Airdrops have been a popular strategy used by crypto projects to attract attention and raise awareness. Receiving free tokens just for being part of a project’s community is a simple incentive that can entice investors to participate.
What makes the airdrop marketing strategy so effective? Beyond the clear appeal of free tokens, crypto fund Node Capital warns that, while effective for rapid wallet growth, airdrops can be expensive with limited long-term results if not executed correctly.
According to Node Capital's “Airdropping: Some Truths” report, clear goals, communication, and a commitment of at least 10% of the token supply are crucial to success. The publication follows a review of major airdrops and their results, and offers guidance to help teams reach audiences and maintain engagement.
These interactions may include activities such as joining a Telegram group, following the project's social media accounts, or making small transactions within the project's ecosystem.
“Using many different Web3 platforms as real-world examples, they share the best metrics for tracking the particular goals set for airdrop. Measuring wallet activity, collection times, token distribution, new token holders, and key metrics like DAU and MAU are important, but priority should be given to metrics that best reflect airdrop goals. ”the report reads.
Node Capital also highlights the importance of providing incentives for users to continue participating beyond the initial attraction of free tokens. He recommends measuring key metrics before, during and after the airdrop to ensure the campaign meets its objectives.
According to Node Capital, creating an airdrop requires more than just distributing tokens via social media. Platforms must clearly understand their goals, whether it is expanding the user base, encouraging user testing, turning token holders into active participants, or decentralizing the token-holding population.
The guide also outlines best practices for measuring airdrop success, using various Web3 platforms as examples. Important metrics include wallet activity, collection schedules, token distribution, new token holders, daily active users (DAU), and monthly active users (MAU). Priority should be given to metrics that best reflect airdrop objectives.
Additionally, Node Capital addresses the need for airdrops to fit the platform's tokenomics and the importance of a communication strategy to reach target audiences. He recommends managing complex aspects of airdrops, such as filtering out malicious actors, preventing Sybil attacks, and ensuring the campaign reaches the ideal audience.
