The Crypto Community Anticipates Solana Airdrops
The crypto community is gearing up for several upcoming airdrops, presenting promising opportunities for Solana users. The surge in value within the nascent industry correlates with the rise of decentralized finance (DeFi) protocols in 2021 during the early stages of the crypto bull run.
Solana Ecosystem: Jupiter’s Airdrop Strategy
The Solana ecosystem has garnered attention owing to the rally in its native token, SOL, and the increased activity. Notably, the Jupiter crypto exchange is set to launch its native token, JUP, through a highly anticipated airdrop.
According to a post shared by one of its lead developers, Jupiter aims to distribute 10 billion JUP tokens among its user base. The team emphasizes a “transparent” and “fair” approach, striving to enhance engagement with their user base.
The allocation process takes into account various factors, including past usage and trade volume. The focus is on the 955,000 wallets that interacted with Jupiter before November 2nd, with plans for future rounds to include new users.
The developer highlighted that this approach underscores Jupiter’s intent to engage both long-standing and recent users, fostering further growth on the platform. The developer stated:
First round allocations will be up next week but tokens will not be live yet. There are several phases to the token launch, which we covered in the breakpoint talk and we will share more later on.
Jupiter’s method involves even distribution, tier-based scoring, and special community contributions considerations. The initial distribution plan entails allocating 200 million tokens, around 200 tokens per account, “evenly” among all users, ensuring every participant feels “valued.”
However, the majority of the airdrop is based on a tiered system that factors in trading volume, with significant multipliers for recent activity and adjustments for arbitrage volume. The developer claims they failed to record an “uptick” in the number of addresses interacting with the platform since the airdrop was announced.
Therefore, the team concluded that they avoided getting “spammed” by airdrop “farmers,” users looking to profit in the short term by becoming eligible for the airdrop.
Jupiter’s Airdrop Strategy and Community Building
The crypto exchange’s current airdrop strategy aims to recognize diverse engagement levels among users, from those who traded significantly to active community members on platforms like Discord and X (formerly Twitter).
The goal is to create a balanced system reflecting varying levels of involvement within the Jupiter network. The airdrop distribution is intended to follow this plan:
- Even distribution for all wallets (2%).
- Tiered score based distribution, with the score based on adjusted volume (7%).
- Community members on Discord, Twitter, developers (1%).
The breakdown is designed to reward power users and contributors significantly more while providing everyone else a reason to come back and engage.
Power Laws and Community Building
Jupiter faces the challenge of managing the ‘power law’ distribution of trading volume, where a small percentage of wallets accounts for a significant portion. Addressing this, Jupiter’s tiered system aims to ensure tokens are distributed in a way that rewards power users and remains meaningful for the broader community.
In the spirit of transparency and community involvement, Jupiter is reopening its airdrop discussion channel on Discord for final debates on the allocation details. With a dedicated site launching next week for users to check their allocations, Jupiter is making strides in advancing its token launch and fostering a sense of inclusivity and fairness in its community-driven approach.
As of this writing, SOL trades at $55 with an 11% correction over the last 24 hours.