Common Airdrop Terminology

Airdrop Terminology

Airdrops are a widely used technique in the rapidly evolving cryptocurrency sector to distribute tokens to the community. For novices, however, understanding the terminology around airdrops can be intimidating. With the help of our comprehensive lexicon, we’ll demystify the vocabulary used in airdrops in this in-depth explanation. This glossary can help you grasp the important words and ideas related to airdrops, regardless of how experienced you are in the crypto sector.

Airdrop Terminologies


A promotional technique employed by cryptocurrency initiatives to provide complimentary tokens to a specific group of people. Airdrops can be used to raise awareness, reward current users, or fund the start of a new initiative.


A virtual currency that a cryptocurrency project issues. In a blockchain environment, tokens can stand for a variety of things, including ownership, voting rights, and utility.


A distributed ledger technology that is decentralized and allows transactions to be securely and impenetrably recorded across several computers.


An electronic device for sending, receiving, and storing cryptocurrency. Wallets can be found in different formats, such as web-based, software, and hardware.


One of the top blockchain platforms, renowned for its ability to implement smart contracts. The Ethereum blockchain is used for a lot of airdrops, using its ERC-20 or ERC-721 token standards.


An Ethereum blockchain technological standard for generating fungible tokens. Initial Coin Offerings (ICOs) and airdrops are two common uses for ERC-20 tokens.


On the Ethereum blockchain, non-fungible tokens (NFTs) are created using the ERC-721 technical standard. ERC-721 coins are indivisible and unique, in contrast to ERC-20 tokens.


The instant a cryptocurrency project takes a picture of the blockchain to ascertain the balances of token holders to distribute airdropped tokens.


A whitelist is a list of users or addresses that are qualified to take part in an airdrop. Users may be required by projects to achieve specified requirements or finish specific tasks to be added to a whitelist.


Know Your Customer, or KYC is a legal mandate that requires consumers taking part in airdrops or other cryptocurrency-related events to have their identities verified. Usually, KYC procedures require the submission of identity documents like driver’s licenses or passports.


The process of distributing tokens to qualified participants via airdrop. Tokens are usually given directly to participants’ wallet addresses, though distribution methods vary.


The process of verifying that one has participated in an airdrop and supplying the required data in order to obtain the tokens that have been airdropped. Filling out forms on a project’s website or signing transactions are examples of claim procedures.

Gas Fee

The cost of using a blockchain network to complete transactions; paid to miners or validators. When using smart contracts or retrieving airdropped tokens, participants could have to pay gas fees.

Smart Contract

Smart contracts are self-executing agreements where the terms are encoded directly into the code. Token distribution and verification are two of the many airdrop operations that smart contracts are used to automate.


In the context of airdrops, bounties are incentives given to people in exchange for their assistance in advancing or supporting a project. Tasks like content creation, software development, and social media sharing may be included in bounty programs.

Decentralized Autonomous Organization (DAO)

A Decentralized Autonomous Organization (DAO) is an open, member-controlled organization that is not subject to the authority of a central government. It is governed by rules encoded in a computer program. In airdrops, DAOs are occasionally utilized to provide decentralized governance and decision-making.


The cryptocurrency token’s economic model and method of distribution. Token supply, distribution schedule, inflation rate, utility, and governance are all included in tokenomics.


A website or software that offers tiny quantities of Bitcoin tokens without charge. In airdrops, faucets are occasionally utilized to reward user participation or disperse tokens to a large audience.

Vesting Period

The time frame in which recipients of airdropped tokens eventually have access to them. Vesting periods are a common tool for encouraging sustained involvement and preventing the sudden dump of tokens onto the market.

Community Engagement

Including enthusiasts and supporters in the creation and marketing of a cryptocurrency project. Airdrops are frequently utilized as a way to thank people for their participation and services in the community.


When two or more miners discover blocks at the same height at the same time, the blockchain network diverges. Forks have the potential to create new cryptocurrencies and can be classified as soft forks, which are backward-compatible, or hard forks, which are not.


A whitepaper is a technical document that offers comprehensive details about a cryptocurrency project, such as its goals, methods, tokenomics, personnel, schedule, and vision. Project founders frequently produce whitepapers in an effort to draw backers and investors.


A strategic plan that details the major checkpoints and goals of a cryptocurrency project over a given time frame. Roadmaps assist investors assess the project’s potential and development while offering openness and responsibility to project stakeholders.

Regulatory Compliance

The process of issuing and distributing cryptocurrency tokens under the law and regulations. To preserve credibility and confidence in the bitcoin market and stay out of trouble with the law, regulatory compliance is crucial.

Token Swapping

Token swapping is the act of trading one cryptocurrency token for another, usually one-to-one. Token swaps can take place when a project moves to a new blockchain or when airdropped tokens are distributed to current token holders.

Liquidity Pool

A decentralized exchange (DEX) liquidity pool is a collection of money that is secured in a smart contract and allows trading of various cryptocurrency tokens. For users to be able to trade easily and effectively, liquidity pools are essential.

Yield Farming

Yield farming is a method of making money by supplying liquidity to protocols for decentralized finance (DeFi) through lending, borrowing, and staking. Opportunities for yield farming could result from airdrops given to liquidity suppliers.

Token Burn

The purposeful and long-term elimination of a specific quantity of Bitcoin tokens from use. Burning tokens is a common way to lower the supply, make them more rare, and maybe raise their value.

Smart Contract Audit

An impartial examination of a smart contract’s operation and code to find any flaws or security threats is known as a “smart contract audit.” Audits of smart contracts are a useful tool for ensuring the security and integrity of cryptocurrency projects, especially those that offer airdrops.

Proof of Participation (PoP)

A system for confirming and compensating users for taking part in airdrops and other cryptocurrency-related events. PoP can entail carrying out particular duties, such as posting links for recommendations, participating in community conversations, or helping with project development.

Privacy Coin

A kind of cryptocurrency made to give users’ transactions more anonymity and privacy. Advanced encryption algorithms are used by privacy coins to conceal transaction details and safeguard user identities.

Market Volatility

The degree of price fluctuation witnessed in the bitcoin market. The value of tokens that are airdropped and the potential gains or losses for participants can both be impacted by market volatility.


A cryptocurrency network’s capacity to manage rising transaction volumes and meet expanding user demand without stuttering or encountering delays. For airdrop distributions to run smoothly and effectively, scalability is essential.

Tokenomics Analysis

A comprehensive evaluation of the long-term viability, inflation rate, utility, and distribution mechanism of a cryptocurrency project. Investors can assess the airdropped coins’ prospective growth prospects and economic viability with the use of tokenomics analysis.

Disclaimer: We are not financial advisors. The airdrop content on this page is for educational purposes only and merely cites personal opinions. While we strive to provide quality airdrops, we advise you to conduct your research and make smart decisions.
This post does not serve as an endorsement or reason to invest in a project. Finally, there is no guarantee that you will be making a profit or loss from this project and we'll not be liable for any loss.