Retroactive – Earn Money On Layer 2 Without Capital

Along with the expansion of Layer 2, airdrop/retroactive is a trend in the coin airdrop that helps testnet testers to receive airdrop rewards.

What is retroactive cryptocurrency?

A crypto airdrop is the donation of digital assets from one crypto project to multiple wallets. The idea is to distribute cryptocurrency or tokens to current or potential users to raise awareness of the project. These tokens are distributed for free, but some airdrops require users to perform some tasks before receiving funds. Airdrops were popular during the Initial Coin Offerings (ICO) boom in 2017, but they are still used as a marketing strategy by many crypto projects today.

Retroactive is one of the most popular forms of coin airdrop, allowing objects such as users, supporters, and contributors to the project’s development to receive rewards in the form of tokens from the project itself there.

Currently, the quantity and quality of airdrop projects have constantly been increasing. The value of projects ranges from several thousand dollars to hundreds of millions of dollars and has not shown any sign of stopping. This proves the attraction of participating in the airdrop, especially the retroactive form.

How to find projects with Retroactive capabilities

To identify tasks with high Retroactive ability, you first need to ask: Which projects will usually be Retroactive/ Airdrop Coin?

Search for projects without tokens

Each ecosystem consists of many different pieces such as Lending, Payment, Derivative, AMM Dex,… You can categorize projects by array and check which projects do not have tokens. Then compare with competitors and similar projects before realizing Retroactive’s potential in the coming time.

For example, Uniswap, Sushiswap, and PancakeSwap,… are all AMMs that already have their own tokens, and projects like Uniswap, 1inch, previously had retroactive. So it is highly likely that other rival AMM projects that do not have tokens will soon follow this direction as well.

Perpetual Protocol and dYdX are decentralized exchanges supporting perpetual contracts (Perpetuals). Perpetual Protocol has a token, dYdX has also had a Retroactive popular wave. Our job is to find decentralized exchanges that also support tokenless perpetual contracts and do a few transactions.

After you have filtered the list of potential projects that do not have a token, you can check the mechanism and how these projects work.

For example, Old projects have been operating for a long time without tokens; what is the reason? Do they have a large community, stable business, and loyal user support behind them? If so, maybe this project has intrinsic value and attracts investors not because of their token. At this point, the token release is probably only a matter of time to demonstrate the seriousness and commitment of the project’s development.

Project with revenue

A project with huge revenue without tokens has a very high chance that, sooner or later, there will be retroactive programs for old users.

Projects with revenue that already have tokens can also have a retroactive program to stimulate users to access the scheme.

For example, 1inch became popular after the end of the first airdrop program. But on February 17, 2021, they announced that they would continue to airdrop for Uniswap users.

The fact that projects have revenue but have not yet had any airdrops also makes many users stay and wait and use their products because the value of each airdrop of projects with payment is usually very high: DYDX, 1Inch, Uniswap…

Testnet projects/need to reach users & give feedback on products

Newly released testnet projects will often also perform Retroactive/Airdrops to encourage users to interact with the protocol to find system vulnerabilities, security flaws, code errors, etc.

Please regularly keep an eye on the social networking sites of these projects, such as Twitter, Telegram, Facebook, and Discord, to not miss any airdrops.

In addition, the community’s interest in these airdrops also helps developers measure the growth prospects and develop a more extensive user base for the project in the future when the mainnet is officially launched.

The ecosystem/project has cash flow in

Determining where the money is going is also a way to help you project potential airdrop opportunities. In particular, pay attention to new ecosystems. There are not too many events to attract the community. The reason is that when the whole ecosystem is growing hot, projects will also accelerate the launch of their products to attract new users, create a community around the project, and gain reputation. And one of the best ways to do that is through an airdrop.

Take a look at the incredible growth of the Solana ecosystem over time. When the money flowed in and a series of new projects launched, many projects airdropped to attract users, such as Orca, Port Finance, etc

Example: Orca airdrop more than 5 million ORCA tokens (5% of total supply)

And as a result, Orca and Port Finance are both well known.

Follow and update information about upcoming airdrops

In addition to self-filtering, classifying and comparing with similar projects, monitoring social networking sites of potential projects

The most important secret to starting retroactive

Staying calm is the key to success for investors who want to participate effectively retroactively. Whether which project you choose to invest in and stick with is entirely voluntary, and how developers recognize and repay those contributions is self-centered. So, just because you give does not mean that you will receive it.

Therefore, users should not emphasize time or pay too much attention to the airdrop. “Failed to achieve speed” will happen if the user does not keep comfortable or still places heavy emphasis on retroactive.

Next, users need to “know enough” when participating in the retroactive airdrop projects. Investors should know that: there will be many airdrop projects in the market. Therefore, please allocate investment, effort, and mind appropriately. The two states to avoid when participating are “knowing how to do it and not doing it” and “knowing how to participate more”.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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