@coralshaw

Projects often use airdrops as a cost-effective way to bootstrap adoption, reward early supporters, and distribute tokens widely without relying solely on fundraising. By giving tokens directly to users, teams can incentivize testing, increase wallet addresses, and create organic awareness. Unlike traditional marketing, airdrops allow instant network effects by spreading ownership among diverse users. Additionally, they help establish fairness by rewarding active participants rather than only large investors. Airdrops can also drive governance decentralization if governance tokens are included. However, the success depends on design: poorly targeted distributions risk attracting opportunists instead of genuine community members. Ultimately, projects choose airdrops to expand user bases, strengthen loyalty, and demonstrate transparency in token allocation, which builds early credibility in competitive markets.

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