The Edgeware lockdrop was a token distribution event that occured between June 1-Aug 30 2019. It is now closed. Please visit our blog for more information.
The Edgeware network was launched with a ’lockdrop’ of Edgeware tokens to Ether holders.
A Lockdrop is an airdrop where token holders of one network lock 5 their tokens in a smart contract for a fixed or variable time period, the ’lock duration.’ The purpose of this novel method of token distribution is to more fairly, securely and widely align incentives among the active participants, select for and incentivize committed initial participants of the network, and leverage existing token distributions in order to create relatively more diverse and wide distributions.
In the case of Edgeware, Ether holders will be able to participate through two interaction types: a ’Lock’ where they send and make inaccessible their ETH tokens for an elected duration of 3, 6 or 12 months, or to ’Signal’ their intent to participate in the Edgeware network.’Signaling,’ is similar to an airdrop in that no lock duration is imposed and the participant’s tokens remain accessible however Signal participants receive a reduced allocation compared to a Lock interaction.
For those that choose to Lock their tokens, longer lock duration corresponds to proportionally more Edgeware tokens received, and these are distributed at the launch of the network. The Lockdrop process is a more fair and secure way to distribute tokens in a Proof-of-Stake network for the following reasons:
To participate in the lockdrop, individuals are forgoing the opportunity cost of ETH for the duration of the lockdrop–e.g. being able to lend on Compound. For long-term ETH holders, this opportunity cost is irrelevant. For this reason, long-term ETH holders are most aligned with the EDG lockdrop. The minting of EDG tokens will allow token holders to participate in all the rights allocated to Edgeware participants–becoming a validator or voting on network proposals.
At the end of the lockdrop, participants will have access to two productive utility tokens, ETH and EDG respectively. As Edgeware is a new and experimental chain, in the event of a malicious attack or exploit on the Edgeware network, lockdrop participants will still retain their ETH, eliminating the long-term risk of participation.
A single transaction that sends ETH to the Edgeware Master Lockdrop Contract allows one to receive EDG tokens. Any account can perform this from a hardware or software wallet (e.g., Trezor, Metamask, and more). Moreover, any ETH holder can participate.
Bootstrapping security on a new PoS chain. Ethereum is bootstrapping the Serenity release from an initial crowd-sale and PoW block reward. In the same way, Edgeware can use the already-wide distribution of Ethereum holders to bootstrap the economic security of the Edgeware chain.
When calling lock from the Master Lockdrop Contract, an individual Lockdrop User Contract is created, which actually holds the time-locked ETH of a participant. This significantly improves fund security, because value is not stored