I am trying to understand why
Merkle Distributor AKA merkle airdrop is used. I understand how it works, but what I don't understand is why it's a better option.
People use it when there's ICO and they want to distribute tokens, my problem is that I don't see a lot of advantage of it. Let's say we use a traditional distribution.
- we write ERC20 token contract. (
- we write another contract which creates lots of tokens and sends it to this contract. (
contract2) . So
contract2has let's say 1000000000000 tokens.
- other users call the function
contract2and in that function, we check how much ethers they pay and according to it, we calculate how many tokens to give to the users. Then, we call
address(ERC20).transfer(to, amount). This seems to work fine. **It's the user that pays the transaction fee`.
Could you explain why
Merkle Distributor makes sense here and what advantage it has ? I know what it is and how it exactly works, so no need to explain it too much.