Since the Crypto market was born, retroactive and airdrop have also come up as a form of giving ownership of project tokens to the community. However, many people still do not distinguish the difference between these two concepts, leading to misdirection, so let’s join Weakhand to learn the difference between retroactive and airdrop in this article.
Definition of Retroactive and Airdrop
What is Retroactive?
Retroactive is a type where the project will reward tokens to the community at the time of TGE instead of opening a public sale through a third party. Usually the projects are large enough with a long enough development period and have enough money to spend will use retroactive form to move towards decentralization.
Those who receive retroactive are often those who used the product early both on testnet and mainnet, contributing significantly to the development of the project. Retroactive is a form of gratitude from the project to its users.
The criteria for retroactive initially set by the projects were very simple such as just opening an account like dYdX’s, swapping a few Uniswap orders, reaching a volume of $1000 for 1inch, etc. However, it is becoming increasingly common. a more difficult task because the project has to filter and remove sybil wallets or airdrop farmers.
What is Airdrop?
Airdrop is understood as a form in which participants need to complete certain tasks given by the project, divided into 2 forms below:
- Perform interactive tasks with the project’s social channels such as: Telegram, Twitter, Youtube, Discord, Facebook,… with an investment of almost 0 VND.
- Perform tasks given by the project such as racing to top volume, interacting with project products on both testnet and mainnet with a small capital.
The airdrop criteria range from very easy to very difficult depending on the project, and the higher the prize offered, the more competition there will be from other participants.
Compare Retroactive And Airdrop
|
Header
|
Retroactive |
airdrop |
|---|---|---|
|
Time |
Usually quite long, from about 6 months to 1 year depending on the project. |
Usually lasts a few weeks to a few months depending on the project’s campaign |
|
Level of difficult |
The difficulty of retroactive is often very high. |
The difficulty of the airdrop spans many different levels. |
|
Level of competition |
Retroactive is very fair in distributing to everyone with the same criteria. |
The level of competition for airdrops is often very large because each level of difficulty will be suitable for a different type of user |
|
Reward |
The size of the reward will depend on the project and general market trends. |
The higher the difficulty of the airdrop, the higher the reward will be. |
As in the comparisons above, we can easily see that choosing retroactive and airdrop will suit two different audiences:
- Retroactive will be suitable for those who have outside capital or work to stay with the market for a long time.
- Airdrop will be suitable for those who want a stable source of income and low costs from the Crypto market in addition to investing.
Should You Sell Or Keep The Tokens Received From Retroactive And Airdrop
For retroactive, considering whether to sell or keep the bonus will depend on many factors such as the level of impact of the project as well as the market situation in general, so selling a part and keeping a part of the moon bag will be the most suitable answer for everyone receiving retroactive.
For airdrops, the decision will be easier because projects launching an airdrop campaign have generally launched tokens before, so selling to cover the costs of other airdrops will be most suitable, but it is not. It is rare for projects’ tokens to increase in price immediately after conducting an airdrop.
Summary
Weakhand has just brought everyone an article on the difference between retroactive and airdrop, hoping that through that, no one will mistake this concept twice, leading to choosing the wrong path that suits their own conditions.
