Retroactive Airdrops: 7 Tips for Beginners
Retroactive airdrops offer a fascinating yet intricate avenue in the cryptocurrency landscape. Navigate them with care, equipped with these essential guidelines.
A year ago, retroactive airdrops were rare incentives provided by crypto projects. However, the number of businesses looking to reward their early users has grown significantly. Consequently, the criteria to qualify for these airdrops have become more stringent.
In this article, we share 7 tips aimed at helping beginners tap into the potential of retroactive airdrops and adeptly manage their assets amidst limited market liquidity and intense competition.
Keep an Eye on Fees
Most anticipated retroactive airdrops pertain to EVM-compatible networks. As a result, transaction fees in these networks are computed in Ethereum's native currency. The average fee amount can fluctuate based on the main network's traffic.
For instance, when Gwei (a measurement unit for fees in EVM networks) stands at 10–11, a zkSync blockchain transaction might only cost $0.3. But if Gwei surges, carrying out transactions may not be cost-effective. In such situations, it's better to wait, ensuring you get more value for your money.
In the Metamask wallet's browser version, you have the option to manually decrease the fee rate. This means your transaction might take longer to process, but it allows you to manage your costs more effectively.
Bundle Your Activities
There are over ten crypto initiatives currently that could potentially offer retroactive airdrops. Some of them sync up well with one another, allowing you to combine your efforts across them.
For example, when you move assets via Orbiter's cross-chain bridge from zkSync Era to Polygon zkEVM, this single transaction gets logged by three entities: the explorers for zkSync Era and Polygon zkEVM, as well as Orbiter Finance's ledger. This approach allows you to engage with several apps through fewer operations.
However, always be mindful of the transfer fee, as there might come a time when the action isn't financially viable.
Variety Over Volume
Arbitum's criteria for its retroactive airdrop centered around the diversity of the transactions. This included actions with a cross-chain bridge, managing liquidity, interactions on the Arbitrum Nova network, and more. Up-and-coming projects will probably mirror this method, possibly designing a similar reward distribution multiplier.
Thus, rather than merely increasing the number of your transactions, focus on diversifying them. Engage with an array of applications, DeFi protocols, smart contracts, and perform various kinds of transfers and deposits. It's far more advantageous than simply making over 100 typical token swaps on a DEX platform.
Limit Your Exposure to Risks
While retroactive airdrops offer exciting opportunities in the crypto world, they're just one piece of the puzzle. It's crucial to stay informed about the potential risks, such as project failures or the possibility of not receiving expected rewards.
Another factor to consider is the unpredictable nature of retroactive airdrops. It's impossible to predict when a project will distribute its tokens to early users. Therefore, it's essential to balance your risk and avoid placing too much investment in one avenue, regardless of the number of promising projects.
Assess On-Chain Data
Numerous online platforms offer valuable insights about blockchain projects. On-chain metrics, such as active addresses, total value locked in the network, transaction fees, the number of transactions, usage rates, and new user counts, can provide a comprehensive picture.
Platforms like Dune offer a wealth of such data. By analyzing on-chain information, you can gauge what other network participants are up to, identify the projects they're engaging with, and discern which applications are in demand.
Moreover, this data can give an indication of the project's trajectory and its primary focus areas within DeFi.
Stay Consistent
It would indeed be unusual for a wallet to register over 100 transactions in a single day and then go inactive. Regular transaction activity was a criterion for Arbitrum's retroactive airdrop.
To uphold a reputable network standing, it's beneficial to maintain consistent activity, whether daily or, at the very least, weekly. Consistent interaction with the blockchain ensures a continued presence, regardless of the daily transaction count.
Prove You're Not a Bot
As crypto projects look to distribute airdrops in the future, they may face the challenge of managing a vast number of users. Efforts will probably be made to sift out multi-account users and drop hunters to enhance rewards for genuine participants.
To demonstrate to a project that you're not a bot or operating multiple accounts, it's advisable to:
- Maintain Significant Trade Volumes: Regular transactions and a respectable wallet balance can mark a genuine user. Accounts with a mere $10 balance, for instance, might appear suspicious.
- Engage Across Multiple Networks: This shows you're a consistent user of the ecosystem, not someone who opened a wallet just to qualify for a specific drop.
- Steer Clear of Repetitive Actions: Numerous guides detail how to qualify for retroactive airdrops. To stand out and appear genuine, it's wise to be diverse in your actions and not strictly follow step-by-step guides.
- Actively Engage with DeFi: The real value of the DeFi sector lies in its utility. If you need to trade one token for another, consider doing so through a project that hasn't yet released its own token. This demonstrates you're extracting genuine utility from the DeFi systems in various networks.
- Stay Active on Project-specific Social Platforms: Regular engagement on platforms like Twitter and Discord is essential. Interacting with the community, posting consistently, and keeping in touch with the project can be favorable for your standing.
Furthermore, considering the creation of Web3 passports, like those offered by GitCoin and Galxe, can elevate your network reputation. For a comprehensive understanding of digital passports and their significance, refer to our dedicated article on the topic.
