Sirwin
Sirwin

How Should an Ideal Airdrop Be?

By idiosyncratic | Idiosyncratic Crypto | 29 Aug 2023


How many airdrops have you received so far? Also, how many airdrops have made you feel satisfied with their value? Actually, airdrop is the way to create new money in the crypto ecosystem. Out of thin air, you receive thousands of bucks and new a couple of million dollar worth of tokens is supplied to the market.

Image from thread

Even though sometimes airdrops are overhyped or undervalued, they are crucial. Airdrops create new money, encourage existing blockchain enthusiasts to move more of their assets, and encourage newcomers to stay in the ecosystem with hopium.

The most important question: Why do Projects airdrop millions of dollars for free?

First of all, have a look at the current state of SUI and SEI, the projects that tried different ways of airdrop which was "unfair" for the majority of the community members that spend their money, time, and attention on them. As a consequence of their dissatisfactory airdrop attempt, they are left behind.

NO AIRDROP; NO COMMUNITY

That is a simple and effective slogan by crypto enthusiasts. If the projects underestimate the potential of this thread, they may fade away easily.

Image from thread

Understanding their fault, the developers of SUI came up with a second way of airdropping SUI to the community members who have not left the blockchain.

Do you think it will be as effective as making a "fair" airdrop? I do not think so.

SEI is likely to suffer from the same concern. Let's see what will be their Plan B to survive in wild crypto.

An Ideal Airdrop Eliminates Bots

First of all, there is a prerequisite for an airdrop to be successful and appreciated -> Eliminate the bots as much as possible.

There are tons of transaction, farming, and bridging bots actively used. These smart guys are doing their job to get a bigger piece of the pie with their perfect operations.

Once the bots are allowed, the real users will get a lower percentage and lower rewarded tokens. This may either result in a sell-off or less desire to add value to the ecosystem.

Testnet / Early Adopter Rewards at MAX

Who are the ones spending more of their resources on the new project?

Absolutely testnet users! Also, this group has the most fragile community members because if they are not fed well, they have a tendency to create FUD or blame the team: e.g., Suiscam / Seiscam hashtags 🤡

So, keep their wallets well fed as a result of their precious efforts if you want to form a community.

Reward the Rich with High TVL / Volume

As long as bots are eliminated, you will have a unique sample of crypto whales that are seeking new blockchains to be a good stakeholders of the native token. There is an unwritten rule in crypto if you want to go viral and make cheap gainz, feed VCs and influencers.

Turning your new project into a VC chain is not a necessary action if the team and product are unexampled in crypto. However, as most of projects are like twins, there is always room for VCs and whales in the airdrop process.

Finally, Crowd & CEXs

We are proud members of this group.

Actually, this group has an important role but the members can be replaced easily. When the airdrop hunters smell the money and potential tokens on the chain, they rush into that.

Also, when the crowd is gained, they push CEXs to list the tokens to trade them on these exchanges. At that point, Cryptocom, Gate io, Gemini, Hotbit, Upbit, and such relatively low-scale projects are the first step for the tokens. Then, we have OKX, Kucoin, and Bybit listings. The final level is listing on Binance and Coinbase to skyrocket the price of the token and reach millions of people.

What other group can we add to that list? Share with us below 👇

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idiosyncratic
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