Airdrops

What is an Airdrop?

Airdrops are a key method of token distribution, used to attract new users, compete with established projects, or reward long-term community members. At OruxAI, we consider airdrops an effective tool for targeted token distribution and incentivization, making them a valuable module within a multi-stage launch.

At OruxAI, we believe airdrops are a valuable tool for token distribution, attracting new users, and incentivizing specific actions. We see them fitting seamlessly as a module within a multi-stage launch.

How do Airdrops Work?

The airdrop process involves distributing tokens to participants based on past on-chain activity, affiliations, or participation in specific quests or campaigns. Airdrops can occur as a one-time event or an ongoing campaign, with requirements varying widely. They may be claim-based, vested over time, or tied to particular actions.

At OruxAI, airdrops can be vested and released later, or integrated into another launch module, such as a Liquid Auction or Lockdrop. This approach allows users to contribute value back to the project while enhancing their airdrop. When implemented in this way, airdrops become a vital phase of a larger modular launch, incorporating multiple mechanisms. Projects can also leverage the OruxAI front-end for tracking and claiming airdropped tokens.

Why Launch Using an Airdrop?

Improperly executed airdrops can create significant problems. For example, incentivizing the wrong users or distributing tokens at the wrong time can backfire. Likewise, giving tokens to users who undervalue them - or when they are likely to sell immediately - can lead to community dissatisfaction. Airdrops should be used strategically to encourage specific behaviors, reward key contributors, or reach users who may not participate through traditional token sales. Measures such as proof of personhood can also be implemented to prevent multiple accounts and ensure sybil resistance.

When used effectively, an airdrop enables a project to quickly and efficiently distribute tokens to a broad and diverse user base, fostering community engagement and interest. Airdrops also serve as a promotional tool, generating buzz and attracting new users to the platform, while rewarding existing users or holders of specific tokens. This approach strengthens the overall ecosystem and enhances the network effect.