Glossary
Airdrop
A free distribution of tokens by a crypto project to users' wallets, usually as a reward for prior activity.
An airdrop is a way for a crypto project to distribute new tokens directly to the wallets of selected users, usually free of charge. Eligibility criteria vary — most commonly, they involve prior use of a given application or protocol, holding a specific cryptocurrency during a certain period, or participating in a testnet program.
Airdrops are often used by new DeFi projects to build a user community and decentralize ownership of the governance token. However, watch out for fake airdrops that ask for your private key or seed phrase — this is one of the most common scams in this space.