An update about future distribution plans.
So far, bytes were mainly distributed via airdrops to holders of BTC and Bytes, and a relatively small portion was distributed through the cashback program. We started this free distribution with the purpose of getting the currency as wide spread as possible, and while the purpose stays the same, methods can change. The airdrop method worked well to get the initial user base, but it also proved to be the least efficient in terms of user acquisition cost.
Over the next few months, we'll add more methods of free distribution. One of them is already being developed, I expect it to be ready in the first half of December.
The new methods are designed to grow our user base faster than the money supply.
While the new methods are still untested, it is early to drop the airdrops. That's why the next round of distribution to Bytes and BTC holders is tentatively planned for the full moon of March 2, 2018. The rules are the same as in the previous round:
For every 16 BTC you receive 0.1 GB,
For every 1 GB you receive additional 0.1 GB,
and similar rules for blackbytes.
This round can be postponed or even canceled depending on performance of other distribution methods.
As I said before, airdrops to holders of BTC and Bytes, which we did on full moons, were a good way to bootstrap the network and get initial attention. But last few airdrops failed to attract any significant number of new users while quickly consuming the undistributed pool. We had to pivot to other distribution methods, but at the time I was writing the above post they were not ready yet, and I had to tentatively put another old-style airdrop on the calendar.
Now that the new distribution methods are ready and proven, and we've added even more methods than originally planned, the March airdrop is cancelled. November airdrop was the last one that paid to holders in proportion to their balances.
This is the list of the current distribution methods (in no particular order) that we'll continue to use and improve:
1. Cashback.
2. Verification rewards and referral rewards to those who verify their real name. It is true that the referral system didn't work quite well for new users who have no Bytes yet, and we are going to introduce a new scheme which will allow to refer new users without sending them any Bytes.
3. Giveaways, such as those that Rafael does to his youtube subscribers.
4. Mass sending of textcoins to subscribers of our partners. We have done two so far
https://docs.google.com/spreadsheets/d/1heT6TUSpTJgRW-FUM0LbcoVjXZRCb3PbXQQLmzvNRvM/edit#gid=323859176 and will work on improving conversion in the future campaigns.
Other similar methods will be added over time, the purpose is to use the remaining undistributed coins most efficiently to acquire as many new users as possible.
There were multiple suggestions to redirect a part of undistributed funds from free distribution, i.e. from acquiring users, and spend it for hiring more people, paying contractors, etc. While I understand the reasoning behind these suggestions, it is also important that we learn to spend money wisely, with the maximum effect per spent $, before (and if) we scale up the budget. Anyway, it is unnecessary to repurpose the undistributed funds now as we have enough funds in the Community Fund to fund the current operations in the near future: it is over $1m in Bytes (plus another $1m in less liquid blackbytes).
Womp Womp Womppp.... March (After Airdrop) was when I was going to start messing around with this project and really look into it. Unfortunate decision I think. Goodluck to the project, however.
