging the community through an airdrop
In November, Bancor announced an airdrop of ETHBNT to all those who held its BNT token as of Jan. 1. The airdrop gives the equivalent value of 10 percent of the wallet’s BNT balance as ETHBNT, a “pool token.”
These tokens are a key feature of the Bancor exchange. Unlike normal order book-based platforms, Bancor relies on an algorithm that automatically calculates price based on the difference in buying and selling pressure. Liquidity pools made of tokens like ETHBNT are a key component of this system. Users can acquire pool tokens and stake them in the liquidity pool, receiving a portion of the exchange fees. Then, at any moment, they can be exchanged for either ETH (and other coins) or BNT.
The token will be distributed to all non-custodial wallets and supporting exchanges, a list that currently includes Binance and, as of Jan. 16, Poloniex.
Bancor maintains that the airdrop will increase the number of users in DeFi six-fold by adding 60,000 new people into the ecosystem. However, airdrop participants are naturally inclined to take them as “free money,” selling the tokens at the first opportunity and never really joining the community. Read More...