Community Distribution Model

Definition ∞ A community distribution model defines how tokens or resources within a decentralized project are allocated to its participants. This framework specifies the methods and criteria for distributing digital assets to users, contributors, or stakeholders within a blockchain ecosystem. It often prioritizes fairness, decentralization, and incentivization to foster active participation and governance. Such models can include airdrops, yield farming rewards, or grants, aiming to decentralize ownership and control.
Context ∞ The design of a community distribution model is central to a decentralized project’s long-term viability and equitable governance. Debates frequently concern the balance between initial capital formation and broad, decentralized token ownership, impacting the project’s resistance to centralization. Effective models seek to align incentives among all participants, promoting sustainable growth and robust network security. News often reports on new distribution strategies or the outcomes of existing ones.