Problems

In the web3 landscape, the decentralized marketing has taken a front seat, introducing innovative strategies to engage and expand user bases. Among these strategies, airdrops have become a prevalent method to attract new users by distributing free tokens, which ideally incentivize participation and investment in the platform. However, while airdrops have shown promising results in terms of initial engagement, there's a growing concern that needs immediate attention, the actual impact on long-term growth and user retention as highlighted below

Attracting Users vs Educating Users

Airdrops are designed to do one thing effectively: Attract Users.

By offering free tokens, projects can quickly ramp up their user numbers, often seen as a direct metric of their success and potential for growth. However, this approach has a fundamental flaw. The users attracted through such campaigns often lack a basic understanding of crypto mechanics and the underlying value of the tokens received. Without this knowledge, the new entrants are more likely to view the airdropped tokens merely as freebies to be sold at the first opportunity, rather than as a stake in a potentially valuable ecosystem

Conversion and Engagement

The primary goal of any marketing effort is not just to attract eyeballs but to convert these opportunities into engaged, returning users who add value to the ecosystem. Unfortunately, airdrops in their current form often fail to achieve this. Once the initial excitement of the "free token" giveaway settles, many users disengage, having neither loyalty to the platform nor interest in its long-term success. This behavior results in projects boasting high initial numbers but experiencing stagnant growth or active user engagement.

Long-Term Impact on Projects

From a project's perspective, the aftermath of an unsuccessful airdrop can be detrimental. What begins as a strategy to boost numbers can end up inflating them with little to no return on investment. Projects are left grappling with the challenge of converting what are essentially "Tourist" users those who visit but have no intention of staying, into actual community members.