A Case Study in Retroactive Rewards
Ever wonder how early users of a DeFi protocol get recognized for their loyalty? The ParaSwap airdrop is a classic case study. As a leading Decentralized Exchange (DEX) aggregator, ParaSwap rewarded its community members by distributing its native governance token, PSP, to those who helped the protocol grow in its initial stages.
This event was a retroactive airdrop, meaning the rewards were based on actions already taken. Instead of asking users to complete new tasks, ParaSwap looked back at historical on-chain data to identify its most dedicated supporters on chains like Ethereum and Polygon.
How ParaSwap Identified Its Early Supporters
The core of a retroactive airdrop is the "snapshot"—a specific point in time where the project records all user activity. For the ParaSwap airdrop, eligibility wasn't something you could sign up for; it was earned through genuine usage. The criteria focused on:
- Transaction History: The simple act of making swaps through the ParaSwap interface.
- Frequency of Use: Consistent interaction over a period, demonstrating loyalty.
- Transaction Volume: The total value of assets swapped, indicating significant usage.
The ParaSwap team defined specific thresholds for these metrics to ensure that tokens were distributed fairly to real users who had contributed to the protocol's liquidity and volume.
A Concluded Event with Lasting Lessons
The claim window for the ParaSwap PSP airdrop officially closed on November 24, 2023. It is no longer possible to claim these tokens.
While this opportunity has passed, it serves as a valuable example of how projects in the crypto ecosystem use airdrops to decentralize governance and empower their communities. Understanding the mechanics of retroactive rewards can provide insight into how to engage with new and emerging protocols for potential future opportunities.
