Unchained

The Chopping Block: Points or Airdrops, Which Is the Better Engagement Model for Crypto Projects? - Ep. 603

Feb 3, 2024
Delve into the controversy surrounding the Jupiter airdrop and its impact on crypto valuations. The discussion navigates innovative pre-launch derivatives and the rise of airdrop farming. Our hosts debate the merits of points systems versus traditional airdrops as effective engagement tools. With insights on community communication and the implications of rebranding in the crypto landscape, this conversation unpacks the nuances of user expectations and trust within evolving engagement strategies.
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ANECDOTE

Pre-Launch Price Discovery

  • Jupiter, a Solana DEX aggregator, saw a price discovery phase before launch.
  • A project called Aevo listed futures for Jupiter, allowing for early price speculation.
INSIGHT

Airdrop Farmer Hedging

  • Airdrop farmers, who game airdrop systems for profit, are hedging their price risk using DeFi protocols.
  • This hedging activity has created new demand for protocols like Pendle, which allows trading of future yield.
INSIGHT

Points vs. Airdrops

  • Points systems, unlike traditional airdrops, give teams discretion over token distribution, allowing for iterative reward adjustments.
  • This flexibility can be both positive (allows for user behavior analysis) and negative (potential for rug pulls).
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