A distribution of free tokens to wallet addresses, typically as a marketing strategy, reward for protocol usage, or method of decentralizing governance token ownership. Airdrops have become a popular way for DeFi protocols to reward early adopters and bootstrap community participation. Some airdrops have been worth thousands of dollars per eligible wallet, creating an entire subculture of airdrop farming.
Example
“Uniswap airdropped 400 UNI tokens to every wallet that had used the protocol before September 2020.”