What is Airdrop?
Last reviewed 2026-05-03
An airdrop is a distribution of tokens to wallet addresses, typically free, used to bootstrap a network or reward early adopters. Airdrops can be retroactive (rewarding past activity) or forward-looking (incentivizing future engagement).
Famous examples: Uniswap (UNI, 2020 — 400 UNI per past user, ~$1,200 at launch); Arbitrum (ARB, 2023); Hyperliquid (HYPE, 2024); Jito (JTO, 2023).
How it works
A team first defines eligibility: which on-chain actions count (swaps, bridging, governance votes, NFT holding), over what period, and with what minimums. At a fixed snapshot block they query the chain or an indexer to build the address list, then apply sybil filters that cluster and exclude farm-like wallets.
An allocation formula assigns amounts — flat per address, tiered by activity, or points-based. Distribution then happens one of two ways. Small lists may be pushed directly, with the team paying gas to transfer tokens to every address. Most large drops are claim-based: the team hashes the full allocation list into a Merkle tree and publishes only the root in a distributor contract; each user submits a Merkle proof, and the contract verifies it against the root, marks the claim spent, and transfers the tokens.
Claims usually expire after a window, with unclaimed tokens returning to the treasury, and some allocations vest over time. Legitimate claims never require a seed phrase — fake "claim" sites are the most common airdrop scam.
Why it matters
Airdrops align early users with project upside, transfer billions in value to retroactive contributors, and have become the dominant launch model for new tokens.
Real-world examples
Uniswap UNI (2020, 400 per user), Arbitrum ARB (2023), Hyperliquid HYPE (Nov 2024), Jito JTO (2023), Wormhole W (2024), Ethena ENA (2024).
Related terms
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Browse GlossaryFrequently asked questions
What is an airdrop in crypto?
An airdrop is a distribution of tokens to wallet addresses, typically free, used to bootstrap a network or reward early adopters.
What are the two types of airdrops?
Airdrops can be retroactive (rewarding past activity) or forward-looking (incentivizing future engagement).
What is the most common airdrop scam?
Fake 'claim' sites that ask for a seed phrase are the most common airdrop scam; legitimate claims never require a seed phrase.