Base recently introduced "Verify Onchain," a system that protocols can use to verify a user's identity without resorting to a traditional KYC process. The goal is simple: to make it harder to farm airdrops using thousands of wallets (so-called Sybils). Airdrop farming has been a billion-dollar business since 2020 (Uniswap, the first DeFi airdrop in history). Essentially, there are Sybil farming industries that use tens of thousands of addresses to claim the same airdrop. The distributed capital (from hundreds of millions to tens of billions of dollars, such as Hyperliquid) is divided among all eligible addresses. However, 600k eligible users doesn't mean they are 600k real users; approximately 200k-300k addresses belong to a few entities. If you think airdrops are child's play, you're sadly mistaken. Between 2023 and 2024, many protocols distributed enormous sums to individuals that a worker wouldn't earn in 40 years of traditional work.

BASE VERIFY ONCHAIN
Base's idea, however, raises several questions. Essentially, they want to link the address to a social identity. While attempting to limit abuse, it risks introducing new problems that could especially affect legitimate users. Sybil tokens have been one of the biggest challenges for token-giving protocols for years. A single individual can control thousands of wallets and multiply the rewards of an airdrop, penalizing real users.

PROBLEMS WITH THE BASE VERIFY METHOD
I mentioned earlier how it works. A protocol could require connecting to a social media platform when claiming an airdrop. Essentially, it could require X, TikTok, or Discord. Other centralized services could also be required. Your address (if eligible for the airdrop) must pass this test; otherwise, even if eligible, it won't be able to claim. In addition to the platform itself, additional restrictions could also be imposed: number of followers (to prevent someone from creating an account just to claim an airdrop), verification checkbox, and account age.

There are many problems with this method:

1) It excludes perfectly legitimate users. If a protocol decided to distribute an airdrop only to those with:

- a verified account X;
- an account X with at least 500 followers (imagine having 499 and being excluded);
- an account X that is at least 3 years old (anyone with a new account would be excluded);
- an Instagram account;
- a TikTok account;
- Coinbase One;
- or any other supported service,

many users would be automatically excluded even if they had actually used the protocol. On-chain participation would be overshadowed by the possession of an external digital identity. In some areas, social networks or exchanges may be restricted.

2) Sybil users can simply buy accounts; this system doesn't eliminate the Sybil market. It transforms it. If the airdrop market requires it, tomorrow verified TikTok or Instagram accounts, whether years old or with thousands of followers, could be purchased directly. For those managing thousands of wallets, buying accounts is simply a new operating cost.

3) It penalizes those who value privacy. One of the most appreciated features of DeFi has always been the ability to participate without having to connect one's real identity. Many users deliberately choose not to use social networks or to keep their on-chain activity separate from their public identity.

4) It connects wallets and identities. While this isn't a traditional KYC, the system still creates a link between a wallet and a specific digital identity. The more connections are created (social networks, exchanges, centralized services), the easier it becomes to build a user profile. Pseudonymity, one of the fundamental principles of blockchain, is inevitably weakened.

5) Increased security risks. If a wallet is linked to a person or a public profile, it also becomes a more attractive target. A potential data leak or system compromise could facilitate targeted attacks, phishing, or even the so-called "$5 wrench attack," which involves physical coercion to gain access to funds. Privacy also protects personal safety.

6) It introduces new gatekeepers. DeFi was born as a permissionless system. If participation requires access to platforms like social networks or centralized services, new intermediaries are introduced. However, linking wallets to external digital identities risks simply shifting the problem without eliminating it.

7) It introduces arbitrary criteria: Why X and not DeBank? Why TikTok and not YouTube? Why Discord and not Telegram? Why Instagram and not Facebook? Why Coinbase Pro and not Binance?

8) It makes airdrops more centralized (not meaning a concentration of tokens, but dependent on social media platforms).

WOULD SYBIL BE DEFEATED?
It would certainly make their lives more difficult, but Sybil professionals could adapt by purchasing social media accounts, while legitimate users would lose some of the privacy and permissionless nature that has always characterized DeFi. The beauty of DeFi is precisely the distance from the traditional world of: login with email and password, social media, SMS authentication, etc. Furthermore, funds can already be frozen on many L1 and L2 platforms. If we also include KYC, what changes with CEXs?
I don't think it's right to sacrifice the principles that have made decentralized finance different from the traditional system.

Article always updated with all the possibilities of on-chain farming (airdrop): Some Sites To Earn Crypto Bonus (Old & New)