sybil-resistant faucet

[brenzi]

Thanks to its personhood protocol and XCM, Encointer can host a faucet on its parachain which is resilient to sybil attacks

Stakeholders

Donors

Donors fill faucets for the purpose of distributing funds to humans with sybil resistance.
Anyone can launch a new or use an existing faucet on the encointer parachain and fill the faucet with any token which is transferrable through XCM

Special case: Cash Transfer NGO

An NGO could use such faucets to transfer humanitarian aid in stablecoins directly to personhood-verified individuals from selected communities (usually selected by geographic region)

Drippers

Members from whitelisted communities may drip the faucet using their personhood reputation (one recent cycle proof of attendance allows to drip the faucet only once)

Faucet vs. Airdrop

I suggest to call this service a faucet, not an airdrop tool. The reasoning is that a faucet requires the beneficiary to take action while an airdrop is passive (One can not prevent to be targeted by an airdrop, with a faucet one can)

Security implications

Faucets are an additional incentive to launch Encointer communities and participate. This means it can also incentivises launching bot communities (which would be otherwise worthless as the newly created local currency would have no value in a bot community). That's why we need to establish a web of trust among Encointer communities to decide who can use the faucet. As a preliminary measure, we shall use whitelisting per faucet. The faucet creator can select Encointer communities which are eligible to use the faucet

Check this more elaborate reasoning on the possible backfires