A digital distribution of tokens and assets to users on a blockchain platform based on pre-established conditions.

Allocation is a simple term that refers to the systematic distribution of things. In the crypto space, the term refers to a digital process whereby the administrators of a crypto exchange platform distribute tokens, equity, and other crypto-related assets to users or members of the platform. The distribution process is generally based on an established protocol, so users are aware of the time of said distribution and whether or not they qualify.

Allocation is a very important part of the blockchain ecosystem, especially for crypto traders and investors who are not big on mining cryptos themselves. Thus, the asset-distribution process is intended to boost awareness of the token, as during ICOs (initial coin offerings), or pay shareholders for investments.

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