Note: When evaluating swaps involving the airdropped token, precaution is exercised to segregate swapper wallets based on two essential conditions:

1. The wallet received the airdrop.
2. The wallet engaged with the Solana Community.

Regarding airdrops, our analysis is confined to PYTH, WEN, JITO, and JUP, with the intention to broaden the scope in the future.

Examining net swaps is a promising avenue to gauge whether the community transitioned into the token post-airdrop overall. However, for the present, a comparison between the amount of the airdropped token received and the amount swapped from it can provide valuable insights.

Given the substantial and seemingly abundant nature of Airdrops, there is compelling evidence suggesting their role as a financial accelerator, potentially influencing the broader crypto financial cycle. This extends beyond the realms of mere news, excitement, and hype, typical in any financial market, to a tangible source of wealth creation that permeates the entire ecosystem.

Considering the macro implications of this form of wealth creation is crucial as we seek to define the significance of Airdrops on an economic scale. Taking Star Atlas as an example, a noteworthy $5.6 million has been distributed to the community since November 20th, 2023 (pre-JUP), averaging $500 per wallet. This financial infusion played a pivotal role in propelling marketplace volumes to a record-breaking $4.2 million in December (refer to the figure below). The sum dropped into the Star Atlas community amounted to approximately $4.5 million in late November and December (JITO/PYTH). This prompts us to carefully assess the scale and importance of Airdrops in shaping the economic environment of a web3 game.

It is well-established that airdrops constitute a significant source of unexpected wealth. In metaverse economics, the critical inquiry revolves around the dynamics of airdropping a non-community token into a Solana community characterized by specific loyalty.

Several pertinent questions arise:

1. What is the disposition of these tokens – are they retained or liquidated?
2. Is there a channeling of these funds into community assets?

These questions hold considerable significance and warrant comprehensive answers. Consider the ramifications of distributing a token to a community with a strong internal focus. Such a community is likely to offload the token at a higher rate compared to individuals lacking strong community ties or relationships. Consequently, the responses to these questions can serve as a valuable guide on the proper approach to executing an airdrop. These are the microeconomic issues.

• The airdrops considered here are specific to SOLANA and provide a good bit of variation in terms of wallet eligibility, average size of claims, and overall drop size.
• The projects considered are gaming projects with a range of brand loyalty and tokenomic structures
• Using the tokenomic behavior of players can help to shed light on the project specific impact of an airdrop to it's playerbase.