Leading cryptocurrency fund Node Capital released “Airdropping: Some Truths.“, a thorough guide that explains how to maximize an airdrop campaign. Node describes how to utilize their Airdrop Assist Tool to monitor outcomes quantitatively and how to match techniques with the objectives of the airdrop.
The Node Capital team decided to share their expertise by producing a detailed guide that would explain the findings and highlight the best techniques teams may adopt for their own airdrop campaigns after evaluating all of the top airdrops and analyzing the outcomes. Any team looking to engage a broad audience and maintain their attention should use this guidance.
The primary takeaways include:
Airdrops are not promotions without risk. They are excellent for rapidly increasing wallet growth, but if done incorrectly, they may be quite costly and provide little long-term benefits.
For airdrops to have a significant effect, there has to be communication, defined objectives, and a commitment of at least 10% of the token supply.
The free tokens may draw users in, but you need to provide them a compelling incentive to stick around and use your platform.
Quantify the important things. Making sure the campaign has the intended impact may be ensured by choosing important metrics and tracking them before to, during, and after the airdrop (Node Capital provides their Airdrop Assist Tool).
The Node Capital team demonstrates that more goes into creating a successful airdrop than most platforms are aware of. Any platform hoping to gain the greatest value for their money has to conduct some introspection before accepting a bunch of tokens and advertising the airdrop on social media. Node offers solid guidance on what assignments need to be finished well in advance of the airdrop launch. The platform must be fully aware of its objectives before initiating an airdrop: Is it trying to attract more users? Urge folks to carry out quality assurance and user testing? Transform prospective token owners into engaged contributors? Alternatively, diversify and decentralize the token holders and driving the DAO? There are many very good reasons to conduct an airdrop, and each one calls for a distinct strategy for getting the drop off the ground.
Node provides guidelines for evaluating an airdrop’s efficacy. They provide the most effective metrics to monitor the specific objectives established for the airdrop, using several Web3 platforms as actual examples. While tracking wallet activity, collection schedules, token distribution patterns, new token holders, and crucial metrics like DAUs and MAUs are all vital, the data that most accurately represent the airdrop objectives should take precedence.
The airdrop configuration has to be meaningful to the platform’s intended new audiences as well as the existing community. Instead of being an afterthought, the airdrop has to make sense inside a platform’s tokenomics, and in order to reach the intended consumers, the appropriate communication strategy needs to be used.
Words of Wisdom
Node Capital delves further advice on managing more intricate parts of an airdrop in addition to recommended practices. For instance, different approaches to weeding out spammers, sybil assaults, and participants who may like to participate but don’t align with the objectives of the airdrop operation. Not only must the right audience be targeted, but it must also be made sure that no malevolent activity dilutes the airdrop.
The team also talks about the need of other crucial components, such as inspecting the smart contracts to make sure the airdrop goes smoothly and without a hitch and how to effectively comprehend and cooperate with the laws that apply to a certain platform. It is important to emphasize these crucial components and to provide enough time and money to ensure their quality.
Airdrop Analysis Using Python
The company is publishing the guidance together with an iterative development project called Node Capital’s Airdrop Assist Tool. It enables crucial measurements and analysis required to track an airdrop’s progress and gives a clear picture of the campaign’s efficacy. Although Node notes that the tool is likely to evolve in the future, it can provide a good grasp of these crucial measures.
The tool may provide pre-built analysis and dynamic visualization to give a clear image of the airdrop’s activities using a variety of scripts. It can also help choose (and filter) the appropriate user set to target with the airdrop.
Or Harel of Node said of the airdrop tool:
“After using it successfully in our own projects, it became clear that the best way to maximize the impact of the Airdrop Assist Tool is to make it open source. We want to provide real value, not just words. This tool offers both analytical insights and visualizations, serving as an iterative planning tool for airdrops. It’s about real solutions, not just concepts, empowering the crypto community to use, refine, and enhance it repeatedly. That’s the essence of what Web3 is all about—open and free innovation that continues to improve.”