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Airdrop

Free token distribution to bootstrap communities

What is Airdrop?

Distributing free tokens to wallet addresses to decentralize ownership, reward early supporters, or attract new users. A powerful user acquisition tool, but airdrop farmers who dump immediately destroy value. Structure matters more than size.

How it works

Key takeaways

  • Free token distribution to early users

  • Reward for past protocol usage

  • Can be extremely valuable, or worthless

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Real-world example

Uniswap airdropped 400 UNI to every wallet that had used the protocol. At launch, that was worth ~$1,200. Early users got rewarded.

Related terms

CAC (Customer Acquisition Cost)

How much it costs to acquire one customer

Retention

Keeping users engaged over time

DeFi

Decentralized Finance

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