Jupiter and Pyth Airdrops are coming to Solana

Jupiter and Pyth Airdrops are coming to Solana

After last year, most people would not expect Solana to take over Amsterdam with amazing projects and news from companies like Google or projects like Render. In what were some of most anticipated moments, Jupiter and Pyth network announced upcoming airdrops, which will very be liquidity injections for the Solana ecosystem.

Airdrops are great for the Ecosystem

Airdrops are a method of distributing tokens to a large number of users for free, as a reward for using the protocol and contributing to its success. In addition to rewarding users, airdrops have the potential to accelerate growth and build a loyal community. When people receive free tokens, they may become more interested in the projects development and success, leading to increased community participation and organic growth.

Airdrops can incentivize specific behaviors within a cryptocurrency ecosystem. For example, projects might airdrop tokens to users who provide liquidity to a decentralized exchange, stake tokens, or refer new users. This encourages user participation in activities that benefit the ecosystem.

Airdrops can inject liquidity into the market. When people receive free tokens, they may decide to trade or use them, contributing to the overall trading volume and liquidity of the cryptocurrency, which is crucial for new tokens looking to establish a presence in the market.

A notable example of how an Airdrop can push an ecosystem forward is the Uniswap airdrop. The Uniswap airdrop created a wave of liquidity that helped several protocols grow to a point where they also started doing airdrops to reward users for the success of their protocols.

Jupiter ($JUP) Airdrop

Jupiter has unveiled several significant developments. Firstly, they are conducting a $JUP airdrop and releasing their governance token. The $JUP distribution plan includes community growth (40%), a locked token sale (20%), and a team and strategic reserve (40%), vesting over 2 years. The airdrop will be executed in four phases with criteria to be discussed with the community. They aim to attract new capital to Solana, particularly focusing on existing loyal users who have been using the protocol in the last two years.

Jupiter also announced their Solana yield-bearing stablecoin, collateralized and staked with SOL. It aims to enhance staking yield from 7-8% to 7-17%, but it carries liquidation risk factors. The project involves arbitrage, liquidation, and a unique collateralization mechanism to manage these risks.

Furthermore, Jupiter is launching a token launchpad to simplify the token launch process and a public seed round initiative to support new projects. Finally, the integration of Circle's Cross-Chain Transfer Protocol (CCTP) into Solana will enable seamless bridging between different blockchains and significantly improve liquidity.

These updates reflect Jupiter's commitment to advancing the Solana ecosystem, offering innovative solutions for DeFi, and expanding its support for developers and projects on the network. These developments are expected to bring increased liquidity and activity to Solana in the coming weeks.

Pyth Network ($PYTH) Airdrop

Pyth ams to distribute PYTH Tokens to various stakeholders within the Pyth Network ecosystem, making it one of the largest airdrop programs of its kind. More than 75,000 wallets are eligible to receive PYTH Tokens based on their activities across 27 blockchains and over 200 decentralized applications, demonstrating a commitment to nurturing a thriving oracle ecosystem.

The recipients eligible for airdrop allocations fall into three categories. First, active DeFi participants who have engaged with decentralized applications using Pyth data will receive allocations based on their on-chain activity. Secondly, active community members who have actively participated in the network's social media channels and hold specific roles or NFTs are also entitled to allocations. Lastly, decentralized applications utilizing the Pyth Network's data will receive allocations based on the number of oracle calls made to the Pyth Network.

The criteria for DeFi participants' allocations are determined by their on-chain activity with dApps using Pyth data, with the snapshot taken on September 1, 2023. Various anti-Sybil analysis techniques were applied to filter out fraudulent wallets, leading to a total of 73,815 unique address-chain combinations. These were then divided into three buckets, with 55% of the tokens allocated to the top third, 30% to the middle third, and 15% to the final third. As a result, different amounts of PYTH tokens were allocated to wallet addresses in these buckets based on their activity.

Community members' allocations are based on criteria such as holding special roles in the official Pyth Network Discord server, owning Pyth Network NFTs, or excelling in one of the official Pyth Network Ambassador Programs. The snapshot for community activity was taken on October 25, 2023, and the movement of NFTs after this date doesn't affect eligibility.

Conclusion

The airdrops from Pyth Network and Jupiter are likely going to bring waves of liquidity into the Solana, and contribute to the success and growh of the ecosystem in the long run.