What is Airdrop Farming? How to Farm Airdrops in 2024
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Airdrops refer to the distribution of tokens to qualified wallet addresses. But what is crypto airdrop farming, and how does it work? In this guide, we’ll explain how to start airdrop farming, including some of the risks (like disqualification).
Farming with one wallet address is fair and helps decentralize token distribution. The debate centers on using multiple wallet addresses to qualify for additional tokens. However, you can farm with just one wallet instead by using multiple protocols to qualify for a variety of airdrops.
Before we learn how to farm airdrops, let’s discuss the topic of farming for airdrops in more detail.
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What is Airdrop Farming?
When a crypto project wants to decentralize or create awareness, the team often uses airdrops to distribute tokens to the community fairly. Much like the name suggests, airdrops can seem like money falling from the sky. However, to qualify, you may need to take some additional steps.
Airdrop farming refers to taking the necessary steps to qualify for airdrop tokens. Often, this involves bridging assets to a different blockchain and interacting with various protocols on that blockchain. Each qualifying act could increase the token distribution for a specific crypto wallet address.
Using the activity of individual wallet addresses invites the possibility of one person or group using multiple wallet addresses to qualify for crypto airdrops on each address. This part divides communities, with most playing fairly and some double, triple, or quadruple-dipping to qualify for more tokens. Some describe this tactic as a Sybil attack, an attempt to gain control of a protocol using multiple identities. However, the intent is usually less nefarious and could be better described as greed.
Many protocols now use sophisticated monitoring and advanced detection methods to examine the relationship between wallet addresses and may disqualify wallet addresses identified as farming with multiple wallets. To be safe (and fair), farming using one wallet address rather than several is wiser. This airdrop farming strategy gives others an equal opportunity and helps to ensure the decentralized distribution of crypto assets.
How to Farm Airdrops: The Most Successful Ways
In most cases, the actions you’ll need to take to qualify for airdrop tokens are unknown until after the snapshot is taken. Projects choose an unspecified time and use wallet activity within those dates and times to document which wallets engaged in which qualifying activities.
This strategy is intended to keep distribution fair. Only the team knows the details beforehand and can change the criteria anytime before the details are announced. However, many airdrops follow a similar pattern when qualifying wallet addresses. Because multiple airdrops follow the same pattern, aspiring farmers can perform certain transactions with better-than-average odds that at least some of these actions qualify for future airdrops or increase the amount.
For example, if the expected airdrop is for a new blockchain, bridging assets to that chain is often a first step in qualifying for an airdrop. Arbitrum used bridging to Arbitrum as criteria in the ARB airdrop that went to more than 270,000 wallet addresses.
Like many other airdrops, Arbitrum also used a points system to determine the amount of tokens each qualifying wallet would receive.
Other common qualifying activities include staking, making swaps, or providing liquidity. However, it’s impossible to know if any of these will result in airdrop farming success. You’re making an educated guess based on what past airdrops for other protocols have considered. Bridging probably won’t be enough. Most projects consider several types of activity when allocating airdrop tokens, often rewarding more active wallet addresses with more tokens.
Interact With New Protocols
The underlying theme is to get busy interacting with the chain or application. If you’re farming an airdrop on a specific chain, look for the top decentralized apps (dApps) on that chain. Sites like DeFiLlama can help you identify the leading apps. Then, interact with the leading apps. Stake, swap, or provide liquidity.
However, if you’re farming a potential airdrop for a specific dApp, you need to concentrate on the activities available for that app. For example, the BLUR airdrop considers activity on the Blur NFT marketplace. Other on-chain activities don’t impact your airdrop amount.
By contrast, the ZKsync airdrop used a points system based on several activities on the ZKsync chain, including trading and interacting with 10 smart contracts. The ZKsync airdrop was estimated to be worth nearly $800 million.
Look for opportunities to interact with the specific app or chain, as applicable. Below are some of the most common methods of farming airdrops.
Top Ways to Earn Airdrops
- Staking: Crypto staking can have two meanings. For example, you can stake ETH to earn crypto passive income by helping to secure the network. However, many dApps also offer ways to stake your tokens (lock them in a smart contract) to earn a yield. The EIGEN airdrop for EigenLayer targets stakers.
- Swaps: You can also swap tokens on a decentralized exchange to qualify for airdrops. ZKsync used this measurement in its June 2024 airdrop.
- Providing Liquidity: You can provide liquidity in two primary ways. First, you can provide tokens to a liquidity pool on a decentralized exchange. The Degen chain uses this, amongst other criteria, to determine airdrop amounts. Another method of providing liquidity centers on lending markets. Look for the leading crypto lending protocols and consider providing liquidity.
- Voting on Governance: Voting with governance tokens could be a qualifying action for secondary airdrops. You might also qualify for an airdrop in a secondary project by voting on proposals for a project you own. For example, Neutron airdropped 70 million NTRN tokens to ATOM stakers and wallet addresses that voted on Prop 72.
- Bridging: If you’re airdrop farming on a new chain, the first step is often to use a crypto bridge to bridge tokens to the new chain. Both Arbitrum and ZKsync used this criterion. Sometimes, airdrops require you to bridge a certain amount to the new chain as well.
