by @TZMCrypto & @sem1d5
Airdrops are a steady pillar of the Terra ecosystem and a big incentive for its community. Staking on a PoS blockchain is crucial for the security and stability of the system and, therefore, is incentivized through the distribution of rewards (more on this later). Pylon Protocol is the 3rd project to enable airdrops for LUNA stakers after Mirror and Anchor.
Let's take a step back and have a look at the distribution of Pylon's native coin, $MINE, to see where airdrops come into play**.** At genesis, 500,000,000 MINE were airdropped to all wallets that had LUNA staked at the time of the snapshot (pro-rata).
A couple of days prior to that, a public sale of the token was held with a hard ceiling of $2M worth of MINE tokens sold out in around 47 minutes. Here's an article to read more on this.
For what it concerns weekly airdrops, here's the roadmap that the Pylon team has laid out:
1B (10% of max supply) tokens are linearly distributed to LUNA stakers over a period of 2 years. Tokens will be distributed every 100,000 blocks (approximately every week). Snapshots are taken every 100,000 blocks to determine distribution eligibility.
Courtesy of Pylon
Overall, the main role of Airdrops is to guarantee a higher staking APY on the Terra network and introduce users to newly born protocols.