Feb 29th, 2024 at 12:00
In the last article we learned about the types of airdrop. In this article we will tell you what Retrodrop is.
โ So, what is a Retrodrop? It is a reward for participants who actively used a crypto project from the earliest stages of its development. For example: Uniswap, a decentralized exchange (DEX), arranged one of the first retroadrops in September 2023. At that point, every blockchain address that had ever interacted with the platform's smart contracts before the snapshot (September 2020) received a gift of 400 UNI.
๐ What actions can you get a retrodrop for? For interacting with networks, sometimes it's enough to make a few transactions, or deposit a wallet in that network. There are no global rules between projects, each one sets its own rules.
The main problem is that we don't know the details in advance: ยท Will the project give out drops at all? ยท When will there be a snapshot and the drop itself? ยท What exactly will the drops be given out for? ยท What drop criteria (multipliers) will the project come up with?
Let's look at the most common activities: ๐ต 1. Deposit funds into the network or app - the more assets in circulation, the better for the ecosystem. This also includes useful liquidity associated with interacting with individual apps, such as freezing assets for steaking, farming, lending, and participating in liquidity pools.
๐ 2. Network IDs, domains. Identifying addresses and making them personal by registering domains or obtaining special IDs.
๐ณ 3. Voting in DAO is an activity where users keep their tokens on their balance without selling them, and use them to vote for innovations in the ecosystem, as well as to propose their development ideas. The more tokens you have on your wallet, the more impact you have when voting.
๐ 4. Dollar volume of transactions - the more transactions in dollar equivalent on the network, the better in terms of statistics and other network metrics. To take an example from the past - Arbitrum had a multiplier that awarded points for reaching a volume of 10000$ / 50000$ / 250000$.
๐5. Number of transactions - the higher the number of transactions, the higher the total commissions paid. This is a source of income for validators and individual projects in the network. It is also an indicator of activity of a particular wallet. The same arbitrum awarded points on reaching 25 / 50 / 100 transactions in the network.
โณ 6. Time of using the network or application - the longer and more often the user is in the ecosystem, the more valuable he is for the project. To get more points for this criteria, you should start using the project as early as possible and have consistency in transactions. A few transactions per week will be enough.
๐ธ 7. Interaction with a large number of applications - projects value researchers and active users highly, which is reflected in valuing and encouraging interaction with applications even outside their network.