A detailed explanation of the encryption airdrop strategy, and the recommended 6 short-term opportunities in the near future

Crypto airdrops are a popular method for web3 projects to distribute tokens and build momentum for their platforms, especially startups. Encrypted airdrops are also one of the most popular marketing strategies for users. Through serious research and smart participation, users can get in touch with the latest and highest-quality projects through airdrops, and at the same time, they can also obtain good economic benefits. In this article, veDAO will deeply analyze the encrypted airdrop, including its definition, history, process and classification, etc., and provide experience and precautions for safely participating in the airdrop. Finally, veDAO recommends the 6 most worthwhile airdrop opportunities in the near future.

1. Airdrop definition

Airdrop refers to an act of sending free encrypted tokens to a specific digital wallet address in the blockchain field. In other words, airdrop is an act in which the project side presents encrypted assets to users. For project owners, a crypto airdrop is a marketing strategy to promote a new project and its crypto token, raise awareness about the project, and foster adoption. For users, encrypted airdrop tokens are sent for free, but sometimes they may be required to complete specific tasks, and good economic benefits can be obtained by participating in encrypted airdrops. Crypto airdrops are not limited to new crypto projects, established web3 projects can also use this strategy to improve token distribution and reward loyal community members.

2. Airdrop history

Airdrop is a long-established culture in the currency circle. The earliest cryptocurrency airdrop took place in June 2010. Gavin Andresen, a software engineer who developed the Bitcoin system with Satoshi Nakamoto, set up a website called Free Bitcoins. Users can get 5 bitcoins as long as they paste their bitcoin payment address on the website. The value was only 1 cent (about 0.3 Taiwan dollars) back then. Encrypted airdrops have truly become an important means of operation for the project side, which is generally believed to have started in 2014. To understand the nature of crypto airdrops, it is necessary to have a clear understanding of its evolution history.

• 2014: The first crypto airdrop is initiated by a project called "Auroracoin". It distributes free tokens to all citizens of Iceland as a strategy to promote the adoption of new crypto tokens. But in the end, both the project and the token ended in failure. At this time, the airdrop does not have any interaction or other requirements, just confirm that you are a community member.
• 2017: With the ICO boom, airdrops are becoming more and more popular, and a large number of web3 new projects start to use airdrops as a way to attract potential investors and users. Electroneum was one of the projects that successfully used the airdrop strategy during this period. It airdropped more than 5,000 tokens to users for free. It was so successful that more than 120,000 users downloaded the app and created accounts in the first two weeks of the event.
• 2018-2019: Crypto airdrops start to become more sophisticated and targeted, with projects using them to reward early adopters, community members, and loyal users. Steemit is one of the big projects that has done a great job of building a strong community through airdrops, which distribute tokens called “Steems” to users based on their level of engagement on the platform.
• 2020: The rise of defi has brought a new type of airdrop, that is, web3 projects distribute tokens to liquidity providers or users participating in liquidity mining activities. The UNI airdrop of the famous Dex project Uniswap in September 2020. It was one of the largest and highest-profile airdrops in crypto history and spawned countless imitators.
• 2020 crypto airdrops are also beginning to be used as a way to distribute tokens in a fair and transparent manner, through mechanisms such as "snapshot" airdrops that reward users based on their previous interactions or other engagements. DeFi project 1INCH was one of the first to attempt to use snapshot airdrops to fairly distribute tokens.
• 2021: Regulatory policy surrounding airdrops begins to gain clarity, with some jurisdictions requiring airdrops to be registered as securities offerings.
• 2022: More and more projects choose to airdrop. BAYC’s Apecoin airdrop to its NFT holders, the Optimism project’s OP token airdrop, and Apto’s airdrop to its early adopters are all influential airdrops this year. From 2022, the requirements for airdrops are getting higher and higher. There are witches to do the screening. Airdrops start to be multi-dimensional, and multiple requirements are required to obtain airdrops.
• 2023: At present, airdrops are already one of the most important parts of the crypto market. Since this year, the number and number of airdrops have experienced huge growth. The Arbitrum airdrop received more than 42 million ARB in the first hour, which is the most sensational airdrop this year.
• Summary: Encrypted airdrops have been evolving iteratively and have become an important part of the encrypted market. According to the degree of difficulty of participating in airdrops, airdrops in history can be divided into the following stages: confirmation of community members, simple registration or 0 transfer, simple interactive sunshine type, witch check for screening and heavy participation users, and multi-dimensional airdrop conditions.

