If you are interested in earning free cryptocurrency one of the easiest ways to do so is through Airdrops.
In this article, we will look at what Airdrops are, what the term Airdrop Farming means, and how to use the knowledge that you gain about these terms to your advantage.
First of all, let us look at what Airdrops are in the section below.
What is Airdrop?
Airdrops are events organized by project management as a way to distribute their coins to interested investors with the hope of increasing the popularity, reach, and network activity for the project as well as the network that the project utilizes for its functioning.
Crypto Airdrops are meant to distribute a token in a fair and sustainable manner to interested participants. Therefore in order to ensure the fairness of the distribution and avoid potential discrepancies in the process many projects set out some guidelines to become eligible to receive their token.
The steps that one has to take to become eligible and receive the maximum amount of token is what is being referred to by the term Airdrop farming.
Now, let us look closer into the details of Airdrop farming and how it works.
Airdrop farming: Definition and Mechanisms
As we mentioned before Airdrop farming is the steps that one takes to ensure that they become eligible for the maximum amount of tokens during their drop.
The term Airdrop farming much similar to actual farming is a process that helps to make sure that you get the maximum yield for the amount of work that you have put towards getting the end product which in this case is crypto tokens.
A lot of the Airdrop projects function based on a point system wherein one user who has fulfilled more criteria than another user gets presented with more shares in coins than the other.
In order to prevent the participants from intentionally checking each box for eligibility and giving off the appearance of excess demand in the project the project managers make sure not to release any details of the checklist for eligibility beforehand.
Due to this very reason many of the participants are unaware of what eligibility criteria have been set by the project managers to get the coin.
However, one way to get an edge over the other participants in getting more scores is by looking for the commonality in the list of demands that previous projects had put up during their airdrops.
The requirements for the airdrop are put in place so that a single individual does not try to use multiple wallet addresses to claim the coin.
From the part of project managers attempts like these to claim the coin more than once are looked at as efforts made by the individuals or group of individuals to take control of the protocol, which they refer to by the name “Sybil attacks”.
Often times the individuals who conduct such activities might just be looking to get more tokens through the token distribution system than to take control of the network.
This however being a legitimate threat is more or less addressed by the requirements that the project puts up for the Airdrop eligibility.
Let us now look at how to make the most out of Airdrops and what are the common eligibility criteria set by Airdrop events.
What are the common Airdrop eligibility criteria?
The list below shows a bunch of eligibility criteria that have been common for a lot of Airdrop projects.
These eligibility criteria include the following:
- Bridged funds into the network
- Conducted transactions during a certain period of time
- Completed a variety of transactions in the network
- Conducted transactions that exceeded a particular value in the network
- Bridged more than a certain amount of assets
These criteria help the project managers reward the participants according to their involvement in the network.
Tips to increase your rewards
A great way to increase your token yield is by following up with the listed eligibility requirements in the network that the project is associated with.
One of the best bets to make while dealing with an airdrop on a specific blockchain network is to get more involved in the top decentralized apps (dApps) in that network.
Whereas if the Airdrop is based on a decentralized app itself then you are advised to focus on the activities in that app.
Other miscellaneous activities that you could engage in to increase your chances of getting more tokens are initiating activities such as staking, swapping, and others like providing liquidity and voting on the Governance of the platform.
Making sure that you follow up with the following activities will infinitely increase your chance of getting a higher share in the Airdrop event.
Now let us look at what we can conclude from all the details that we have looked at in the sections above.
Final Thoughts
There is no doubt that Airdrops are one of the best ways to familiarise yourself with a particular token and its ecosystem.
Rewarding the involvement of individuals in this process is a great way to build a stronger community and ensure the success of future events.
Airdrop farming helps you to get the most out of this process and thus it should be studied closely so that each user can get the best out of their efforts.
