Clarification on Airdrop Prioritization at MarginX
We want to clarify why airdrops to liquidity providers are not our current focus at MarginX.
Typically, liquidity providers are projects or market makers who supply their own liquidity. They earn rewards through spreads and by filling orders on both the buy and sell sides. Most retail investors, especially those with medium to small portfolio sizes, tend to avoid parking their assets in liquidity pools due to concerns over impermanent losses and the high expectations of substantial returns (10x - 100x).
Our airdrop strategy is designed to promote widespread adoption, targeting as many individual wallet addresses as possible. This approach serves as an effective marketing tool in the competitive and noisy crypto space, aiming to reach retail players who are active traders and contribute to building network effects.
Currently, distinguishing between retail player wallets and market maker wallets is challenging. Without an effective solution, a disproportionate share of airdrops could end up with the largest liquidity providers, which contradicts our goal of democratizing benefits across a broader user base.
MarginX does not own the projects participating in these airdrops. We can only advise these projects on the best strategies to spread their airdrops far and wide, based on our experience from past campaigns. Ultimately, the projects themselves decide their airdrop strategies; MarginX assists only in distribution accordingly.
At MarginX, we embrace a vision inspired by Satoshi: “Banking is essential for every person, and banks are not necessary.” We are committed to reaching a diverse array of retail players rather than concentrating benefits in the hands of a few.
Operating an exchange involves significant running costs, including server maintenance and more. Thus, engaging more retail players is crucial for our sustainability. We run a business, not a charity, and while no business can please everyone, we choose strategies that we believe are the best way forward for our platform and community.
Continual Improvement and Gratitude
We will keep tweaking our criteria as this is not set in stone. With each airdrop, we will evaluate the outcome and make improvements to meet our goals. Thank you for your continuous support. We value your involvement and feedback as we strive to enhance our strategies and better serve our community.
