---
description: >-
  Airdrop Farming describes a process of conducting activities on a new network
  or dapp in order to receive tokens/rewards from that project.
---

# What is Airdrop Farming?

Airdrop Farming is a term invented to describe the process of conducting activities on a network or dapp for the purpose of receiving rewards from that project. There have been many airdrops over the years, such as UNI, 1INCH, DYDX, Optimism, Arbitrum, and many others.\
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Airdrops are mainly used as a form of marketing and decentralization for projects. If users anticipate that they will receive an airdrop, then they are incentivized to learn about the project, use its products, and explore its ecosystem. Projects benefit from this because it helps grow their users, grow TVL, and also raise funding if their network/dapp is popular. It also benefits the decentralization of their project as tokens end up distributed between a larger group of users as opposed to simply being monopolized by the wealthiest users or the first buyers.&#x20;

Typically airdrop farming requires completing numerous activities in order to qualify for ewards. Those activities mainly consist of mimicking real activity, such as trading on decentralized exchanges, bridging funds, buying NFTs, participating in governance, lending or borrowing, etc. The more activities users complete and the higher their volume or balance, the larger the reward. If users fulfill the minimum criteria for airdrops, the rewards can be as much as $1000-$10000+!
