I was introduced to Miguelita last month in a local community center in the Bronx. A vibrant woman in her late 50s, she was excitedly telling everyone about this "crypto thing" her grandson introduced her to. He walked her through creating a wallet and how she could start earning free tokens. "Airdrops,” he dubbed them, and all she needed to do was tweet on a new social media company’s dime. To Miguelita, a retired seamstress, it offered her first glimmers of hope. She’d hoped it would help support her scant social security and support her family still living in Puerto Rico. Her face glowed with enthusiasm. She opened her wallet and showed me a screenshot of proof of this, a few dollars worth of the token she was having a hard time pronouncing.

Is it real? Is it really serving the needs of people like Miguelita? Or is it just another shiny distraction from economic inequality that reared its ugly head long before the pandemic? That’s the real question we should all be asking with any Web3 airdrop.

Unexpected Wealth or Fleeting Hope?

Airdrops sound amazing. Decentralized social network looking to engage new users on their platform? Bam! Give away some tokens. Reward early adopters? Boom! More tokens. Incentivize content creation? Pow! Sprinkle tokens on everyone! These days, the new crypto social media platforms Lens Protocol and DeSo are being lauded as the saviors of Web3 social. It's like Oprah, but for Web3: "You get tokens! And you get tokens! Everybody gets tokens!"

It reminds me of the state lottery. It preys on the desperation of the impoverished. It dangles the thin veneer of immediate riches as it fills the state coffers. Are airdrops the Web3 version of a lottery ticket, masquerading under the rhetoric of “democratization?”

  • Consider this: The vast majority of people who are heavily invested in crypto and Web3 already have significant capital. They are the "early adopters" who are best positioned to take advantage of these seemingly free handouts.
  • Meanwhile, Miguelita is navigating a world rife with jargon, scams, and rug pulls, hoping these few dollars will somehow blossom into something meaningful.

Let's talk about the elephant in the room: Sybil attacks. One individual can use hundreds, or even thousands, of fraudulent accounts to rack up airdropped tokens. It's rampant. And who suffers the most? The real victims, such as Miguelita, whose legitimate holdings are washed away by these nefarious agents.

Token Abuse And Superficial Engagement.

Platforms have implemented approaches to fight this back with vesting schedules and rewarding users based on activity. Unfortunately, these measures do an effective job of adding complications that frustrate and confuse newcomers. Picture Miguelita learning all the complicated details of a vesting schedule while trying not to be taken for a ride. It's a recipe for frustration and disillusionment.

These ideas are a good start. We need to apply them with superhuman precision in order to truly fulfill our goal of protecting our most vulnerable roadway users. Decentralization should not open the door to abandoning those who need the most help.

  • Vesting Schedules: Distributing tokens gradually to prevent immediate dumping.
  • Activity-Based Rewards: Incentivizing genuine engagement over passive participation.

Airdrops can attract users, sure. What kind of users? Are they truly motivated to help develop a youthful, distributed community like they say they want, or are they only in it for the airdrop free money? Will they stay engaged when the airdrops do not rain down sufficiently delicious free tokens anymore?

Genuine Community or Mercenary Users?

This reminds me of the "gig economy." Companies like Uber and DoorDash initially offered generous incentives to attract drivers and customers. Once their preferred company achieved a stranglehold over the market, they used their power to gut those incentives. Consequently, drivers suffered from underpayment and customers from overcharging.

Have we really escaped the iron grip of decentralized social networks? Or are we just training a new generation of mercenary user that goes platform-to-platform after the next airdrop like moths to the flame. If these users are only brought together by the ability for free money, we’re not building communities. Instead, we’re encouraging short-term, transactional connections.

Look, I’m not arguing that airdrops are bad by design. When used strategically, they can be a powerful tool to democratize access to Web3. But they need to be designed and implemented with a clear view of the many potential pitfalls. It’s not enough. A true commitment to inclusivity is critical.

  • The launch of a Solana Spot ETF signals a further professionalization and financialization of this space. While attracting institutional interest, it also risks further distancing Web3 from its original ideals of decentralization and empowerment.

A Call For Conscious Airdrops

We must not forget that Web3 is about so much more than money. Specifically, it’s about growing a more inclusive, equitable, and just world. Let’s ensure that airdrops remain a tool for empowerment, and not exploitation. Let’s make sure that Miguelita has a genuine chance to shape the future of the internet. If we work together, we can help everyone like her to take action!

So, get involved. Go engage with your friends, your family, your community. Demand more from the platforms you use. Join us to create a more inclusive, equitable, and representative Web3. The future is literally being decided as we speak, and everyone has an obligation to build a better one.

  1. Targeted Airdrops: Focus on communities that have been historically marginalized or underrepresented.
  2. Robust Anti-Sybil Measures: Invest in cutting-edge technology to detect and prevent Sybil attacks.
  3. Education and Support: Provide clear, accessible educational resources to help newcomers navigate the complexities of Web3.
  4. Community Governance: Empower users to participate in the design and implementation of airdrop strategies.
  5. Focus on Long-Term Value: Prioritize genuine engagement and community building over short-term financial incentives.

We need to remember that Web3 is not just about money. It's about building a more equitable and just world. Let's make sure that airdrops are a tool for empowerment, not exploitation. Let's make sure that Miguelita, and everyone like her, gets a real chance to participate in the future of the internet.

So, get involved. Talk to your friends, your family, your community. Demand more from the platforms you use. Advocate for a more inclusive and equitable Web3. The future is being built right now, and we all have a responsibility to shape it.