Crypto airdrops: An evolutionary approach

Airdrops are a mechanism by which blockchain-based projects distribute digital tokens to users at zero cost. Billions of dollars of tokens have been airdropped for reasons such as marketing and decentralisation. The distribution criteria that projects have designed (e.g. previous user activity on the platform) have become more complex as different types of users adapt to receive a larger airdrop. This paper argues that coevolutionary theory can help us to understand the unique phenomenon of airdrop design, where participants (projects and users) strategically adapt over time and across different blockchain ecosystems. Nine airdrop case studies show an expanding set of innovative airdrop strategies (e.g. airdrops requiring additional activities to claim). The evolutionary analysis also implies changes in airdrop design (e.g. multi-round airdrops to facilitate learning) and further strategic innovation. Ultimately, this paper offers a new platform to apply the tools of evolutionary economics, exploring a unique process of innovation and evolution.