Airdrops have recently emerged as a favored mechanism among cryptocurrency projects to bootstrap their communities, distribute their tokens, and incentivize early adoption. While some analysis exists, what works and what doesn’t work when communication strategies are used is quite different. Recent airdrops from projects such as LayerZero, Taiko, Optimism, and the like have illustrated varying strategies for community engagement, governance, and utility. While some airdrops focus on rewarding early adopters and testnet users, others prioritize network supporters, GitHub contributors, or even broader participation through donations and partnerships. The airdrop landscape is changing by the minute. Either intentionally or not, projects are starting to test new, creative ways to distribute tokens, foster community ownership and sentiment, and drive sustainable development.

LayerZero's "Proof-of-Donation" Airdrop

LayerZero is an omnichain interoperability protocol that connects all blockchains together while allowing developers to build and deploy omnichain applications, tokens, and experiences. Recently, it gained attention for introducing a new “Proof-of-Donation” mechanism to its airdrop. Users that were eligible had to contribute $0.10 for every token that they claimed. The proceeds by all accounts went directly to a charity of LayerZero’s choosing.

To reiterate, claiming the airdrop is entirely optional. Moreover, users can opt-in to share their information and make donations, or they can just as easily sit out the airdrop entirely. This move opened up an intense discussion of policy in the crypto space. Some members praised the program’s charitable spirit, others lambasted the required donation, viewing it as a deterrent.

The “Proof-of-Donation” model marks a shift away from conventional airdrop methods, where tokens are usually distributed at no cost to users who qualify. LayerZero’s method added a philanthropic touch by tying the value of the airdrop to a charitable initiative. Such a strategy would be more likely to bring in users with a social impact mindset.

Taiko's Multi-faceted Airdrop Approach

What makes Taiko so unique in the crypto space is its innovative Staking Airdrops. It ensures inclusivity by explicitly and actively rewarding a variety of community contributions. Perhaps the most interesting part of their airdrop approach is in the extension beyond the one-off airdrop event itself. Taiko's airdrop reached 1.28 million eligible wallets.

Taiko rewarded four distinct groups in their airdrop: testnet users, network supporters, GitHub contributors, and active Ethereum ICO participants. This comprehensive approach was meant to honor and reward all forms of contributions to the Taiko ecosystem.

By rewarding these testnet users, Taiko recognized that early adopters play a critical role in testing and refining the protocol. Honoring network advocates provided an opportunity to honor and thank those who were especially active in advocating for and supporting the project. Involving GitHub contributors showed the importance of technical contributions to the Taiko codebase. By rewarding active ETH ICO participants, this novel feature recognized the importance of Ethereum’s early supporters in its history.

Governance-Focused Airdrops: Optimism and ENS

For example, Optimism, a popular Ethereum Layer 2 scaling solution, took a hugely influential governance-inspired approach to its airdrop. The overarching goal of the project was to distribute tokens to users who would actively engage in governing the Optimism network. After almost three months, Optimism’s token is only down 23% from its launch price.

Ethereum Name Service (ENS) followed a similar approach for governance, deserving consideration among the most impactful recent airdrops by distributing tokens to every .eth domain owner. This approach aimed to empower users who had a vested interest in the ENS ecosystem and encourage their participation in shaping its future. ENS set up two decision-making groups: "Token House" for token holders and "Citizens' House" for community members.

Optimism and ENS wanted to build a decentralized governance infrastructure. To kick things off, they airdropped tokens to their most active users and domain holders, giving them the ability to vote on the project’s direction together. This tactic aligns with the congenial decentralization ethos of the crypto space. It puts community members in the driver’s seat by spreading out decision-making power, rather than concentrating it with a few chosen policymakers.

Airdrops as Community Revitalization Tools

Airdrops have been shown to successfully vivify the marrow of communities and rebuild energy during difficult bear market conditions. The BONK airdrop is a perfect illustration of the effectiveness of community-minded token distribution. It has proven adept at knitting back together momentum when the market turns sour and reigniting that local, grassroots energy.

By distributing tokens to a wide range of community members, projects can reignite interest, foster a sense of ownership, and encourage active participation. This strategy outperforms in bear markets. It’s the most convenient time, when the general mood is down, and the engagement with our community is often at its worst.

Success of the community revitalization airdrop breathes new life into a project. It welcomes new users with open arms and establishes a deeper root system that ultimately ensures far greater long-term success. It's crucial for projects to carefully consider the distribution mechanism and eligibility criteria to ensure that the airdrop reaches the intended audience and achieves its desired goals.

Airdrops with a Twist: Stellar and Uniswap

In addition to the strategies used by LayerZero, Taiko, Optimism and ENS, many other projects tried new and interesting approaches to airdrops. Beauty truly lies in the eye of the beholder. Stellar recently distributed $125 million worth of Stellar Lumens (XLM) to wallet holders. To add some juice to the airdrop, Stellar included partnerships with other entities such as Stanford d.school, Code.org, and Network for Good.

Specifically Uniswap’s airdrop gave every eligible address 400 UNI tokens (valued at around $1,400 at the time).

SCROLL had already gifted users more than 200 Marks in their SessionsLearn/Marks program, well prior to the October snapshot.

These examples highlight different strategies that projects can pursue to distribute their tokens. They further emphasize how projects create positive and meaningful connections with their communities. By incorporating partnerships, educational initiatives, and unique eligibility criteria, projects can tailor their airdrops to achieve specific goals and create a lasting impact.