Monad Token Launch: Analyzing the Impact and Evolving Airdrop Strategies

Monad's Launch and Aftermath: An In-Depth Analysis

The market recently witnessed the highly anticipated launch of the Monad (MON) token, a Layer1 blockchain project. However, the launch wasn't entirely smooth, as the token price dipped below the cost price for public sale participants. The Fully Diluted Valuation (FDV) is now hovering in the $3 billion to $3.5 billion range, significantly lower than projected valuations.

This launch represents a blow to the Layer1 narrative and serves as a significant disappointment for those involved in airdrop campaigns. Prior to the launch, Monad was positioned as the highest valued unreleased Layer1 in the market, boasting a $3 billion valuation. This status generated considerable anticipation among airdrop participants, with the cumulative number of interacting addresses on the testnet exceeding 300 million.

Testnet Address Exclusion and Its Impact

In a surprise move, Monad excluded all interacting addresses on the testnet from airdrop eligibility. This decision contrasts with the common practice of many projects widely distributing rewards to participants. Airdrop participants often believe that frequent interaction with a testnet can lead to modest token rewards. However, the Monad team took a different course.

According to a Hangzhou-based airdrop studio manager, older addresses that interacted with Hyperliquid received airdrop rewards, while testnet participants were excluded. This decision sparked considerable criticism from the airdrop community, but Monad remained steadfast in its approach.

Monad's Unique Airdrop Approach

According to KOL Feng Mi, Monad aimed to bind contributors, individuals with identity, and potential to their network. Their approach focused on identifying genuine contributions, such as Monad ecosystem developers, active DeFi users, and holders of quality NFTs. Influencer spark received a reward of 3 million MON due to his contributions as a community moderator, not due to his interaction record.

For projects, airdrops serve as a means to reward long-term supporters and attract ecosystem participants. From Uniswap to Gitcoin and Arbitrum, numerous projects have employed airdrops to attract users. However, airdrop criteria have evolved, with some projects offering widespread distributions while others impose stringent rules on interactions.

Implications for the Airdrop Community

Monad's decision to exclude testnet users has raised concerns about the future of airdrop participation. Feng Mi believes that neglecting ordinary users can lead to an elitist network lacking a broad community base. He argues that Monad should provide opportunities for gradual participation for ordinary users.

Market analyst Zhui Feng suggests that airdrop participants contribute fees, data, and traffic, thus deserving incentives. KOL Bingwa believes that Monad's approach undermines industry trust. However, projects must prioritize their long-term growth when designing airdrop strategies.

An anonymous KOL argued that airdrop participants lack loyalty and often sell distributed tokens, causing selling pressure. Australian analyst Tu Ao believes that airdrop logics are changing, with centralized exchanges no longer prioritizing on-chain data and active user metrics. Having recognized that on-chain data is often inflated, airdrops are becoming more focused on genuine engagement.

In the long run, airdrops remain an important source of value in the crypto industry. However, their logic and targets are evolving. Tu Ao believes that Monad's airdrop outcome signals the end of the testnet slave interaction logic. As a result, participation in future testnets may decline.

Evolving Strategies in Airdrops

Several KOLs, such as Tu Ao, Bingwa, and Zhui Feng, anticipated Monad's decision to exclude testnet participation. Key influencers are now focusing on diverse strategies, such as verbal speculation and arbitrage. Multiple studios are reporting lower returns than last year.

A Du indicates that success in airdrops requires identifying areas with a competitive advantage, such as low labor costs, advanced technology, early project research, or influence. With declining Monad valuations and airdrops with locked stakes, the value of tokens received by airdrop participants is diminishing. The quantity-over-quality logic is no longer viable.

Tu Ao concludes that the era of easy profits for ordinary users is over. The door has already been closed, and Monad's airdrop simply shut the last gap.