What is a Crypto Airdrop & How Does It Work? (Guide)
A crypto airdrop is when a blockchain project distributes free tokens directly to wallet addresses, often to build a user base, decentralize governance, or reward early adopters. The Uniswap airdrop in 2020, which gave 400 UNI tokens to qualifying wallets, is a notable example of this practice.
A crypto airdrop is a distribution of free tokens to wallet addresses by a blockchain project. It is often used to build a user base, decentralize governance, or reward early adopters. The Uniswap airdrop in September 2020, which gave 400 UNI tokens to qualifying wallets, is a notable example. The process involves a 'snapshot' of the blockchain, eligibility checks, and token distribution via smart contract. Some airdrops require users to complete tasks or claim tokens within a deadline. Projects use airdrops strategically, and understanding their reasons helps identify legitimate opportunities.
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