Case Study: Salad's Adoption of Airstreams
It's all about creating the right long-term incentives.
![Case Study: Salad's Adoption of Airstreams](/content/images/size/w2000/2024/07/sablier-salad.png)
Salad, based in Singapore, is a leader in the Web3.0 revolution, building an X-2-Earn ecosystem by leveraging blockchain technology and innovative growth strategies. Salad’s mission is to incentivize engagement across platforms and foster industry-wide partnerships for mutual growth, offering fair earning opportunities to all community members.
Challenges
Salad sought an airdrop solution to manage its $SALD token distribution to its community members.
But, the traditional way of doing airdrops has a lot of flaws. The majority of airdrop recipients sell their allocation immediately, leading to a sell-off as soon as the token launches. On top of that, the interest these airdrops gather is short-lived. As soon as airdrop recipients sell their allocation, they no longer have an incentive to care about the project in question.
Several projects which launched their token recently through a traditional airdrop saw a sudden massive decrease in their protocol’s usage. The mercenaries farming their token no longer had an incentive to do so.
And that’s the big problem: traditional airdrops do not create the right incentives for community members. They don’t incentivize long-term thinking.
Solution
By vesting the airdrop using Sablier Airstreams, Salad ensured the right incentives were set in place. The best part is Salad decided to vest the token over a two-year period. Community members who claimed their allocation from the airstream campaign know that they will still be receiving tokens in more than a year from now.
This means they still have an incentive to care. They have an incentive to make sure the project becomes successful, as the tokens they will be receiving a year from now will otherwise be worth less than they are worth today.
“This commitment with Sablier ensures stability and sustained growth for our ecosystem while paving the way for exciting developments ahead.” – Felix Sim, Founder, Salad.
But the best part is that Sablier's battle-tested contracts have been extensively audited over the years, and have never been hacked since the original protocol launch back in 2019. This is important, because if you are doing an airdrop through a third-party solution like Sablier, a significant share of your supply will be locked up in that third-party solution.
In this case, fortunately, the core Sablier protocol is fully decentralized and immutable. The Sablier Labs team does not have control over user funds, and as mentioned previously, Sablier has never been hacked in over 5 years.
Conclusion
In conclusion, Salad created the exact right incentives for its token distribution thanks to Sablier Airstreams. It ensured long-term thinking, and a gradual token release led to a healthy price action.
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