IDEAS home Printed from https://ideas.repec.org/a/spr/joevec/v34y2024i4d10.1007_s00191-024-00874-6.html
   My bibliography  Save this article

Crypto airdrops: An evolutionary approach

Author

Listed:
  • Darcy W. E. Allen

    (RMIT Blockchain Innovation Hub, RMIT University)

Abstract

Airdrops are a mechanism by which blockchain-based projects distribute digital tokens to users at zero cost. Billions of dollars of tokens have been airdropped for reasons such as marketing and decentralisation. The distribution criteria that projects have designed (e.g. previous user activity on the platform) have become more complex as different types of users adapt to receive a larger airdrop. This paper argues that coevolutionary theory can help us to understand the unique phenomenon of airdrop design, where participants (projects and users) strategically adapt over time and across different blockchain ecosystems. Nine airdrop case studies show an expanding set of innovative airdrop strategies (e.g. airdrops requiring additional activities to claim). The evolutionary analysis also implies changes in airdrop design (e.g. multi-round airdrops to facilitate learning) and further strategic innovation. Ultimately, this paper offers a new platform to apply the tools of evolutionary economics, exploring a unique process of innovation and evolution.

Suggested Citation

  • Darcy W. E. Allen, 2024. "Crypto airdrops: An evolutionary approach," Journal of Evolutionary Economics, Springer, vol. 34(4), pages 849-872, December.
    • Handle: RePEc:spr:joevec:v:34:y:2024:i:4:d:10.1007_s00191-024-00874-6
    DOI: 10.1007/s00191-024-00874-6
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s00191-024-00874-6
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s00191-024-00874-6?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Duygu Phillips & Per L. Bylund & Matthew W. Rutherford & Curt B. Moore, 2023. "Cryptocurrency legitimation through rhetorical strategies: an institutional entrepreneurship approach," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 35(1-2), pages 187-208, January.
    2. Vijay Mohan, 2022. "Automated market makers and decentralized exchanges: a DeFi primer," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 8(1), pages 1-48, December.
    3. Jean-Charles Rochet & Jean Tirole, 2003. "Platform Competition in Two-Sided Markets," Journal of the European Economic Association, MIT Press, vol. 1(4), pages 990-1029, June.
    4. Allen, Darcy W.E. & Berg, Chris & Lane, Aaron M., 2023. "Why airdrop cryptocurrency tokens?," Journal of Business Research, Elsevier, vol. 163(C).
    5. Allen, Darcy W.E. & Berg, Chris & Markey-Towler, Brendan & Novak, Mikayla & Potts, Jason, 2020. "Blockchain and the evolution of institutional technologies: Implications for innovation policy," Research Policy, Elsevier, vol. 49(1).
    6. Frolov, Daniil, 2021. "Blockchain and institutional complexity: an extended institutional approach," Journal of Institutional Economics, Cambridge University Press, vol. 17(1), pages 21-36, February.
    7. Makridis, Christos A. & Fröwis, Michael & Sridhar, Kiran & Böhme, Rainer, 2023. "The rise of decentralized cryptocurrency exchanges: Evaluating the role of airdrops and governance tokens," Journal of Corporate Finance, Elsevier, vol. 79(C).
    8. Davidson, Sinclair & De Filippi, Primavera & Potts, Jason, 2018. "Blockchains and the economic institutions of capitalism," Journal of Institutional Economics, Cambridge University Press, vol. 14(4), pages 639-658, August.
    9. Jeroen Bergh & Sigrid Stagl, 2003. "Coevolution of economic behaviour and institutions: towards a theory of institutional change," Journal of Evolutionary Economics, Springer, vol. 13(3), pages 289-317, August.
    10. Michael Peneder, 2022. "Digitization and the evolution of money as a social technology of account," Journal of Evolutionary Economics, Springer, vol. 32(1), pages 175-203, January.
    11. Isabel Almudi & Francisco Fatas-Villafranca & Luis R. Izquierdo & Jason Potts, 2017. "The economics of utopia: a co-evolutionary model of ideas, citizenship and socio-political change," Journal of Evolutionary Economics, Springer, vol. 27(4), pages 629-662, September.
    12. Almudi,Isabel & Fatas-Villafranca,Francisco, 2021. "Coevolution in Economic Systems," Cambridge Books, Cambridge University Press, number 9781108737999, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Darcy W E Allen, 2020. "When Entrepreneurs Meet:The Collective Governance of New Ideas," World Scientific Books, World Scientific Publishing Co. Pte. Ltd., number q0269.
