Airdrops have emerged as a powerful tool for token distribution, user acquisition and community building as the blockchain industry has grown. They provide a unique opportunity for projects to distinguish themselves, incentivize desired behaviors and foster long-term relationships with their user base. But the question remains: Do airdrops work?
Based on my prior research in the Journal of Corporate Finance, the answer — at least according to the data so far — is “yes.” But my new research with Kristof Lommers and Lieven Verboven highlights that their efficacy hinges on thoughtful design, clear objectives and strategic execution.
Christos Makridis is the founder and CEO of Dainamic, a financial technology startup that uses artificial intelligence to improve forecasting, and serves as a research affiliate at Stanford University and the University of Nicosia, among other positions. He holds doctorate degrees in economics and management science and engineering from Stanford University.