TL;DR
Crypto airdrops have evolved from simple free distribution of tokens to complex marketing strategies, but they still face many challenges in terms of anti-Sybil attacks and scalability.
Sign Protocol is the "notary office" of the digital world, which can create verifiable cross-chain digital certificates and on-chain labels for users, thereby accurately locating real community members.
As a member of the Sign Protocol ecosystem, TokenTable can provide customized token management and distribution on multiple chains, implementing various token distribution access mechanisms (KYC, NFT, token/certificate proof) and flexible representative release mechanisms.
Sign Protocol and TokenTable are committed to enabling more efficient token airdrops that maximize the number of real token holders at token launch and foster long-term community loyalty and adoption.
There will be more airdrops in the future to guide community building, which will convert millions of outsiders into token holders. Sign Protocol and TokenTable are the key catalysts to promote this transformation.
In addition to airdrops, Sign Protocol has broader applications in digital identity, reputation systems, and decentralized communities, and is likely to become a bridge between the Web3 and Web2 ecosystems.
Airdrop Development Track
1. Background
Airdrops have come a long way since the inception of cryptocurrencies. Initially, airdrops were simply free distributions of tokens designed to create awareness and widely disperse the tokens. As cryptocurrencies gain mainstream attention, airdrops have become the go-to marketing strategy for new projects to quickly build user communities. Especially since the success of the Uniswap airdrop, the popularity of airdrops has exploded. The token airdrops of dYdX, ENS, Jito, Arbitrum and other projects have greatly rewarded early participants and produced significant wealth effects, thus attracting widespread attention and discussion in the crypto community.
In the past few years, the user scope of airdrops has also greatly expanded, far beyond the boundaries of the crypto community. Once a niche social practice for blockchain believers, airdrops have now evolved into a hot event that can be participated by users around the world, attracting the attention of millions of potential participants. Airdrops from projects such as $GRASS and $DOGS, which allow users to earn income by renting idle bandwidth or attention, have successfully attracted the interest and participation of millions of users. As of now, airdrops are driving the mass adoption of cryptocurrencies through widespread token distribution, becoming an important bridge between the crypto ecosystem and mainstream audiences.
2. Current status and future challenges
As airdrops become more popular, airdrop farming has also emerged. Some projects have begun to implement more complex airdrop strategies, including retroactive airdrops, participation-based airdrops, and multi-stage airdrops, to combat opportunistic behavior and screen out airdrop witches.
However, the current airdrop strategy seems to be insufficient. There are still several unresolved challenges in the airdrop mechanism, which hinder the development and popularization of airdrops:
3. Sybil Attack
"Airdrop mining" exploits system loopholes to speculate on airdrop expectations. Airdrop witches dilute the real community's airdrop share, and worse, they create huge selling pressure in the Token Genesis Event (TGE).
3. Scalability Issues
Some projects’ airdrops have attracted hundreds of thousands or even millions of participants. However, due to the lack of a one-stop airdrop management tool, it is difficult for project owners to distribute tokens efficiently and at low cost.
4. Community quality issues
Many airdrop participants are short-term speculators rather than true community members who prioritize quick profits over true community engagement.
5. Regulatory issues
As airdrops gain more attention, they face more regulatory compliance issues. Projects may need to implement effective Know Your Customer (KYC) processes to mitigate potential regulatory risks.
6. Focus on Sybil Attacks
Among the many challenges mentioned above, Sybil attacks have become the biggest hidden danger in the airdrop field. When a Sybil attack occurs, malicious actors create a large number of fake accounts or robots to grab a higher proportion of airdrop tokens. These attackers not only manipulate the token distribution system, but also greatly dilute the airdrop value of real users, undermining the purpose of fair and broad token airdrops.
Sybil attacks are alarmingly common and have already resulted in huge losses.
Two recent famous airdrop cases illustrate this point well:
Celestia Airdrop
Celestia's $TIA airdrop fell victim to a massive Sybil attack. Malicious actors stole over 55% of the airdropped tokens. These attackers used at least 106,491 clone wallets to transfer a staggering 28.92 million $TIA tokens. At the peak of $TIA's price, these airdropped tokens were worth over $500 million.
Arbitrum Airdrop
The Arbitrum airdrop faced a similar fate. Approximately 150,000 Sybil addresses and groups received over 253 million $ARB tokens - 21.8% of the total airdrop.
These cases highlight the urgency of improving the airdrop mechanism. As the crypto ecosystem develops, preventing such attacks is not only a technical challenge, but also a key factor in maintaining trust, fairness and long-term development between cryptocurrencies and the community.
Vitalik’s revelation: How to plan a better airdrop
In a recent Twitter post, Vitalik Buterin laid out the challenges of designing more effective airdrops. As Vitalik observed, an ideal airdrop should reward true community members, recognize substantial community contributions, maintain a level of fairness, and resist Sybil exploitation. These airdrop goals align perfectly with the vision of “blockchain-based identity, credential, and attestation frameworks.”
