In blockchain and cryptocurrency, “Airdrop” denotes disseminating digital assets to the general public. This can be achieved by holding a specific token or having an active wallet address on a specific blockchain.
Airdrops fundamentally differ from the distribution of coins or tokens during an Initial Coin Offering (ICO). In ICOs, the digital asset on offer is usually bought with a different coin or token. However, airdrops do not necessitate any purchase by the recipient, implying that the assets are disseminated at no cost.
Airdrops frequently serve as a promotional strategy to increase the visibility of the specific coin or token being disseminated. They also function as a means to broaden the distribution of the asset’s holders.
Airdrops generally operate on the principle that a user must possess a specified asset quantity in a public wallet at the snapshot’s moment. This snapshot represents the blockchain’s current status at that specific instant, determining eligibility for the airdrop.
In July 2017, OmiseGo executed an airdrop for Ether holders on the Ethereum blockchain. They distributed 5% of the OmiseGo tokens, at a rate of 0.075 OMG per ETH, to all wallets that held more than 0.1 ETH at the time of the snapshot.
Some individuals in the crypto industry view airdrops and forks as a form of dividend payment for digital asset holders. This is because they are seen as an extra reward distributed to token holders proportionally.