3. Airdrop process

Airdrop is a marketing tool, each specific project will choose different encrypted airdrop types according to its specific needs, and the working mode of each airdrop type is also different. The general airdrop process can be divided into:

• The team behind the project decides the amount of tokens airdropped to users. The next step is to choose the target audience and platform they will use to distribute the tokens while setting eligibility requirements for users to receive airdropped tokens.
• Users select a high-quality web3 project they are interested in from the ongoing airdrop projects. *General airdrops require users to meet specific requirements to be eligible for free tokens. These requests may include following the project on social media, sharing posts, joining discord/Telegram groups, filling out surveys, and interacting with the project on tasks, etc. Some projects require users to complete (KYC) verification to participate, while some projects only require user registration. The requirements for a crypto airdrop vary depending on the preferences of the project, but the main goal is to get as much publicity and adoption as possible for the project or new token.
• After meeting the requirements, the user submits details to register for the airdrop.
• After the registration is completed, the user needs to wait for the distribution of tokens.
• Projects generally perform airdrops through smart contracts, and tokens are automatically distributed to user wallets.
• After tokens are distributed, users will receive them in their wallets. After receiving the tokens, the user can choose whether to continue to hold the tokens or trade them on a crypto exchange.

4. Airdrop type

Each airdrop type has unique characteristics and purpose, and we need to understand the different types of crypto airdrops. Below are the popular types of cryptocurrency airdrops.

Holder Airdrop

Holder airdrops distribute tokens for free to those who hold a certain amount of digital currency in their wallets. Project teams typically take snapshots of users’ cryptocurrency holdings at specific dates and times. If the wallet balance reaches the minimum requirement, the recipient will receive tokens for free based on the amount held at the time of the snapshot.

Many new projects are airdropping tokens to wallet holders of Bitcoin (BTC), Ether (ETH), or other successful tokens because they have the largest communities in the space.

Standard Airdrop

The most original airdrop method, users only need to register relevant wallets or contracts to get free airdrops. No other information is required. Airdrops are quick and easy, but the project developers have set limits on the number of tokens each user can get. They operate on a first-come, first-served basis.

Bounty Airdrop

Bounty airdrops are generally a requirement for pre-announcement to obtain airdrops, and users are required to participate in promotional activities. Bounty airdrops require users to complete certain tasks, such as sharing a relevant post about the project on Twitter, joining the project's official Telegram, or creating a post on Instagram and tagging a few friends. To claim the bounty airdrop, users fill out a form with wallet address information and provide proof of task completion.

Exclusive Airdrop

Exclusive airdrops are limited to sending cryptocurrencies to designated wallets. Generally speaking, airdrop token recipients have had prior exposure to the project and are either active community members or early supporters of the project. These airdrops are often used as a way to reward loyal users and build a strong community around the project. In September 2020, the decentralized exchange (DEX) Uniswap airdropped 400 UNI to all wallets that had interacted with the platform’s protocol before a certain date. Users holding governance tokens will have the right to vote on future decisions related to project development.

Faucet Airdrop

A faucet airdrop is a regular (usually daily or weekly) distribution of small amounts of tokens to participants. These airdrops are usually of small value and are designed to encourage users to engage with the project on a regular basis.

Hard Fork Airdrop

This one is a little different. When a coin is hard forked from its original blockchain, a new token is created and those who hold the original token will receive an equal amount of the new token in their wallets. The most famous example is the Bitcoin Cash (BCH) hard fork that occurred in 2017: Bitcoin users who held BTC automatically received an equal amount of BCH.

Summarize

Cryptocurrency airdrops can be simply divided into two categories according to the timing of the announcement of the qualification: pre-announcement and post-recognition. Bounty airdrops and faucet airdrops are mostly pre-announcement types, and other types of airdrops are mostly post-recognition types, and they can also be pre-announcement types. Project parties will choose the type of cryptocurrency airdrop to perform based on their motivation and customer acquisition plan.

Five, experience and precautions

When participating in cryptocurrency airdrop activities, the following points are some airdrop experiences and precautions summarized by veDAO, which can be used as a reference for users when participating in airdrop activities:

• Do research: Before choosing to participate in the airdrop campaign, do sufficient research on the chosen project and its team.
• Don't think of airdrops as an investment: It is recommended to think of airdrops as a bonus rather than a main investment strategy.
• Use separate email address and wallet address: It can help users to protect users' personal information from being shared.
• Pay close attention to the project: Airdrops usually have a time limit, and users need to complete tasks or submit wallet addresses within the specified time. If the time is missed, tokens cannot be obtained. Keeping up to date with the latest developments and information about projects can also help users avoid all possible scams. *Please be patient: Airdrop distribution may take time and may be delayed due to various factors.
• Beware of fraud: airdrop frauds are common, users should not participate in airdrop activities of unreliable projects, and do not disclose your private key or personal information. The myEtherWallet phishing scam is the latest high-profile scam in which scammers created a fake website and promoted a fake airdrop that required users to enter their private keys in order to receive tokens.

Special airdrop tools:

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6. Recommend empty opportunities

After a lot of screening and research, the following veDAO will help you sort out the 6 recent potential airdrop projects that are worth participating in or will be airdropped soon.

