What is an Airdrop?

Airdrops are a fundamental method of token distribution in the space, aimed at attracting new users to projects, countering established competitors, or rewarding long-term community members. At Eclipse Fi, we view airdrops as an effective tool for token distribution and specific incentivization, suitable as a module within a multi-stage launch.

At Eclipse we believe that airdrops can be a useful tool in the distribution of tokens, attraction of new users and incentivisation of specific actions. We envision airdrops fitting well as a module inside a multi-stage launch.

How do Airdrops Work?

The process of airdropping involves distributing tokens to participants based on past on-chain behavior, affiliation, or participation in certain quests or campaigns. Tokens can be dropped either as a one-time event or an ongoing campaign, and requirements can vary significantly. Airdrops can be claim-based, vested over time, or tied to particular actions.

At Eclipse Fi, airdrops can be vested and not released until later, or locked into another launch module such as a liquid auction or lockdrop, enabling users to provide value back to the project and enhance their airdrop. Implemented in this manner, airdrops can become a vital phase of a larger modular launch incorporating a number of other mechanisms. Projects can also use the Eclipse front-end for tracking and claiming airdropped tokens.

Why Launch Using an Airdrop?

Improper use of airdrops can lead to significant issues. For example, incentivising the wrong users or at the wrong time can backfire. Similarly, distributing tokens to users who undervalue them or at a time when they can sell them can result in community dissatisfaction. Airdrops should be strategically utilized to drive specific behaviors, reward key contributors, or reach users typically unreachable through token sales. Certain parameters, such as proof of personhood, can be implemented to prevent multiple accounts and ensure sybil resistance.

Used effectively in this manner, an airdrop can allow a project to quickly and efficiently distribute tokens to a broad and diverse user base, fostering community engagement and interest in the project. An airdrop also acts as a promotional tool, creating buzz and attracting new users to the platform, while rewarding existing users or holders of a specific token, thereby enhancing the overall ecosystem and network effect.

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