    2. Isabel Almudi & Francisco Fatas-Villafranca & John Foster & Jason Potts, 2024. "Coevolution and dynamic processes: an introduction to this issue and avenues for future research," Review of Evolutionary Political Economy, Springer, vol. 5(3), pages 399-423, October.
    3. Allen, Darcy W.E. & Berg, Chris & Markey-Towler, Brendan & Novak, Mikayla & Potts, Jason, 2020. "Blockchain and the evolution of institutional technologies: Implications for innovation policy," Research Policy, Elsevier, vol. 49(1).
    4. Michael Paul Kramer & Linda Bitsch & Jon Hanf, 2021. "Blockchain and Its Impacts on Agri-Food Supply Chain Network Management," Sustainability, MDPI, vol. 13(4), pages 1-22, February.
    5. Ravi Kashyap, 2024. "The Democratization of Wealth Management: Hedged Mutual Fund Blockchain Protocol," Papers 2405.02302, arXiv.org, revised Jul 2024.
    6. Tan, Teck Ming & Salo, Jari & Brashear Alejandro, Thomas G. & Wei-Han Tan, Garry & Ooi, Keng-Boon & Dwivedi, Yogesh K., 2024. "Guest editorial: A blockchain-based approach to marketing in the sharing economy," Journal of Business Research, Elsevier, vol. 177(C).
    7. Michael Peneder, 2022. "Digitization and the evolution of money as a social technology of account," Journal of Evolutionary Economics, Springer, vol. 32(1), pages 175-203, January.
    8. Frolov, Daniil, 2019. "Постинституциональная Теория Блокчейна: Трансакционная Ценность И Ассамбляжи [Post-Institutional Theory of Blockchain: Transaction Value and Assemblages]," MPRA Paper 95962, University Library of Munich, Germany.
    9. Kyungmoo Heo & Sangyoon Yi, 2023. "(De)centralization in the governance of blockchain systems: cryptocurrency cases," Journal of Organization Design, Springer;Organizational Design Community, vol. 12(3), pages 59-82, September.
    10. Pereira, Joana & Tavalaei, M. Mahdi & Ozalp, Hakan, 2019. "Blockchain-based platforms: Decentralized infrastructures and its boundary conditions," Technological Forecasting and Social Change, Elsevier, vol. 146(C), pages 94-102.
    11. Kashyap, Ravi, 2024. "The Democratization of Wealth Management: Hedged Mutual Fund Blockchain Protocol," Research in International Business and Finance, Elsevier, vol. 71(C).
    12. Vijay Mohan & Peyman Khezr, 2024. "Blockchains, MEV and the knapsack problem: a primer," Papers 2403.19077, arXiv.org.
    13. Dulani Jayasuriya Daluwathumullagamage & Alexandra Sims, 2021. "Fantastic Beasts: Blockchain Based Banking," JRFM, MDPI, vol. 14(4), pages 1-43, April.
    14. Quan, Yutong & Wu, Xintong & Deng, Wanlin & Zhang, Luyao, 2023. "Decoding Social Sentiment in DAO: A Comparative Analysis of Blockchain Governance Communities," OSF Preprints bq6tu_v1, Center for Open Science.
    15. Vicente Moreno-Casas, 2024. "A coevolutionary approach to institutional lock-in," Review of Evolutionary Political Economy, Springer, vol. 5(3), pages 495-509, October.
    16. Mikayla Novak, 2024. "Sociologically influenced coevolutionary dynamics," Review of Evolutionary Political Economy, Springer, vol. 5(3), pages 473-493, October.
    17. Yutong Quan & Xintong Wu & Wanlin Deng & Luyao Zhang, 2023. "Decoding Social Sentiment in DAO: A Comparative Analysis of Blockchain Governance Communities," Papers 2311.14676, arXiv.org, revised May 2024.
    18. Conlon, Thomas & Corbet, Shaen & Hou, Yang (Greg) & Hu, Yang & Oxley, Les, 2024. "Bitcoin forks: What drives the branches?," Research in International Business and Finance, Elsevier, vol. 69(C).
    19. Sascha Hägele, 2024. "Centralized exchanges vs. decentralized exchanges in cryptocurrency markets: A systematic literature review," Electronic Markets, Springer;IIM University of St. Gallen, vol. 34(1), pages 1-21, December.
    20. Schrape, Jan-Felix, 2019. "Technology and the promise of decentralization: Origins, development, patterns of arguments," Research Contributions to Organizational Sociology and Innovation Studies, SOI Discussion Papers 2019-01, University of Stuttgart, Institute for Social Sciences, Department of Organizational Sociology and Innovation Studies.

    More about this item

    Keywords

    Cryptocurrency airdrop; Airdrop; Token airdrop; Blockchains; Airdrop design;
    All these keywords.

    JEL classification:

    • B15 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Historical; Institutional; Evolutionary
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:joevec:v:34:y:2024:i:4:d:10.1007_s00191-024-00874-6. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.