I’ve worked with 15+ app teams and 100+ incentive/point farmers (via @rumpellabs), and I continue to see the public misunderstand the goals & expectations of airdrops. In general, teams use airdrops for: 1. KPI Growth - Paying for performance; ie paying incentives (often via points) for certain actions like TVL, volume, liquidity, etc. 2. Token distribution - Getting tokens into the hands of future protocol stewards & hodlers, sometimes based on exogenous factors. “Incentive” airdrops serve KPI growth, whereas “Amorphous” airdrops serve token distribution & alignment intent. Teams *expect* selling from incentive airdrop recipients (farmers gotta eat), but then go great lengths to discourage selling from amorphous airdrop recipients (b/c they were the chosen ones). Over the last couple of days, @clairekart rightfully called out the shortcomings of amorphous airdrops, @hosseeb introduced some nuance that delineated them from incentive airdrops, but I think we can take it...
Yes, Airdrops are Dumb. But they don’t have to be. This reaction to this post really got me thinking. Here's a question: Why do IPOs always pop? Simple—it's by design. Every company wants holders instead of dumpers on their cap table. Institutional investors like BlackRock and Fidelity are the long-term holders that every CEO wants as shareholders, so they get offered shares at a discount to where the market is expected to clear. That discount creates the IPO "pop." Retail doesn't get that discount because retail is a swarm—some are holders, some are dumpers, and companies can't tell which is which at the IPO. So retail pays market price. The same dynamic plays out in crypto. VCs and institutions have legible long-term reputations that make them easier to differentiate from mercenary capital. The best value-add investors get preferential access, while retail pays sticker price. But airdrops happen on the transparent blockchains, where you can see which wallets are which. So teams...
9.06K
0
The content on this page is provided by third parties. Unless otherwise stated, OKX TR is not the author of the cited article(s) and does not claim any copyright in the materials. The content is provided for informational purposes only and does not represent the views of OKX TR. It is not intended to be an endorsement of any kind and should not be considered investment advice or a solicitation to buy or sell digital assets. To the extent generative AI is utilized to provide summaries or other information, such AI generated content may be inaccurate or inconsistent. Please read the linked article for more details and information. OKX TR is not responsible for content hosted on third party sites. Digital asset holdings, including stablecoins and NFTs, involve a high degree of risk and can fluctuate greatly. You should carefully consider whether trading or holding digital assets is suitable for you in light of your financial condition.