Airdrop
Free distribution of tokens to wallet addresses, typically to reward early users or generate awareness.
In-Depth Explanation
Airdrops distribute tokens based on criteria like past usage, holdings, or activity. They're a marketing and distribution mechanism but have evolved into a user acquisition strategy. Airdrop farming (using protocols specifically to qualify) has become common, prompting projects to use sybil detection.
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Related Terms
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View all →Emissions
New tokens distributed by a protocol as incentives, typically to liquidity providers or users.
Liquidity Mining
Earning token rewards by providing liquidity to a DeFi protocol.
Token Buyback
When a protocol uses revenue to purchase its own token from the open market, reducing circulating supply.
Dividend
Direct distribution of protocol revenue to tokenholders, typically in ETH, stablecoins, or the protocol's native token.