I was a part time lecturer at the University of Toronto in the latter parts of my career prior to retirement (did it for the sheer joy of teaching).

I found that students tended to be on Facebook, Youtube and the like while in class as I first started taking attendance. When I successfully removed that component from participation (took a lot of fighting as I was not/am not a tenured full time professor), yes, those who showed up to classes dropped numbers wise, but the engagement was much better.

I preferred the latter model as I would prefer those who want to be there to be in my class so we can have a dialogue. Win win for those who want to be there and for those that would rather sleep in.