We continue to introduce you to different types of airdrops, today it's the turn of hard forkdrop.
In the world of cryptocurrencies, where innovations and changes are constant companions of the development of blockchain technologies, the concept of airdrops has become an integral part of the strategy of many projects. Airdrops (eng. airdrop) is the distribution of cryptocurrency or tokens to users for free, which is usually used to promote new blockchain projects or attract new users. However, one of the lesser-known but interesting variants of airdrops is the hard forkdrop. In this article, we will look at what it is and how it differs from traditional airdrops.
### What is a hard forkdrop?
Hardforkdrop (from the English hardforkdrop) is a distribution of cryptocurrency or tokens that occurs as a result of a hard fork. A hard fork is a major update to the blockchain that splits the network into two separate branches, each of which operates according to its own rules. This can happen due to technical changes in the blockchain protocol or disagreements in community management.
When a hard fork occurs, users who own the original cryptocurrency at the time of the hard fork typically receive new coins or tokens based on their wallet balances. This situation is a typical example of a hard forkdrop.
### How does hard forkdrop work?
A hard forkdrop is implemented by providing new coins to all owners of the original cryptocurrency at a certain point in time, which is determined by the moment of the hard fork. For example, if a user had a certain amount of coins in his wallet before the hard fork, after it he will receive an equivalent amount of new coins in the newly created network.
The process looks like this:
1. Blockchain Fixation: At a certain point in time, often called a "snapshot" (*snapshot*), the state of the blockchain is fixed. All wallets and balances are determined based on this state.
2. Distribution of new coins: After the hard fork, new coins are distributed to cryptocurrency holders from the original network based on the snapshot.
### Advantages of hard forkdrop
1. Diversification of assets: Users can get new cryptocurrencies without additional investment, which can be a great opportunity to diversify their portfolio.
2. Community motivation: Hard forks often occur due to differences in the vision of blockchain development. The distribution of new coins motivates the community to support one of the branches of the network.
3. Growth potential of new tokens: New coins after a hard fork can quickly increase in value if the new network finds support and popularity among users.
### Examples of hard fork drops
1. Bitcoin Cash: One of the most famous hard forks occurred in 2017, when the Bitcoin blockchain split into two networks — Bitcoin and Bitcoin Cash. Owners of $BTC received an equivalent amount of $BCH after the hard fork.
2. Ethereum and Ethereum Classic: In 2016, disputes in the Ethereum community led to a hard fork that created Ethereum Classic. Owners of $ETH received new ETC tokens at the time of the hard fork.
### Disadvantages and risks of hard fork drops
1. Uncertainty of market value: New coins may be unstable in price or have no significant market value at all.
2. Tax Consequences: In many countries, receiving new tokens as a result of a hard fork may be considered taxable income, requiring additional financial accounting.
3. Community Fragmentation: Hard forks can split the community, leading to less support for both networks and weaker market positions.
### Visnovok
A hard forkdrop is an interesting and specific type of airdrop that occurs as a result of hard forks of blockchains. For users, this can be an opportunity to get new coins without additional investments, but with certain risks related to the volatility of new tokens and possible tax consequences. In the world of cryptocurrencies, it is important to monitor such events, because they can significantly affect the portfolios of investors.