Perspective by: Paul Delio, chief business officer at CARV
Market fluctuations frequently dominate discussions, but something more noteworthy has been occurring beneath the surface in recent cycles. The last few years have been notably favorable for new tokens, and their introduction has opened significant avenues for wealth creation, such as through airdrops.
I recently had a conversation with Yat Siu, co-founder and executive chairman of Animoca Brands, at Consensus Hong Kong. He shared a staggering statistic that immediately alleviated any market-related anxiety: from 2021 to 2024, $49 billion worth of airdrops were distributed to Web3 communities. “I can’t think of a larger private wealth generation event than that,” Siu remarked.
He’s absolutely right. Airdrops allow users to get in on the ground floor and reward them for their early support in ways that traditional markets fail to do. This unique mechanism enables us all to participate in one of the most significant wealth redistributions witnessed in recent history.
Despite the current prevailing sentiment that might cause hesitation, there is still considerable user and network value being built quietly in the background. Bear markets are temporary, but airdrops — along with the ownership and community models they promote in crypto — are here to stay.
Airdrops redefine ownership
Airdrops represent much more than just free tokens; they symbolize a reimagined relationship between platforms and users. The value they confer to protocols extends far beyond mere pricing.
In the conventional tech landscape, users have unfortunately grown accustomed to generating value without receiving anything in return.
This has become the business model of many leading companies today: profiting off user information, extracting its value, and selling it to the highest bidder. When users lack ownership of their data, technology firms exploit it for profit and influence.
Airdrops challenge this established norm. This model values participation with ownership stakes and tangible benefits. If you engage with a project, airdrops suggest that you deserve a stake in it. Passive users can transform into active stakeholders, championing the ecosystem and elevating it to new heights.
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For once, those lacking data and decision-making power are in control. Airdrops, whether from layer 2s providing governance tokens to early users or projects compensating backers, are rewriting the ownership playbook and fostering enduring bonds between protocols and users. This ownership cultivates engagement that often remains strong, irrespective of market fluctuations.
Airdrops foster ecosystems
Community is vital to the success of projects in the Web3 space. As Siu highlighted, network effects are among the most valuable assets in digital economies. Airdrops have become foundational in crypto precisely because they help to establish these effects.
Airdrops empower those who have invested in the project and incubate countless microeconomies. Value circulates among participants rather than being siphoned off by centralized entities, creating a self-reinforcing cycle of innovation. Token holders evolve into advocates, developers, contributors, and builders — guiding projects toward sustainability amid both market booms and downturns.
Some individuals attempt to exploit airdrops, while others are driven solely by profit. Teams are actively working to filter out bad actors and prioritize authentic supporters. Nonetheless, the beneficial cycles created by airdrops appear to be profoundly transformative. Moreover, as evidenced by Axie Infinity’s success in the Philippines, they effectively onboard new crypto audiences.
Airdrops provide lasting value
Web3 aims to engage active users who interact with protocols and derive benefits from them. If we thrive, then you thrive. This principle embodies the spirit of crypto. It’s also evident in node sales that reward network decentralization and AI agents that track blockchain data, compensating users for their training contributions.
These initiatives uncover value for users and networks, regardless of market conditions. While there is undoubtedly financial potential, the availability of governance rights, a sense of community, and true investment also plays a significant role. When markets recover, users will already be positioned for the journey, reaping the benefits of their loyalty.
What’s the best advice during these turbulent times? Focus on the value that airdrops offer rather than solely on market shifts. $49 billion is a considerable figure, as are the genuine and enduring connections and communities that have been established.
Perspective by: Paul Delio, chief business officer at CARV.
This article serves as general information and is not intended to be, nor should it be interpreted as, legal or investment advice. The views, thoughts, and opinions expressed herein are solely those of the author and do not necessarily reflect or represent the views and opinions of any particular entity.