Airdrop Glossary: Terms Every Crypto Enthusiast Should Know
Whether you’re new to crypto or a seasoned participant chasing the next big airdrop, understanding the language used around airdrops is key. Here’s a breakdown of essential terms that can help you navigate the world of token distributions more confidently.
Airdrop
Airdrops refer to the distribution of cryptocurrency tokens or coins to multiple wallet addresses, usually for free. Projects use them to reward users, increase awareness, or distribute governance rights.
Allocation
This is the total number of tokens set aside for airdrop distribution to eligible participants.
Alpha
Alpha refers to early or insider information about upcoming airdrops or token launches. Having access to good alpha can give participants a major edge in securing rewards.
Blockchain Snapshot
A snapshot captures the state of a blockchain at a specific block height. It’s commonly used to determine airdrop eligibility based on wallet holdings at that moment.
Bounty
Unlike standard airdrops, bounties offer rewards for completing specific tasks, such as reporting bugs, creating content, or engaging on social media. They require more effort but can be more rewarding.
Claim Period
This is the limited timeframe during which eligible users can claim their airdropped tokens. Once it ends, unclaimed tokens usually return to the project’s treasury.
Community Airdrop
These airdrops specifically target active community members—think Discord contributors, governance participants, or content creators who support the project’s growth.
Dust Attack
A dust attack involves sending tiny amounts of crypto to wallets to analyze their activity or prepare for phishing scams. Though they resemble small airdrops, their intent is malicious.
DeFi (Decentralized Finance)
DeFi refers to financial applications built on blockchain that operate without centralized intermediaries. Many DeFi projects reward early adopters with airdrops.
Eligibility Criteria
These are the requirements users must meet to qualify for an airdrop—like holding specific tokens, participating in governance, or using a certain platform.
ERC-20
A technical standard for creating fungible tokens on the Ethereum blockchain. Many tokens distributed via airdrops follow this standard.
Fair Launch
A fair launch aims to give everyone equal opportunity to acquire tokens, often using airdrops instead of exclusive early access or private sales.
Fork
When a blockchain splits into two separate chains, it’s called a fork. Projects sometimes airdrop new tokens to holders of the original chain’s tokens.
Gas Fees
Blockchain transactions come with gas fees. Claiming an airdrop often involves paying these fees—sometimes, they’re higher than the value of the airdrop itself.
Governance Token
These tokens allow holders to vote on protocol decisions. Many projects distribute governance tokens via airdrops to build decentralized communities.
Holder Airdrop
These airdrops go to users holding a specific token or NFT at the time of a snapshot.
HODL
A popular term meaning to “hold on for dear life.” Many projects reward long-term holders with airdrops.
Liquidity Provider
Users who supply assets to decentralized exchanges or DeFi protocols are known as liquidity providers. They’re often rewarded with airdrops for their contributions.
Lockdrop
In a lockdrop, users lock their tokens for a set period and receive new tokens in return. It’s a way to show commitment to a project and earn airdrops.
Retroactive Airdrop
These airdrops reward users for actions taken in the past—often before the project even announces an airdrop is coming.
Rug Pull
A scam in which developers abandon a project and run off with user funds. Sometimes, fake airdrops are used to lure in victims before a rug pull.
Sybil Attack
A Sybil attack happens when someone creates multiple wallets or fake identities to game an airdrop and claim more tokens than they should.
Snapshot
Similar to a blockchain snapshot, this term refers to capturing data at a specific time to determine which wallets are eligible for an airdrop.
Testnet
Testnets are blockchain environments used for testing features before mainnet launch. Participating in testnet activities is often rewarded with future airdrops.
Tokenomics
Tokenomics is the study of a token’s economic model—its supply, distribution, and utility. Airdrops often play a big role in shaping tokenomics strategies.
Vesting
Vesting schedules lock tokens and release them gradually. Many airdrops come with vesting to encourage long-term engagement rather than quick sell-offs.
Vampire Attack
A tactic where a new project tries to “steal” users from a competitor by offering attractive airdrops or incentives to switch over.
Whitelist
This is a list of wallet addresses approved to receive an airdrop or participate in a token sale. Getting on the whitelist often requires completing certain tasks.
Wallet
A wallet is your digital vault for cryptocurrencies. It’s where airdropped tokens are sent and where you manage your crypto assets.
Conclusion
Airdrops can be a great way to earn tokens, explore new projects, and engage with blockchain communities. But to truly take advantage of them, understanding the terminology and mechanisms behind them is essential. Keep this glossary handy as you navigate the fast-paced world of crypto airdrops.