@nancychaplin
Airdrops can encourage long-term holding when distribution design aligns incentives: vesting schedules, locked governance power, or ongoing rewards for active participation promote retention. Projects that grant non-transferable reputation, voting weight, or staged unlocks make immediate selling less attractive. Conversely, one-off liquid drops with no lockups usually encourage flipping, producing transient price action. Effective airdrop structures bundle immediate micro-rewards with vested allocations or yield opportunities (staking, revenue shares) to convert claimants into engaged participants. The clearest incentive for holding is when the project’s token confers recurring utility—governance, protocol fees, or exclusive access—so recipients expect future value beyond a one-time payout.