Case Study: How to Use Telegram to Handle Token Distribution to Project Participants
Launching a crypto project to address a certain challenge has become the standard practice since blockchain innovation. However, four main categories are partakers of the distribution of a project token –the public, the project community, the founding team, and their foundation.
Token distribution is a critical component of every crypto project and is the mechanism through which tokens are shared with blockchain network participants. However, onboarding is a significant obstacle to widespread token use. Therefore, token distribution is required to increase awareness of your product and build a community around it.
As members of the founding team, we are aware of the significance of token distribution, which frequently takes the form of a presale to raise money and a crowd sale or airdrop to the general public who have expressed interest in the project by signing up on the project website and keeping track of its progress. As a result, interested participants are required to be part of the presale, where they would earn more tokens if they own a certain number of tokens by a certain date if they participate in the campaign.
However, the team recognizes that there can be no distribution if there is no public awareness or acceptance of the project. As a result, the only method for ensuring the token’s quick and easy distribution is to have an engaged community surrounding the project. Besides, building communities is essential for the project’s growth because there will be no people to conduct exchanges without a community rallying around a project.
Community Management With Telegram
So, before any interested participant joins the community to receive updates and additional information about the project and, importantly, the distribution of the token, all participants must fill out a form and finish a quick telegram task as part of the registration procedure.
This registration serves as a database for the project and helps the team estimate and analyze the performance of the project’s publicity. Therefore, the addresses entered during the registration procedure are gathered to distribute the token. So, after the necessary data filtering to separate every partaker of the token, we produced a spreadsheet for each address and the matching amount of token to be distributed to the participant based on the amount purchased during the presale. Also, the addresses of the interested participants to receive the free airdrop.
Telegram has been the mainstay of any crypto project since it allows for direct interaction between users and the team. Moreover, establishing and building a community around a project is critical for more public adoption of the project, as the team constantly discusses important information and the project’s vision. As a result, additional participants expressed interest in the project before the intended date for the distribution of the project token, citing the community as social proof of the project’s credibility. As more participants join the community, so does the address to receive the project token increase. Consequently, we kept updating the list of addresses as more signups were done and more forms were filled out.
However, the team was concerned about how to distribute the token to every community member because it would be difficult and time-consuming to give tokens to a huge number of users individually, not to mention the transaction fee that would be incurred with each transaction.
Need a Smart Contract To Handle Distribution?
The team deliberated on developing a smart contract code to handle the token distribution to participants after evaluating the cost implications of giving the tokens individually. However, building a smart contract code will necessitate people manually claiming the token on the decentralized application created for the purpose. In addition, high gas fees are another challenge to deploying smart contracts to distribute the token to participants.
On the other hand, the team decided to leverage third-party dApps while batching the token distribution into groups and automatically transferring the token to participants. To receive the token, individuals would have to go through the procedure of registering and connecting the wallet used with the dApps. Even though the procedure eliminates the manual process of distributing the token to each participant, it is time-consuming because it requires the participants to undertake additional actions to acquire their token and, worse, incur transaction charges to receive the token.
So, the question now is:
- How do we distribute the token to each participant?
- How can we prevent paying exorbitant transaction costs?
- How can the token be distributed automatically?
We then further researched the best approach to get the token to each participant in the community.
Fortunately, we came upon the Cwallet (previously CCTip), which features a bulk payment option that allows tokens to be sent all at once and effortlessly. Furthermore, in contrast to the challenges of other approaches we’ve studied, Cwallet does not necessitate deploying a smart contract code or a dApps platform for integration.
Getting The Token Listed On Cwallet
Cwallet is an interactive wallet with over 800 tokens that can be distributed to the community. However, because we have our token for the project, we applied for a listing of our token on the Cwallet. Interestingly, Cwallet supports a wide range of networks, and all we had to do was fill in the requested information about our token. Surprisingly, the listing process took 2–3 days after all the required token information had been submitted and accessed.
Related: How Cwallet Monitors Listed Tokens for Ongoing Compliance
Using Cwallet For Token Distribution
Once our token was listed on Cwallet, distributing the token to each participant became simple and seamless.
First, we had to select the token and approve the transaction, and the distribution was ready!
Here are the 3 main steps we completed to use the Cwallet bulk payment for our token distribution;
- Located the Cwallet bulk payment tool
- Entered all participants’ information (uploaded a CSV file for bulk payment, which is very convenient!)
- Distributed the token with the bulk payment order. Done!
Another feature of the Cwallet bulk payment tool that we enjoyed was that it automatically checks for formatting errors in the uploaded CSV file and notifies us of the line where the issue is found. After we’ve completed all revisions and verification, we had to examine the details on the final payment page, and done! That’s all! It was super simple, quick, and saved us a lot of time!
Like we did, you can use the Cwallet bulk payment to handle your token distribution within your community or make payments to multiple addresses without incurring a transaction fee.
Follow this step-by-step procedure that helped us get maximum results for a more complete guide on setting up the bulk payment.
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What’s more?
Cwallet does not charge any deposits, withdrawals, and token swap fees. Therefore, using this wallet is absolutely FREE!
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