Overview
An airdrop distributes free tokens to users, often to reward early adoption or bootstrap a community. It creates initial distribution and awareness. Airdrops are a key launch strategy.
How It Works
Protocols send tokens to eligible addresses based on activity, holdings, or tasks. Recipients may claim them or receive them directly. Airdrops generate attention and user growth.
Why It Matters
Airdrops bootstrap communities and reward early users, but they can attract farmers and cause sell pressure. Retroactive airdrops reward past contributions. They are a defining feature of Web3 launches.
Related Concepts
Airdrops relate to Token launches, Vesting, and Retroactive Airdrops. They are a Community distribution mechanism.