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Glossary entry

Airdrop

Fundamentals

An airdrop distributes tokens to wallet addresses without a purchase. How snapshots and sybil filters work, plus the scam and tax risks to know.

Definition

An airdrop is a distribution of tokens to a set of wallet addresses without a direct purchase, usually to bootstrap a user base, reward past activity or spread governance rights more widely. Eligibility is normally decided from on-chain history at a snapshot block, and the claim itself is a transaction the recipient signs. Airdrops attract sybil farming, so projects increasingly filter out addresses that look like one person operating many wallets. Two practical cautions matter: unsolicited tokens that appear in a wallet can be bait for a scam contract, and claim pages are a common phishing target, so the contract address should be verified independently. Many jurisdictions also treat a received airdrop as a taxable event at its value on receipt.

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