Economics
Beginner
Updated 1/15/2025
What is
Airdrop?
Free distribution of cryptocurrency tokens to wallet addresses, often used for marketing, community building, or rewarding early adopters.
An airdrop is a distribution method where cryptocurrency tokens are sent for free to eligible wallet addresses. Projects use airdrops to bootstrap their community, reward early supporters, distribute governance tokens fairly, or create awareness for new tokens. Unlike ICOs or token sales, airdrops don't require payment - eligibility is typically based on holding specific tokens, participating in the ecosystem, or completing certain tasks. In the Ergo ecosystem, various projects have conducted airdrops to reward active community members and ERG holders.
Key Points
- Free tokens distributed to eligible wallet addresses
- Common eligibility: holding specific tokens, ecosystem participation, or social tasks
- Used for fair token distribution and community building
- No payment required unlike ICOs or token sales
- Ergo ecosystem projects sometimes airdrop to ERG holders
- Always verify airdrop legitimacy to avoid scams
Use Cases
1
Rewarding early community members and ERG holders
2
Distributing governance tokens for DAOs
3
Marketing new projects and creating awareness
4
Fair launch token distribution without pre-sales
5
Incentivizing participation in testnets or beta programs
Technical Details
Airdrops on Ergo leverage native token support - projects can create tokens and distribute them to addresses in batch transactions. Smart contracts can automate distribution based on criteria like ERG holdings at a specific block height (snapshot). The eUTXO model makes airdrops efficient as tokens can be sent to many addresses in fewer transactions compared to account-based chains.
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Frequently Asked Questions
Questions about Airdrop
Common questions about this topic
Is Ergo a good investment?
This is not financial advice. Ergo has strong fundamentals: fair launch (no VC dump risk), innovative technology (eUTXO, Sigma Protocols, NiPoPoWs), active development, and a cypherpunk ethos. It's a smaller market cap project with higher risk/reward than established chains. Research thoroughly, understand the technology, and never invest more than you can afford to lose.
Comparison
Getting Started
How to get started with Ergo?
Start by getting a wallet (Nautilus for browser, Terminus for mobile). Back up your seed phrase securely offline. Get some ERG from an exchange (Gate.io, KuCoin) or DEX (Spectrum). Make a test transaction. Then explore: try DeFi on Spectrum, check out NFTs, or dive into the technology if you're a builder.
How-to
Getting Started
What can I do with Ergo?
Ergo supports a full ecosystem: trade on Spectrum DEX, use SigmaUSD stablecoin, mix transactions with ErgoMixer, collect NFTs on SkyHarbor, mine with GPUs, lend/borrow on DuckPools, bridge to other chains via Rosen, and build dApps with ErgoScript. It's a complete platform for decentralized finance and applications.
Explainer
Getting Started
How to escape financial repression with Ergo?
Ergo provides tools for financial sovereignty: self-custody with no third parties, censorship-resistant transactions via PoW, optional privacy with Sigma Protocols, and programmable money without permission. Unlike VC-backed chains, Ergo has no central authority that can freeze funds or comply with sanctions. Your keys, your coins, your freedom.
Solution
Philosophy