Lock Up Ether, Get Free Crypto: Twist on Airdrops Attracts Top VCs

A startup offering a new twist on token airdrops has raised $2 million from a group of notable investors, CoinDesk has learned.

Commonwealth's new distribution approach, called a "Lockdrop," looks to maintain the high levels of interest that airdrops inspire, while adding a hurdle meant to attract the right investors.

To attain that influx of community interest, but dissuade those that just want crypto candy, Commonwealth came up with a new spin on the airdrop called a "Lockdrop" for its EDG token, a governance and utility token for its first product, Edgeware.

The genesis block of Edgeware will create 5 billion EDG tokens, 90 percent of which will be distributed to participants in the lockdrop.

"Since you get your ETH back at the end of your lock-up, you can obtain EDG and experiment in this new community without sacrificing your plans for your Ether."

Users have four options: they can lock up for three months, six months or a year.

Signaling the smart contract only earns 0.6 shares and there's a delay - the signal option won't be paid out for a year after network launch, whereas all those who actually locked will get EDG as soon as Edgeware goes live.

It's impossible to know at this point how many people will participate and how many will join at which level, but the point here is to give interested ETH holders a hurdle to their free tokens - but not too much of a hurdle.

Chen tells us that the blockchain should go live right after the contract closes, meaning that those in the lockdrop won't need to wait to claim their new tokens.

Following launch, Commonwealth looks forward to several new projects built around Edgeware, including creating an encrypted email platform that sends between various blockchain addresses, an anonymous voting system, becoming a Polkadot parachain and facilitating decentralized autonomous organizations.