Stakedrop

Definition ∞ A Stakedrop is a method of distributing new cryptocurrency tokens where recipients must have staked a certain amount of another cryptocurrency. This mechanism incentivizes users to participate in staking activities while also facilitating the distribution of newly launched assets. Stakedrops aim to align token distribution with network participation and community engagement.
Context ∞ Stakedrops are a common distribution strategy in the cryptocurrency space, particularly for new projects seeking to bootstrap liquidity and decentralize token ownership. News reports often cover upcoming stakedrop events, the eligibility criteria for participation, and the potential returns for stakers. Discussions frequently involve the economic implications of stakedrops on the value of both the staked asset and the newly distributed token.