The Nature of Airdrops: Scam, Gift, or Gratitude?

The ZK (ZKsync) and ZRO (LayerZero) token airdrops have concluded amidst widespread criticism and dissatisfaction, and the “high-interest L2 network savings leader” Blast airdrop is on the way.

This has once again sparked widespread market debate about the fundamental question: “What exactly is an airdrop?” Odaily Planet Daily will summarize and analyze industry perspectives and recent key figures’ comments on this topic for readers’ reference.

Airdrops are Presents

Jupiter co-founder Meow posted on social media today: “Airdrops are presents. It is not a reward. It is not a loyalty program. It is not a growth hack. It is a present. It is as simple as that. A present. If you ask what you get from giving a present. It is a present no more. The meaning is gone. Good faith over. Goodbye.”

Interestingly, Meow later removed the final word “Adios” (Goodbye in Spanish) from the post, possibly feeling it was inappropriate or that it conveyed a too decisive “farewell” attitude toward users.

It is clear that Meow sees airdrops as a friendly interaction between project parties and users, akin to a “gift” a friend brings when visiting. It’s appreciated but shouldn’t be expected or demanded.

LayerZero CEO’s Approach

As a leading project in cross-chain interoperability protocols, LayerZero had high expectations for its token airdrop, comparable to ZKsync, one of the “L2 Four Heavenly Kings.” However, project CEO Bryan Pellegrino (Bryan) has a different attitude towards token airdrops compared to ZKsync’s official stance of “no large-scale Sybil filtering.”

LayerZero initiated a nearly two-month “witch hunt” campaign on the X platform to “ensure real users receive the airdrop.” Many users were anxious, but the final small single-account airdrop results disappointed many.

Furthermore, Bryan sees token airdrops as a form of “charity” or “bribery” from the project to the users, suggesting that users have a duty to contribute to the project’s development by donating.

In response to criticism of the LayerZero airdrop’s requirement to donate 0.1 USD worth of tokens per ZRO token, Bryan said, “Donations are not mandatory. If you don’t want to donate, don’t claim the tokens. They are not something you own but something provided by others.”

This perspective diverges from the traditional view of airdrops as a collaboration between project parties and users to boost project valuation and market cap.

Industry Reactions

Yearn core developer banteg criticized this mandatory donation as a disguised ICO and called for stopping bulk funding to Protocol Guild, suggesting that more support should go to smaller initiatives.

Uniswap founder Hayden Adams has a perspective on airdrops that aligns more with the expectations of the cryptocurrency market. His approach is exemplified by Uniswap’s successful airdrop, which received widespread acclaim:

• Over 13,000 users participated within three hours of UNI token launch, with gas fees reaching 650,000 USD.
• Clear and relatively low thresholds, mainly distributing tokens to “historical liquidity providers, interactive users, and SOCKS redeemers/holders.”
• Each user address could claim 400 UNI tokens, worth 1,344 USD at the time, which later reached nearly 12,000 USD in value.

Hayden believes airdrops should be a way to generate market competition, build stronger community ties, and show real care and consideration, rather than being stingy with token distribution.

Airdrops as Marketing Investment

For users who have interacted countless times but received no airdrop or found the airdrop returns insufficient, airdrops often feel like a scam.

For VCs, funds, and investors in many crypto projects, airdrops are a justified “return on investment.”

For some project founders and team members who believe their project’s success is primarily due to their efforts, airdrops are a gift to “cooperative users.”

In reality, airdrops are an alternative form of “seed user accumulation, external promotion, and product brand marketing” expenditure. Projects should not be overly generous, distributing tokens to “airdrop hunters” or “Sybil clusters,” nor should they be excessively stingy, leaving loyal users feeling cold and betrayed.

An effective token airdrop should be like a well-planned marketing campaign, with clear goals, serving the project’s overall development, and ultimately achieving a decentralized distribution of tokens and positive market reputation.

In conclusion, project parties should recognize that token airdrops are a subcategory of market marketing, and airdrops with only negative effects are better left unissued.