From the LBank blog.
The recent launch of the Arbitrum (ARB) token can be seen as a monumental event in the cryptocurrency and Ethereum ecosystem. This event marks a significant milestone for the airdrop community, shedding light on the challenges and opportunities found in token distribution. In this article, we will analyze the ARB airdrop, explore its benefits and pitfalls, and discuss some innovations that other protocols have implemented to help improve the airdrop experience.
Airdrops continue to be the preferred method for rewarding communities and decentralizing protocol ownership. However, simple Uniswap-style airdrops are no longer the norm. Modern airdrops now incorporate tiering standards and anti-witch-hunt mechanisms to ensure a more equitable and secure distribution.
On March 23, over 1.16 billion ARB tokens were airdropped to 625,000 active wallets. While the distribution was largely successful, there were several technical and token distribution issues that marred the experience. The high on-chain activity caused network congestion, crashes, and temporary inaccessibility of key websites, highlighting the limitations of blockchain technology and Web2 infrastructure.
Despite the challenges faced during the ARB airdrop, other protocols have been drawing knowledge from past airdrops and subsequently designing novel distribution strategies to maximize value in this updated arena. These innovations include:
1. Targeted distribution standards: Protocols like Optimism and Sudoswap have rewarded users for a variety of on-chain interactions and economic commitments, ensuring token holders are aligned with the ecosystem’s goals.
2. Improved anti-witch mechanisms: Reducing standards and rewarding good on-chain user behavior can help limit tokens distributed to witch attack farmers, making the airdrop process more secure and equitable.
3. Push versus Pull airdrops: While pull-style airdrops like ARB’s can drive governance participation, push-style airdrops (like Optimism’s second airdrop) can avoid network congestion and offer a smoother user experience.
4. Attracting more TVL: The NFT market Blur has announced airdrop eligibility criteria in advance, attracting users and increasing its market share. This approach contrasts with ARB’s retrospective distribution, which missed the opportunity to attract more users and TVL.
5. Allocating tokens to users of competing protocols: Optimism and Sturdy Finance have allocated a portion of their tokens to users of rival protocols, in so doing capturing new liquidity and strengthening relationships between multiple project parties and users.
The best airdrop practices are constantly evolving as protocols seek to optimize user qualifications, attract liquidity, and create seamless user experiences. The ARB airdrop, whilst an important milestone, will certainly not be the final form of airdrops. As the crypto industry continues to change and grow, we can certainly expect further innovations in the way airdrops are conducted.
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Disclaimer: The opinions expressed in this blog are solely those of the writer and not of this platform.
This article came directly from the LBank blog, found on https://lbank-exchange.medium.com/the-evolution-of-airdrops-learning-from-arb-and-innovating-for-the-future-8dfa36e88ad9?source=rss-87c24ae35186——2