Traditional airdrops are dead. Time for credentials

The world of crypto is always evolving, and with it, the methods used to conduct marketing activities and incentivize users. In the early days of crypto, airdrops were the primary way of rewarding users. Projects used to spend months reviewing and adjusting tokenomics for a single airdrop event.

However, as the ecosystem has matured, the trend has shifted towards the use of on-chain credentials. Our main thesis is that on-chain credentials allow for a much more granular, efficient and rewarding way to compensate users over time.

In this article, we will explore the advantages of using credentials over airdrops and what this shift means for the future of crypto.

One of the biggest problems with airdrops is the lack of tracking and personalization. Airdrops are often broad and generic, making it difficult to monitor user contributions and build specific user personas.

Credentials provide a remedy by facilitating ongoing analysis of value generated by users and the creation of detailed user profiles. Furthermore, credentials are much more granular than airdrops, allowing for extreme personalization of incentives. This opens up new possibilities for rewarding users beyond just tokens.

Airdrops are typically one-time rewards, meaning that they only provide compensation once. In contrast, credentials can be used to consistently reward users over time, allowing projects to maintain engagement and incentivize long-term participation. This consistency helps to build trust and loyalty between users and projects.

Airdrops can be financially risky for projects, as they require a commitment of tokens upfront, which can dilute the value of the existing tokens in circulation. With credentials, projects don’t have to make this upfront commitment and can instead approach incentives and rewards in a more measured and iterative way, tweaking the incentives over time. This can help to minimize financial risk and provide a more sustainable approach to incentives.

Airdrops are sometimes the equivalent of betting the house in the first hand.

For too many projects, the standard 2020–22 playbook was:

The main problem is that tokens make it hard to understand whether people actually want the product and causes huge retention problems down the line.

Almost all crypto projects are still startups. Startups are inherently fragile, as there are so many things that can go wrong. Premature token launches are equivalent to placing a ticking time bomb in the office, stacking financial and product risk at the same time.

Credentials allow for a better signal-to-noise ratio and to focus on the right thing: making users happy with the product.

The future of on-chain credentials

So, if on-chain credentials are the future, how will they evolve? Some things we expect in the next months and years:

We will touch upon these points in the next articles.

About Tide

Tide is an on-chain credential protocol for marketing allowing communities to easily spin up credential-based engagament programs to acquire, engage and retain users.

We pioneered a permissionless, no-code campaign builder to launch web3 marketing campaigns with a few clicks.

Moreover, you can access a quest analytics dashboard to run data-driven marketing activities.

Our team is always happy to discuss credential-based strategies with projects and we are working with several brands to help them build better communities.

Reach out on Discord or Twitter if interested.

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