Sounds good, but I'm a bit worried that it will split the community into smaller groups and the public giveaway will be the looser.
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I don't think so. Public giveaways are for new people... It's certain that we divide by groups even from school but I don't think it's a problem... Still we have lots of people who like other people and the other people like those people... So basically it will be a private giveaway frenzy to death.
PS: Even without this more and more people are making private giveaways if you haven't noticed.
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I believe points aren't generated by Private giveaways (unless I'm mistaken), so yeah, fairly sure the Public giveaways will continue to flow in.
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I am yet to see such a giveaway myself but from what I understand it that you still need the link it's only that you won't be able to enter the giveaway unless you are a member of the correct group, in the same way you can't enter giveaways for games you already have.
This means Private Giveaways for groups can be made and posted on their groups without worry of hackers brute forcing the url because then they still wouldn't know which group to join unless they scoured all groups of Steam looking for Private Giveaways.
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If you check the sync page, and force an update, you'll notice all your Steam groups will now appear. We'll soon have an option to limit giveaways by group. This feature will only be available to private giveaways, and it'll allow groups to freely share their links without having to worry about outside members joining.
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