Why are many people not receiving Arbitrum’s airdrop?

Arbitrum, a popular layer 2 scaling solution built on Ethereum, recently launched its token and airdropped it to its community. However, many eligible users reported not receiving the airdrop. This is not the first time a layer 2 project has airdropped tokens to its users.

Optimism, another Ethereum layer 2 solution, airdropped hundreds of millions of dollars’ worth of tokens to its users in May 2022, which sparked a frenzy for airdrops among the crypto community.

According to Delphi Digital, the number of active wallets on Arbitrum surged to 1.6 million on December 22, largely due to “airdrop hunters.” While airdrops can attract a large number of users to a project, it also has the potential to cause a steep drop in token value once the airdrop recipients sell their tokens. As a result, projects often try to target “real users” rather than just airdrop hunters.

Arbitrum has implemented a variety of conditions to determine which users receive the airdrop. These conditions include usage of the Arbitrum bridge, time spent transacting on the network, number of transactions/interactions with smart contracts, trading volume, liquidity provided, and number of transactions on Arbitrum Nova.

The more conditions a user fulfills, the more airdrop they receive. The project has also set time limits for users to qualify for the airdrop, with those who use the platform after the Nitro update on August 31, 2022, receiving only half of the airdrop based on their score.

“The purpose of this is to reward those who have supported the project from day one,” Arbitrum said in a statement.

Arbitrum has also introduced a “Sybil account” standard to weed out users who use multiple accounts to game the airdrop system. Using data from Nansen and Hop, Arbitrum will create a transaction graph on its network to identify related accounts. The project will then apply various criteria to exclude these accounts from receiving the airdrop.

Users who upgraded to Nitro will receive half the amount of the airdrop.

According to Arbitrum, Sybil accounts are those that receive assets from similar wallet addresses, have similar on-chain activities, or are part of a chain of more than 20 accounts that transfer tokens back and forth. All Sybil accounts will not receive Arbitrum’s airdrop.

Sybil account criteria

Other projects have also used similar methods to exclude airdrop hunters. Optimism, for example, excluded more than 17,000 wallet addresses during its first airdrop. While airdrops can be an effective way to attract users, it’s clear that projects need to be cautious in their implementation to ensure that they target genuine users and not just those looking for a quick profit.

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