A technique used when first launching an altcoin . A set number of coins are pre-mined and given away for free to encourage people to take interest in the coin and begin mining it themselves. Though the amounts given away are small, faucets teach people about Bitcoin and other altcoins and help them become comfortable using wallets without having to risk their own money.
Malone, J.A (2015). Glossary of Bitcoin Terms and Definitions. United States: Lulu Press, Inc