What is a token airdrop?
A token airdrop distributes part of a crypto project's supply to people who meet its rules.
Version 1
GlossaryA token airdrop distributes tokens to people who meet a project’s rules. Those rules may reward early use, trading, holding points or another recorded action.
Imagine a project reserving 100 tokens for users. If it awards them according to points, someone with more eligible points may receive more tokens. The exact conversion still depends on the project’s final rules.
A little more technical
An airdrop can be unlocked immediately or released over time. Projects may add identity, location or anti-bot checks. They can also change eligibility before distribution if their terms allow it.
Common misunderstanding
Points are not the same as a guaranteed number of tokens or a guaranteed dollar value. A large airdrop allocation can still be split among many users, and the token price can fall after launch.
Sources: Variational’s token plan and points rules are a current project-specific example.