"Blockchain-based identity, credentials and authentication frameworks" represent a new way to manage digital identities and verify claims in the digital world. Among them, attestation frameworks play a key role in digital authentication systems. Attestation frameworks allow third parties to attest to specific claims about an identity, thereby establishing a large network of trust. For example, a university can attest to a student's degree, an employer can attest to a worker's skills, or a government can attest to a citizen's residency status. The immutability and transparency of blockchain ensure that blockchain-based authentication is tamper-proof and easily verifiable.
More importantly, the authentication framework gives users fine-grained control over their information, allowing users to selectively disclose verified information without revealing unnecessary personal data. This feature is particularly valuable in scenarios such as token airdrops, where projects can use authentication to verify user airdrop qualifications without violating user privacy. The authentication framework works in conjunction with identity and credential systems to build trust and reputation in a decentralized and secure manner. This combination brings enhanced privacy protection, improved security, and a simplified verification process to the digital realm.
Sign Protocol and TokenTable debut
So the question is: how can we use the blockchain authentication framework to design better airdrops? Let’s take a look at Sign Protocol, an authentication protocol that implements standardized interoperable credentials and on-chain tags.
1.Sign Protocol
Sign Protocol is a full-chain authentication system designed to create and verify digital claims for multiple blockchain networks. At its core, Sign Protocol enables verification and accessibility of blockchain authentication.
To understand Sign Protocol, think of it as a digital notary for the internet age. Just as a notary in the real world verifies and stamps important documents, Sign Protocol does something similar in the digital world, but Sign Protocol is adapted to handle notarization of all kinds of digital statements and information. Essentially, Sign Protocol uses cryptography (think of it as an unbreakable digital code) to create super-secure digital signatures: These aren't just images of a signature - they're mathematical proofs that are nearly impossible to forge.
Through these digital signatures, Sign Protocol can turn claims into facts. Let's say you want to prove that you've been a regular customer at a certain coffee shop for five years. Rather than just making a verbal statement, Sign Protocol allows the coffee shop to "prove" your loyalty digitally. Now you have a verifiable "coffee expert" digital badge!
One of the coolest features of Sign Protocol is that it is designed to work across different blockchains and even off-chain. It's like having a universal passport that can prove digital identity and achievements. This versatility unlocks a variety of application scenarios. For example, users can get ENS badges on Ethereum as proof of being an early adopter of ENS domain names. At the same time, they can get onchain summer badges on Base as proof of active participants. In addition, participants in TON Society offline gatherings can also receive a Soul Bound Token (SBT) as a digital record of their actual interaction with the community. These diverse badges and SBTs can serve as ideal digital proofs for generating various on-chain labels to build comprehensive digital identities and user portraits.
2.TokenTable
Based on digital proof, Sign Protocol has developed a whole ecosystem of applications, one of which is TokenTable, which is one of the most popular tools in the Sign Protocol suite.
In short, TokenTable is like the Swiss Army Knife of token management, providing a range of tools to efficiently and transparently manage and distribute tokens. Through a customizable claiming interface, TokenTable enables precise, transparent, and automated token distribution on multiple chains. The platform also gives project owners the ability to precisely customize airdrops by integrating specific parameters such as lock-up periods and vesting schedules.
It is worth noting that with the support of Sign Protocol, TokenTable allows multiple access mechanisms, including:
KYC Access: Ensure that only KYC-verified users can claim tokens, just like showing your ID card at an exclusive club.
NFT Access: Allows specific NFT holders to claim tokens, similar to a VIP pass for token access.
Token/Proof Access: Control access based on holding certain tokens or having specific credentials.
To date, TokenTable has supported over 15 blockchains, ranging from EVM-compatible blockchains to Solana and TON networks. TokenTable has distributed over $807 million worth of tokens to over 33.5 million addresses. This user base is 50x and 25x the total number of $ARB and $STRK airdrop addresses, respectively. In a recent milestone token airdrop, TokenTable facilitated the distribution of $DOGS tokens to over 42 million eligible Telegram users, setting a record for the largest airdrop in cryptocurrency history.
Airdrop Reimagined: Sign Protocol + TokenTable Practice
The powerful combination of Sign Protocol and TokenTable is expected to revolutionize the traditional airdrop method. This innovative combination builds a comprehensive solution that directly addresses the core pain points that token airdrops have long faced.
Sign Protocol acts like a digital notary office to verify user identities and achievements. It mitigates Sybil attacks, locates real community members, and even implements KYC for identity verification and regulatory compliance when necessary by creating tamper-proof on-chain tags - such as certified digital badges for KYC verification, proof of community participation, and verification of specific skills or contributions. Meanwhile, TokenTable uses proofs to determine who can get what in an airdrop. It's like a vending machine that only distributes tokens to those with the right "digital key."
By combining the powerful verification capabilities of Sign Protocol and the flexible distribution capabilities of TokenTable, project owners can create more secure and efficient, more attractive and fair airdrops. This synergy encourages real community building and rewards real supporters, creating a more valuable and sustainable token ecosystem.