Maintain On-Chain Activity
Like real-world farming, airdrop farming can require a lot of effort over an extended period. The Arbitrum airdrop used 2-month, 6-month, and 9-month qualifying periods, with longer durations of on-chain activity earning more points (and thereby more airdrop tokens). ZKsync used a similar strategy for users of the ZKsync Lite chain, basing the eligibility for those airdrop wallets on transactions in three separate months prior to ZKsync Era’s launch. This might be the case with airdrops in the future, like the potential Berachain airdrop.
Stake Crypto on Different Blockchains
Staking crypto is a great way to earn passive income, but it’s also a great way to get your wallet address on an airdrop list. Projects that want to decentralize or increase awareness often target wallets that are staking tokens. Keep an eye out for new tokens arriving in your wallet. In some cases, you might qualify for an airdrop simply by holding tokens, although projects often target wallets used for staking.
For example, the Osmosis project airdropped 50 million OSMO tokens to ATOM stakers. Similarly, the BONK token airdrop on Solana focused on wallets with a history of holding or staking SOL and transaction history. In total, 50% of the token supply went to the community. BONK now has a fully diluted market cap of more than $2 billion.
Warning: Avoid Being Flagged as a ‘Sybil Attack’
The allure of a big payday can make it tempting to farm on multiple wallets. A $400 airdrop could easily become $800 if you duplicate the same actions on two wallets. However, the blockchain holds no secrets, and finding related wallets is a trivial task, given the right tools.
Many crypto teams now use advanced detection to find “Sybil” wallets that belong to one person or group. Funds transferred between wallets are easy to identify and could lead to disqualification for multiple wallets.
Being flagged as a Sybil attack can be costly in two ways. First, you could lose the opportunity to earn an airdrop on any of the wallet addresses used. Secondly, remember that interacting with new chains and protocols comes with a cost. You’ll pay gas fees to interact with smart contracts and to bridge funds if you’re farming a new blockchain. You won’t recoup these costs if your wallets are flagged and disqualified.
Is Crypto Airdrop Farming Worth It?
Crypto airdrop farming can be a very effective method of receiving potentially substantial amounts of cryptocurrency without having to make any initial investment other than interacting with a project — which you might do anyway.
For major protocols that are yet to release a token, airdrop farming can be particularly worthwhile. These projects often have substantial backing and a large user base, which can translate into more significant rewards when they finally distribute their tokens. By being an early and active participant, you can position yourself to benefit from any upcoming airdrops.
Airdrop farming can be more profitable on low-cost blockchains or Layer 2 (L2) solutions. These platforms offer much lower transaction fees compared to the Ethereum mainnet, for example, where high gas fees can significantly reduce the profitability of airdrop farming. On low-cost blockchains or L2s, you can interact with various protocols and complete the necessary actions to qualify for airdrops without incurring prohibitive costs.
Conclusion
Airdrop farming refers to taking specific actions on a new blockchain or dApp to earn free tokens for the chain or decentralized app. While the specific actions required to qualify typically aren’t revealed beforehand, many airdrops follow a similar pattern, using bridging, staking, swaps, or similar transactions to determine eligibility. With this in mind, you can begin farming with a roadmap, knowing what is more likely to be used to determine eligibility and the amount of tokens.
While it may be tempting to double up on profits by using two or more wallets, many protocols now use detection techniques to disqualify multiple wallets that belong to one person. To be safe (and fair), focus your efforts on one wallet to reduce the risk of paying transaction fees with no airdrop rewards.
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Visit Best WalletFAQs
What does airdrop farming mean?
Airdrop farming refers to taking specific actions to earn crypto tokens, such as bridging, staking, or making swaps. Airdrops are used to decentralize protocols and incentivize users.
Is airdrop farming risky?
The primary risks surrounding airdrops center on the expense of on-chain interactions and the risk of scams. Expect to see several fraudulent airdrop claim pages in the wake of any high-profile airdrop announcement. Typically, these are malicious apps or another type of scam. Always look for the official links from the project page.
Can you get random airdrops?
Yes. Some projects airdrop to stakers or wallets holding a specific cryptocurrency token. However, these airdrops can also be scams, so remain vigilant.
Can you be punished for airdrop farming?
Typically, the only risk of penalty when airdrop farming comes from using multiple wallets. Tracking techniques can track this behavior and may disqualify all the wallet addresses identified as being owned by one person.
How much can you earn from crypto airdrops?
How much you can earn depends on the airdrop and the amount of activity required. Find a project or chain that is expected to have an airdrop. Then, engage with the chain or project. Airdrops typically follow a similar pattern when determining eligibility. Helpful activities might include bridging tokens, staking, making swaps, providing liquidity, or even voting on proposals. These can often boost the amount of crypto assets you earn
References
- ZKsync Airdrop of ‘ZK’ Token Puts Initial Market Cap Near $800M (finance.yahoo.com)
- Eigen Foundation Announces EIGEN Airdrop for Ethereum Restaking Protocol EigenLayer (finance.yahoo.com)
- Perpetual Trading Protocol GMX Bags Biggest Chunk of $40M Arbitrum Grant (finance.yahoo.com)
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