Airdrops emerged as a major distribution method when protocols sought to decentralize governance and reward early users without requiring traditional venture financing. Retroactive airdrops reward users for historical participation—those who used Uniswap before UNI launched received UNI tokens proportional to historical trading volume. Points-based airdrops (increasingly common) require users to accumulate points through specific actions (testnet transactions, bridge usage, governance participation) and convert them to tokens at a later date. Both models aim to distribute tokens to aligned communities rather than passive buyers. The mechanics of airdrop distribution create significant tokenomics implications. Most airdrops include vesting schedules and claim deadlines, spreading token entry points across weeks or months. Initial claims often unlock 10-25% of a user's airdrop immediately, with remaining tokens vesting linearly over 6-24 months. This structure attempts to reduce immediate sell pressure by forcing a distribution of sellers over time. However, users who don't align with protocol vision often liquidate their maximum claimable tokens immediately, while true believers hold throughout vesting. The result is a bifurcated user base: mercenary claim-and-dump participants versus long-term stakeholders. Airdrop sell pressure has become more predictable and studied by markets. Large airdrops (worth $1M+ per recipient) historically create sell pressure that peaks 24-48 hours after claim dates, then stabilizes as initial dumpers exit. Savvy investors factor airdrop unlock schedules into medium-term price models, anticipating volatility spikes at major vesting milestones (e.g., 3-month cliff dates). Protocols that structure airdrops with longer cliffs and gradual vesting reduce immediate impact but extend the period of sell pressure.