Airdrops have long been a popular way for new projects to gain traction and reward early adopters, especially recently with the successful launch of Blur or the much awaited announcement of Arbitrum.
However, traditional airdrops often do not require any significant commitment from the user, resulting in a low retention rate and little to no engagement with the project beyond simply holding the tokens received. Lately, such terms as “sybil attack” or “airdrop hunters” are oftenly perceived as negative, admist the bear market where projects despartely need real users.
This is where the concept of lockdrop comes in, offering a unique and more effective approach to incentivize and reward token holders. Lockdrop is a unique token distribution mechanism that serves several purpose. Here are some reasons why we need a lockdrop:
Fair distribution: Lockdrop is designed to distribute tokens fairly among users who are willing to commit their existing tokens for a predetermined duration. This ensures that early adopters and long-term supporters of the project receive a share of the tokens.
Long-term commitment: By requiring users to lock up their tokens for a specific period of time, lockdrops incentivize long-term commitment to a project. This can help to reduce volatility in the token price and increase the project’s overall stability.
Community building: By incentivizing users to hold onto their tokens and support the project’s long-term growth, lockdrops can attract dedicated supporters who are invested in the project’s success.
Network security: By requiring users to lock up their tokens, projects can discourage malicious actors from attempting to manipulate the network. This helps to ensure the project’s overall security and stability.
