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Source: Bithiah Koshy, Community Labs; Compiled by: Deng Tong, Bitchain Vision
Preface
Cryptocurrency airdrops have become a popular way to distribute tokens and incentivize participation in the new blockchain ecosystem.
By comparing recent major airdrops (without a specific order), we can identify potential issues and best practices.This article will analyze these airdrops and compare them to a unique approach to fair issuance of AO tokens in the Arweave ecosystem.
Starknet
Starknet has encountered some problems with STRK tokens due to changes in the space investment space of the first round of STRK token terms.STRK airdrops have been criticized by users who claim that despite major deals, they are still not eligible because the eligibility criteria require a minimum of 0.005 ETH at the snapshot on November 15, 2023.
After the first airdrop on February 20, 2024, large STRK token holders sold millions of tokens, causing the price to fall 60% from its peak.Since then, this has led to a difficult recovery in token prices.
Jito
Jito airdrops 100 million JTO tokens to early users, stakers, validators and searchers, using hierarchical allocations that are beneficial to small participants.The allocation of airdrops favors small users, which is seen as a fair decentralized governance and an approach to fostering community engagement.However, some larger investors believe that the risks they take are not rewarded as they deserve.Some people are concerned about Sybil attacks, but that is not a big problem.
Airdrop allocation selection has a significant impact on decentralization, governance and participation.It is worth noting that requiring eligibility criteria for economic activities can mitigate Sybil attacks.Grading allocations that benefit small users can promote equality, but can frustrate big investors.
Arbitrum
On March 23, 2023, Arbitrum airdropped 1.162 billion ARB tokens to more than 625,000 qualified address and protocol DAOs and converted them into DAOs.However, serious technical problems plagued the launch, and the high gas fees kept many users from receiving tokens.
This failed airdrop slapped the community’s trust in Arbitrum.Users criticized the project for being underprepared, and some accused it of deliberately keeping gas fees high.Arbitrum Airdrop shows us the importance of adequate preparation, load testing and clear communication during high demand events.
Celestia
Celestia airdropped its native token, TIA, to more than 600,000 eligible users.However, only about 190,000 users (less than one-third) received the tokens, leaving nearly $1 million worth of TIA tokens unclaimed.In its first week of launch, Celestia has struggled to gain significant attention, with less than 350,000 transactions in four days after the mainnet was launched.
Low subscription rates and moderate transaction volumes indicate a lack of interest or awareness among potential users.Providing attractive staking rewards and ensuring token stability through lock-in periods helps incentivize participation and growth.Focusing on building communities, engaging developers and displaying their unique value propositions is key to driving adoption and networking campaigns.
EigenLayer
EigenLayer uses 15% of its EIGEN token supply for airdrops, rewarding users who stake ETH or Liquid Staking Tokens (LST) on the platform.Airdrops have sparked controversy in the crypto community, with many questioning the fairness of token allocation, excluding certain user groups, and the initial non-transferability of tokens.
Most of the tokens (55%) are allocated to investors and EigenLayer teams, while relatively small portions are left to stakers.This uneven distribution leads to unfair and centralized accusations.It is important to ensure fair token allocation, strive for inclusive participation, consider flexible token transferability, and prioritize transparency.
zkSync
On March 24, 2024, zkSync distributed 3.675 billion ZK tokens to 695,232 eligible wallets.The space investment space depends on activity thresholds and ecosystem contributions.89% of tokens are allocated to eligible users, and the remaining 11% are allocated to contributors.Airdrop tokens have no vesting period or lock-in period and can be collected by January 3, 2025.
There are concerns that airdropped tokens may end up falling into the hands of a few exploitative wallets rather than being fairly distributed.zkSync airdrop highlights the need for strong Sybil resistance to ensure fair distribution of tokens.Potential enhancements include social verification, on-chain behavior analysis, capping per wallet, support for organic activities, and more.
AO’s fair start in the Arweave ecosystem
The fair launch of AO is a unique allocation activity designed to reward Arweave (AR) token holders and incentivize liquidity bridges AO network.A fair start will allocate 100% of the 21 million AO token supply to the community, with 36% being allocated to AR token holders and 64% being allocated to users who bridge assets from other networks to AOs.
1. Allocation method
Unlike most token airdrops that allocate some tokens to private sales, team members, or early investors, fair releases allocate all tokens to the community.AR token holders will receive AO tokens as a proportion of their AR holdings, while users who bridge assets such as staked ETH (stETH) from Ethereum or Solana to AO will receive the remaining AO tokens.This approach ensures a fair and transparent distribution process.
2. Token Economics
The AO token follows a Bitcoin-like halving cycle, with a gradually lower distribution rate every five minutes.This leads to a smoother issuance curve compared to the event where Bitcoin suddenly halved every four years.The scarcity of AO tokens (maximum supply of 21 million) and unique distribution mechanisms lay a solid foundation for its long-term value proposition.
3. Community participation
AO’s fair release actively encourages community engagement by rewarding AR token holders and incentivizing liquidity bridges.The fair start has facilitated the growth and adoption of the AO ecosystem by allocating large amounts of tokens to users of bridge assets.Additionally, developers can build applications that require asset deposits, create opportunities for users to support their favorite projects while earning AO rewards.
4. Long-term impact on the Arweave ecosystem
A fair start has the potential to drive huge value and growth within the Arweave ecosystem.By rewarding AR token holders, fair start strengthens synergy between Arweave and AO, encouraging common growth and adoption.The influx of bridge assets from other networks can drive the development of innovative dApps on AO, leveraging Arweave’s permanent storage capabilities.
In addition, AO tokens provide economic security to the AO network through its flexible Proof of Stake (PoS) mechanism, which further enhances the overall robustness of the Arweave ecosystem.As AO grows and attracts more developers and users, the demand for Arweave storage services may increase, driving the value of AR and AO tokens.
Summarize
Clear eligibility criteria, technical preparation and fair token allocation are crucial to crypto airdrops.Fair issuance of AO tokens in the Arweave ecosystem stands out in its unique approach, distributing 100% of the tokens to the community, rewarding AR token holders, and incentivizing liquidity bridges.AO Fair Issuance emphasizes community participation, transparent distribution and ecosystem synergy, and can serve as an example of future token allocation activities.In the evolving crypto area, prioritizing equity, decentralization and long-term sustainability will lead to greater success.Future airdrop success depends on coordinating incentives, promoting community engagement and promoting sustainable growth of the ecosystem.
