Airdrops distribute free tokens to wallet addresses that meet specific criteria. The project is not being generous. It wants users. A new protocol needs wallets interacting with its contracts, trading its token, and talking about it. Sending tokens to early users is cheaper than buying ads and often more effective.

Most airdrops require on-chain activity before a snapshot date. You bridge assets, swap tokens, provide liquidity, or vote on governance proposals. The more you do, the larger your allocation. Arbitrum's 2023 airdrop rewarded wallets that had bridged funds or used its apps before a March snapshot. Optimism filtered for governance voters and repeat bridge users instead of passive holders. People call this farming. It takes time, gas fees, and a tolerance for uncertainty.

Common airdrop types

• Standard — simple eligibility, often based on holding or signing up
• Bounty — complete social tasks or test a protocol
• Holder — targeted at existing holders of a specific token or NFT

Phishing sites appear within minutes of every major announcement. Fake claim portals drain wallets with one signature. Use a fresh wallet for farming and never sign approvals you do not understand. Airdrops can be worth thousands, but the risk is real and the tax bill is not optional.