# Distribution

Token distribution defines the owners of a specific network. Distribution options vary widely and continue to evolve with advancements in the technology.

## Classic Methods

{% tabs %}
{% tab title="Pre-mine" %}
A pre-mine indicates the portion of the token economy minted upon launch of the network. This allocation typically goes toward investors of an ICO as well as founding team members.
{% endtab %}

{% tab title="Airdrop" %}
An airdrop describes a network that decides to send tokens to a list of addresses. This tactic may be used in retroactive distribution, social distribution, or pre-mining schemes.
{% endtab %}

{% tab title="Block Rewards" %}
A system of distribution that rewards network participants for helping support the underlying consensus algorithm.&#x20;
{% endtab %}
{% endtabs %}

## Emergent Methods

{% tabs %}
{% tab title="Retroactive Distribution" %}
The retroactive distribution rewards a userbase or following of a certain application, artist, or community by giving network tokens to those who have supported the application, artist, or community in the past.

This model was first pioneered by [Rarible](https://rarible.com/) and then [Uniswap](https://uniswap.org/). Recently artists like [RAC](https://defirate.com/rac-zora/) have begun distributing tokens to fans.

## Examples

{% embed url="<https://uniswap.org/blog/uni/>" %}

{% embed url="<https://defirate.com/rac-zora/>" %}

{% embed url="<https://rarible.medium.com/rari-airdrop-to-nft-holders-everything-you-need-to-know-7e06072fac97>" %}
{% endtab %}

{% tab title="Liquidity Mining" %}
Liquidity mining became particularly popular in 2020. The technique pioneered buy Andrej Cronje at Yearn.Finance rewards participants who stake tokens to support a specific decentralized marketplace. In return they receive a yield on their staked tokens.&#x20;

## Examples

{% embed url="<https://hummingbot.io/>" %}

{% embed url="<https://yearn.finance/>" %}
{% endtab %}

{% tab title="Social Distribution" %}
A less developed form of distribution involves sending tokens to a group of people via social media networks. There are many technical challenges with this distribution tactic today.&#x20;

## Applications Today:

{% embed url="<https://unite.community/>" %}

{% embed url="<https://yup.io/>" %}

{% embed url="<https://rally.io/>" %}

{% embed url="<https://tryroll.com/>" %}
{% endtab %}
{% endtabs %}
