Definition ∞ Airdrop events are distributions of digital tokens or cryptocurrency assets to a wide audience of wallet holders. These distributions are typically performed by new or existing blockchain projects to incentivize adoption, reward community members, or promote a token. They function as a marketing and distribution mechanism within the decentralized digital asset ecosystem.
Context ∞ Discussions surrounding airdrop events frequently center on their potential to dilute existing token value, their use as a tool for decentralized governance participation, and the regulatory scrutiny they may attract. Observers watch for patterns in airdrop allocation and their impact on token velocity and holder distribution.
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