Making the most of airdrops entails measuring key metrics before, during, and after the campaigns to ensure the desired effects are achieved.
There is more to creating an airdrop campaign than most companies realize. Airdrops go beyond sharing free tokens with new users and getting word out for new crypto projects. They extend to aligning company goals with airdrop strategies and reaching a larger audience to keep them interested in a project.
Thesis-driven crypto venture capital fund Node Capital has shared a press release with CryptoPotato outlining strategies companies can use to maximize their airdrop campaigns.
Strategies for Effective Airdrops
Node clarified that airdrops are not risk-free promotions. While they may be great for fast wallet growth, they can be expensive and bring little long-term results if not done properly. The firm added that airdrops require clear goals and at least a 10% commitment of token supply to have a significant impact. Airdrops may attract users, but they would need strong reasons to stay and participate in new projects.
One major practice for making the most of airdrop is measuring key metrics before, during, and after the campaigns to ensure they saw the desired effect. Node said projects must complete their “homework” before launching campaigns.
“The airdrop must be set up in a way that matters not only to the current community, but to any new audiences the platform wants to reach. The airdrop must fit into a platform’s tokenomics instead of being an afterthought, and the right communication strategy must be used to reach the target audiences,” Node said.
Goals like user expansion, measuring wallet activity, user testing and quality assurance performance, converting potential token holders into active participants, and driving decentralized autonomous organization (DAO) participation must be considered. Each goal requires a different approach for launching an airdrop.
Node Unveils Airdrop Assist Tool
To help projects handle their airdrops properly, Node Capital has unveiled the Airdrop Assist Tool alongside a guide on measuring a campaign’s progress and effectiveness. The tool will handle complex airdrop aspects like auditing smart contracts, filtering out bad actors, sybil attacks, and participants who do not meet the campaign’s goals.
Node Capital’s Token Engineering analyst, Or Harel, said: “This tool offers both analytical insights and visualizations, serving as an iterative planning tool for airdrops. It’s about real solutions, not just concepts, empowering the crypto community to use, refine, and enhance it repeatedly.”
The crypto fund intends to make the airdrop tool open source with time.