Imagine a scenario where a decentralized finance (DeFi) platform on the TON network wants to use airdrops to reward early adopters and guide community building. Using Sign Protocol and TokenTable, they can:
Verify users’ past interactions with their smart contracts, community projects, and meetups
Adopt KYC/NFT/token access mechanism to filter Sybils and verify the authenticity or loyalty of users
Allocate and distribute tokens on Telegram based on engagement or Telegram account age, and set up custom vesting plans
The combination of Sign Protocol and TokenTable opens up a wealth of innovative strategies for effective airdrops. Fine-grained control over airdrop eligibility criteria sets a new standard for projects on how to align token distribution with long-term ecosystem growth. Crucially, it maximizes the number of real token holders at token launch, transforming individuals from diverse backgrounds into active stakeholders in the community.
This large-scale airdrop distribution method may become a powerful catalyst for the mass adoption of cryptocurrency. By maximizing the distribution of tokens to community users, projects can quickly build a diverse and highly engaged community group, where every user in the community has a vested interest in the success of the project. As more and more projects adopt this forward-looking airdrop strategy in the future, we expect an emerging narrative to emerge: a token economy characterized by large-scale participation, value-driven participation, and community-centric development.
Beyond Airdrops: New Application Scenarios
The applications of Sign Protocol and TokenTable are not limited to airdrops. Looking at the broader digital future, these two innovations are expected to unlock more vivid real-world use cases.
This combination of "web3 magic" is expected to break the walled garden of the traditional Web2 market and pave the way for free flow and universal reputation across digital ecosystems. By acquiring on-chain and off-chain information, Sign Protocol attempts to bring as much data as possible to the chain, thereby democratizing access to user reputation and identity. Crypto projects can easily use this data to explore a variety of new use cases, such as:
Real World Asset (RWA) Verification: Bridging the physical and digital worlds through verifiable tags
Decentralized reputation system: an individual’s encrypted resume, including real-world and on-chain experience and experience
Governance 2.0: Weighted governance voting rights based on verifiable on-chain credentials
Cross-chain interoperability: a universal cryptographic identity that works wherever you go
Conversely, Web2 projects can also use Sign Protocol to find specifically marked audiences and incentivize their offline participation, thereby building organic online communities. This enables traditional platforms to leverage blockchain-based tools to enhance user acquisition and retention strategies.
TokenTable is more than just an airdrop tool. It also achieves a balance of sophisticated control and flexibility in token distribution, and is particularly good at handling large-scale distribution to millions of users. Whether it is strategic locking or programmatic release, TokenTable provides a one-stop solution for project parties, allowing them to automatically distribute crypto assets to eligible users in a user-friendly and cost-effective manner. Imagine a scenario where completing 10 coffee purchases (verified on-chain) automatically triggers a smart contract to distribute loyalty badge tokens to user accounts. This is the innovative potential of Web3 magic, used to create frictionless, trustless reward systems that increase user engagement and loyalty.
In short, the innovations embodied by Sign Protocol and TokenTable have the potential to drive paradigm shifts far beyond crypto airdrops themselves. As these technologies mature and their applications beyond cryptocurrencies become more widespread, we may witness a paradigm shift in how digital reputation is established and maintained, and how it impacts on-chain and real-world activities.
Summary and Outlook
The evolution of airdrops is an important milestone in the maturity of the crypto ecosystem. However, as airdrops become more popular and involve a wider range of people, the traditional airdrop model faces severe challenges. Many issues such as Sybil attacks and scalability issues remain unresolved.
As Vitalik pointed out, the answer to these challenges may lie in the authentication framework. As an emerging solution based on the authentication framework, Sign Protocol and its ecosystem project TokenTable are a powerful "web3 magic" combination that will redefine the existing concept of airdrops. Projects can use the powerful authentication capabilities of Sign Protocol and the flexible distribution mechanism of TokenTable to create a secure, efficient and truly community-aligned airdrop strategy from scratch.
Cryptocurrencies are expected to surpass traditional stocks in promoting community participation. The token-based model enables more direct and seamless community participation, making it particularly effective in building and maintaining an active user base. As one of the simplest and most effective ways to distribute tokens, airdrops remain the preferred setting for most projects to build large-scale, highly engaged communities during TGE. It is foreseeable that more airdrops will appear in the future and attempt to convert millions of ordinary people into new token holders. In this new paradigm, Sign Protocol and TokenTable are like Trojan horses for this round of changes, aiming to accelerate the establishment of a broader, fairer and more attractive decentralized digital community.
Looking ahead, the impact of emerging technologies such as Sign Protocol and TokenTable goes far beyond the airdrop itself. They have the potential to break the walled garden of the Web2 world and create a new universal digital identity and reputation paradigm in various ecosystems. From verifying real-world assets, implementing governance 2.0 models to creating cross-chain identity interoperability, these use cases are laying a solid foundation for a more connected and trusted Web3 vision.
