Free distribution of tokens to wallet addresses, usually as a marketing tool or to reward early users. Some airdrops are claim-based (you visit a site and connect a wallet); others are automatic. Airdrop hunting has become a sub-industry — wallets that interact with new protocols often qualify for future drops. Tax-wise, airdrops are typically treated as income at fair-market value on receipt.
Airdrop
Free distribution of tokens to wallet addresses, usually as a marketing tool or to reward early users. Some airdrops are claim-based (you visit a site and connect a wallet); others are automatic. Airdrop hunting has become a sub-industry — wallets that interact with new protocols often qualify for future drops. Tax-wise, airdrops are typically treated as income at fair-market value on receipt.
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