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What Is an Airdrop in Crypto? A Complete 2026 Guide to Token Distributions | CryptoWire
A crypto airdrop is a token-distribution method in which a blockchain project transfers its native tokens to many wallet addresses at once, generally without charging recipients.
The term borrows from the idea of dropping supplies from the air: tokens land in qualifying wallets rather than being bought on an exchange.
Airdrops differ from initial coin offerings and public sales, where buyers pay for tokens.
Here, eligibility is usually earned through prior behavior using a protocol, holding a specific asset, providing liquidity, or voting in governance. The distribution is recorded on-chain, making it transparent and auditable.
How Does a Crypto Airdrop Work?
Most airdrops follow a repeatable sequence, though the details vary by project:
The project records the state of the blockchain at a fixed block height, capturing which addresses held assets or performed qualifying actions before a cutoff date.
Eligibility criteria. Rules define who qualifies for example, transaction count, volume traded, length of activity, or assets held.
Sybil filtering. Teams remove addresses suspected of gaming the system through many fake wallets, a practice known as sybil farming.
Distribution or claim. Tokens are either pushed directly to wallets or made claimable through a smart contract the user interacts with.
Retroactive airdrops, which reward past activity that users did not know would be compensated, have become the dominant format because they reward genuine early adopters rather than opportunistic farmers.
Read more: What Is Airdrop in Crypto? How Free Crypto Tokens Work
