Airdrop
A free distribution of tokens to numerous wallet addresses by blockchain projects to promote awareness, bootstrap liquidity, and reward early user engagement.
What is Airdrop?
An airdrop is the distribution of tokens to multiple wallet addresses on a blockchain, often tied to the launch of a new protocol or DeFi application to drive adoption and community growth.
Airdrops have evolved into sophisticated strategies incorporating both on-chain activities—like interacting with testnets or providing liquidity—and off-chain tasks such as social media engagement or newsletter subscriptions, with eligibility determined via blockchain snapshots capturing wallet states at specific block heights. For example, projects now frequently use points systems to rank participants, converting accumulated points into tokens post-launch.
Recent airdrops emphasize rewarding genuine protocol usage over mere speculation. For example, Story Protocol rewarded early supporters of its decentralized intellectual property framework with tokens for testing and community participation, highlighting airdrops’ role in bootstrapping governance and utility in niche blockchain applications.
Participants must verify legitimacy through official channels to avoid scams, such as phishing attempts mimicking airdrop claims, and note that received tokens are generally treated as taxable income upon vesting or sale in most jurisdictions.
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Dual-Offline Payment
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Embedded Call Option
A call option integrated into a security, like converts, allowing conversion to equity.
FDV
The total potential market capitalization of a digital asset if all tokens in its maximum supply were circulating at the current price.
FATF Travel Rule
Financial Action Task Force standard mandating virtual asset service providers to share originator and beneficiary information for digital asset transfers, including stablecoins, to prevent illicit finance.