In this article, I will be explaining.

Crypto Airdrops

Types of Airdrops

Eligibility criteria

What are Crypto Airdrops?

Airdrops serve as a strategy for cryptocurrency

projects to distribute tokens freely to a broad audience, aiming to boost exposure, engagement, and expand their token holder community. In this marketing approach, cryptocurrency projects distribute tokens to numerous wallet addresses, encouraging user participation through criteria like holding specific cryptocurrencies or engaging in social media channels. This method helps create a diverse and engaged community of token holders.

Types of Airdrops

There are 2 main types of airdrops

Simple tasks airdrop

Retroactive Airdrops

1.Traditional Airdrops:

Traditional airdrops involve distributing free cryptocurrency tokens to a specific audience based on predetermined criteria. Participants usually need to meet certain requirements such as:

-Referring

-Engaging

-Completing quests, bounties and tasks

-Signing up on waitlist or beta list.

-Whitelist (early/private access).

The goal is to raise awareness, attract new users, and build a community around the project.

2.Retroactive Airdrop:

Retroactive airdrops, also known as "fairdrops," involves distributing tokens to users and existing holders of a particular cryptocurrency based on their past activity on the platform. Unlike traditional airdrops that require users to take specific actions to qualify, retroactive airdrops reward users retrospectively. They are known to have huge rewards potential .

There are 2 main types of retroactive Airdrops.

1.Testnet

2.Mainnet

1.Testnest

Testnet airdrops involve the distribution of tokens on a cryptocurrency's test network rather than the main network. They tend to reward users who tested and interacted with the network with Test tokens, to detect bugs and improve general usability.

These airdrops are used for testing purposes to simulate the token distribution process (swap, Provide LP and bridge) without involving real assets. It allows developers and projects to assess the functionality of their airdrop mechanisms, smart contracts, and related processes in a controlled environment before deploying them on the live or mainnet.

Testnet activities are crucial for ensuring the smooth operation and security of token distribution systems.

The project tends to incentivize users Devs and testnet users as rewards for testing the network when it goes live on mainnet and ready to use.

2. Mainnet

Mainnet airdrops refer to the distribution of cryptocurrency tokens directly on the main or live blockchain network rather than a test network. Unlike testnet network that are used for testing purposes, mainnet activities involve using real assets to test and interact with the project. These airdrops are often launched as a part of a project's marketing strategy to attract users, increase community engagement, and distribute tokens to a wider audience. Mainnet airdrops can be associated with specific events, milestones, or as a way to reward existing token holders.

Retroactive Airdrops Eligibility Criteria

There has been tons of eligibility criteria used by different projects in the past.

Projects use and analyze blockchain interactions data to determine eligible participants, considering factors.

-Amount of transactions on the network

-Number of transactions

-Wallet Age

-Number of Active days,weeks and months

-Number DApps interacted.

-Ownership or the amount of the cryptocurrency held.

Retroactive airdrops aim to reward and incentivize existing community members.

These variations cater to different objectives, whether it's community building, marketing, testing, or rewarding existing users.