The world of cryptocurrency offers numerous opportunities to earn rewards, and one of the most talked-about methods is staking to receive airdrops. Recently, the Uniswap Foundation proposed a new plan to distribute protocol fees to staked UNI token holders. This announcement caused UNI's price to surge from $7 to $12 in a short period—a gain of over 70%.
If this proposal passes, stakers could earn a share of the protocol's revenue. Data shows that Uniswap generated $58 million in fees in January 2024 alone. This move highlights the growing trend of projects rewarding their loyal stakeholders.
How Staking Airdrops Work
Staking involves locking up your tokens in a network to support its operations. In return, you earn rewards, often in the form of additional tokens or a share of network fees. Many projects also distribute airdrops—free tokens—to users who stake their assets, as a way to encourage participation and decentralization.
Unlike traditional airdrops that require active engagement and gas fees, staking is relatively passive. You don’t need to constantly interact with the network or spend on transaction costs. However, it does come with risks, such as potential token value depreciation.
Popular Staking Opportunities for Airdrops
Cosmos Ecosystem Staking with Keplr Wallet
The Cosmos ecosystem is well-established, with nearly 40 interconnected networks including Cosmos, Osmosis, Celestia, dYdX, and Dymension. Staking tokens like TIA, ATOM, and OSMO through the Keplr wallet can yield high annual percentage yields (APY). Many in the community consider ATOM a "golden shovel" because stakers have historically received airdrops from other projects.
To get started, use Keplr wallet to connect and stake on your preferred network.
Ronin Game Chain Staking with Ronin Wallet
Ronin is a gaming-focused blockchain hosting popular titles like Axie Infinity and Pixels. Recently, Pixels airdropped its PIXEL token to users who staked RONIN. Some users reported receiving over 1,900 PIXEL just for staking, without even playing the game.
One user even shared an unexpected windfall: by staking RON/wETH, they received an airdrop of 3,300 RONIN, worth over $9,000. The network currently features ten games, and future airdrops are anticipated for stakers.
To participate, create a Ronin wallet and stake RONIN through their official platform.
Solana Ecosystem Staking with Phantom Wallet
PYTH is a key oracle project within the Solana ecosystem. While staking PYTH doesn’t currently offer APY, it grants voting rights and governance privileges. Recently, Nable airdropped tokens to PYTH stakers, adding extra value to their holdings.
Some investors are staking across multiple wallets with varying amounts to maximize potential airdrop eligibility. For example, one user staked 100 PYTH across several accounts, investing around $15,000 in hopes of future rewards.
Dymension Chain Staking with MetaMask
After its launch, Dymension quickly opened staking for DYM tokens. Over 1 billion DYM are currently staked, with a total value locked (TVL) exceeding $181 million. While it’s unclear which projects might airdrop to DYM stakers, many are participating to position themselves for potential rewards.
When staking DYM, choose validators with lower commission rates to maximize returns.
Weighing the Risks and Rewards
Staking for airdrops can be profitable, but it’s not without risks. Token values can fluctuate dramatically—what seems like a safe bet today might lose value tomorrow. There’s also the possibility of project failure or token delisting.
On the flip side, you might benefit from token appreciation and unexpected airdrops. For instance, early TIA stakers saw significant price increases alongside airdrops from DYM and ALT.
👉 Explore current staking opportunities
Frequently Asked Questions
What is staking in cryptocurrency?
Staking involves locking up your crypto holdings to support network operations like transaction validation. In return, you earn rewards, which can include additional tokens or a share of network fees.
How do I qualify for airdrops through staking?
Projects often snapshot staked balances at random times. To qualify, you typically need to stake a minimum amount of tokens before the snapshot date. Requirements vary by project.
What are the risks of staking?
The primary risk is token depreciation. If the value of your staked assets drops, you could suffer losses. There’s also smart contract risk and the possibility of project failure.
Can I stake multiple tokens for different airdrops?
Yes, diversifying across ecosystems like Cosmos, Ronin, Solana, and Dymension can increase your chances of receiving multiple airdrops.
Do I need technical knowledge to stake?
No, most staking is done through user-friendly wallets like Keplr, Ronin, Phantom, or MetaMask. Just ensure you follow official guides to avoid scams.
How do I choose which tokens to stake?
Research projects with strong fundamentals, active communities, and a history of rewarding stakers. Diversify to spread risk.
Conclusion
Staking for airdrops is a growing trend in the crypto space, offering a passive way to potentially earn rewards. By participating in established ecosystems like Cosmos, Ronin, Solana, and Dymension, you can position yourself for future opportunities. Always remember to assess risks, diversify your holdings, and stay informed about project developments.
Happy staking!