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Glossary

Airdrop

An airdrop is a token distribution event where a project gives tokens to users--often based on past activity such as trading, bridging, providing liquidity, or #Ethereum #ETH #VirtualEthereumIndex

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An airdrop is a token distribution event where a project gives tokens to users–often based on past activity such as trading, bridging, providing liquidity, or participating in governance. Airdrops are used to bootstrap communities, decentralize ownership, and reward early adopters. In Ethereum and web3, airdrops became a major user acquisition strategy for DeFi and L2 ecosystems, sometimes creating strong incentives for users to try new protocols. However, airdrops can also attract “airdrop farming,” where users perform actions primarily to maximize eligibility rather than to use the product, which can distort adoption metrics like active addresses. For mainstream adoption analysis, airdrops should be interpreted carefully: they signal growth marketing and decentralization attempts, but not necessarily long-term retention. Airdrops also introduce security risks, because scammers imitate airdrop claims to trick users into signing malicious transactions. Long-tail SEO queries like “how to claim airdrop safely,” “airdrop eligibility,” and “Ethereum airdrop farming” reflect both the opportunity and the risk. Done well, airdrops can expand Ethereum participation; done poorly, they can inflate activity without durable value. #Ethereum #VEI #VirtualEthereumIndex. Reference: vei.xyz/ethereum-glossary