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Explain the Concept of “Airdropping” and Its Impact on Initial Capital Distribution.

Airdropping is the distribution of free tokens to a large number of wallet addresses, typically based on a snapshot of prior activity or holdings in a related ecosystem. While it doesn't directly raise initial capital, it is a form of decentralized distribution that helps bootstrap a community and decentralize governance.

It can impact capital distribution by creating a broad base of initial holders, increasing awareness, and potentially generating trading volume which feeds protocol fees.

What Are the Key Inputs a Market Maker Uses to Construct Their Initial IV Surface for a New Crypto Option?
How Does Airdropping Tokens Affect Initial Circulating Supply?
Which ‘Greek’ Is Directly Influenced by the Risk-Free Interest Rate Assumption in Black-Scholes?
What Is the ‘Dilution’ Effect for Existing Token Holders?