LayerZero

LayerZero (ZRO) is a full-chain interoperability protocol. Ability to provide authentic and guaranteed messaging with configurable trust-free. It currently runs on most major blockchains, including Ethereum, Avalanche, Polygon, BNB Chain, Aptos, Fantom, Arbitrum, and Optimism. LayerZero has yet to launch its token, but the team mentions the ZRO token in its documentation. However, projects are expected to airdrop tokens to their dApp users.

Here are some suggestions for participating in any potential airdrop:

• Stake STG and vote on Stargate Finance
• Using Stargate, USDC, Aptos and LiquidSwap bridges
• Cross-chain swap using SushiSwap
• Using Bitcoin Bridge
• Interact with other dApps on LayerZero
• Get a character in the Stargate Guild

It should be noted that there is no official announcement from the LayerZero team regarding the airdrop. So any suggested ways to engage are just guesswork.

zkSync

zkSync is a ZK Rollup that provides scalable and low-cost transactions on the Ethereum blockchain. This is done by submitting a proof of validity to an Ethereum smart contract along with the bundled transaction, zkSync Era Mainnet Alpha is now available to the public. The team stated that they will launch a native token in the future, leading to hope that some tokens could be airdropped by then. Presumably, to qualify for a zkSync airdrop, a user should:

• Add zkSync Era Alpha mainnet on MetaMask
• Interact with zkSync Lite and zkSync Era Mainnet Alpha
• Complete missions on zkSync's Crew3
• Interact with the zkSync ecosystem, such as Orbiter Finance or ZigZag.

Notable because some zkSync dApps may not have launched their tokens yet. This way you have a chance to get double airdrops.

StarkNet

StarkNet is a decentralized Validity-Rollup (or "ZK-Rollup") running on top of Ethereum, providing unlimited computing power to decentralized applications without sacrificing security or compatibility. It utilizes STARK, a secure and scalable cryptographic proof system, to ensure transactions are safe and secure. StarkNet is license-free, meaning anyone can use it without third-party approval. StarkNet's alpha v0.11.0 just went live on Testnet, and a mainnet upgrade is expected shortly thereafter.

The best way to get a potential StarkNet airdrop of STRK tokens is to interact with their testnet. Additionally, some protocols on StarkNet do not yet have tokens. Therefore, using their DApps also allows you to get their airdrops, allowing you to earn double rewards.

Polygon zkEVM

Polygon zkEVM (MATIC) is a layer 2 scaling solution for Ethereum that leverages the scaling capabilities of zero-knowledge proofs while maintaining Ethereum compatibility. Sandeep Nailwal, the co-founder of Polygon, strongly hinted on Twitter that there will be a huge MATIC airdrop for zkEVM users. The best way to get a potential airdrop is to interact with the Polygon zkEVM mainnet. For this, the Polygon zkEVM is added to MetaMask. Then, connect to the Polygon zkEVM through a local bridge or a third-party bridge such as Orbiter Finance. Finally, interact with QuickSwap, the only active dApp currently deployed on the Polygon zkEVM.

Vela Exchange Airdrop

Vela Exchange is a decentralized perpetual contract platform, which aims to improve the transaction speed and security of DeFi derivatives by using the hybrid mode of off-chain order book and on-chain settlement. According to official documents, Vela users can build positions based on the performance of synthetic assets, with leverage up to 100 times. Vela will be airdropped and mainnet launched on June 26, 2023. The project’s official Twitter has hinted that maximizing the transaction volume for users is the key to getting the largest airdrop. Additionally, participating in their Lightning Deal Contest not only gives you a chance to win their prizes, but also gives you even more airdropped tokens. The first contest ended with a prize pool of $10,000 in USDC and $2,000 in eVELA rewards. Vela will be hosting a second flash mob that will be adjusted to support traders of all sizes. However, the main event will be their Grand Beta Trading Contest where Vela promises to offer big prizes.

Blur NFT Marketplace

Blur (BLUR) Season 1 airdrop ends on February 14, 2023. Blur announced that they will airdrop over $300 million in BLUR in Season 2, which was originally scheduled to take place in April 2023, but has now been postponed.

To participate in Blur's Airdrop Season 2, users can connect their wallets to Blur's platform and bid for NFP. Blur has confirmed that it will distribute over $300 million in tokens during the second quarter. Airdrops are conducted on a point-based system. The system rewards bids for NFT collectibles based on 24-hour trading volume. Participants can also earn more points through loyalty to maximize their BLUR token airdrop. For Season 2, Blur also introduced Blend (short for Blur Lending). Blend is a peer-to-peer perpetual lending protocol for NFTs that allows NFT holders to borrow ETH against their NFTs without selling them. With the launch of Blend, the Blur team also introduced lending points, which are doubled for certain NFT collectibles. The depreciation of points caused by the postponement of Blur has caused widespread dissatisfaction in the community. With the decline in token prices, the profits of participating in the interaction of the second season may not achieve the expected results.