# Airdrops Damper

Airdrops are an innovation that's often leveraged by protocols to incentivize usage and reward early supporters. However, what inevitably happens is people start wash trading and using protocols in the hopes of getting a windfall of tokens. And when the airdrop happens, they immediately dump the tokens on DEXs thus causing massive congestion on-chain.

{% embed url="<https://twitter.com/0xShitTrader/status/1625584689405648928>" %}

### How to damp sell pressure?

TWAMMs are the best tool for helping dampen the effects of these massive token sales. Sellers who want to exit their position can DCA gradually out and buyers who are interested in entering a position can DCA purchase.&#x20;

{% embed url="<https://twitter.com/parsec_finance/status/1625558056464486403>" %}

Both these participants will inevitably end up netting a higher return than market buying/selling an extremely volatile token. Additionally, the gas congestion experienced after every major airdrop will be resolved as well.&#x20;

### How to solve the stickiness problem?

There have been plenty of studies done on the efficacy of airdrops. Uniswap, the most famous airdrop, only had ***7%*** of wallets that still hold Uni tokens and only ***1%*** of wallets increased their position.

{% embed url="<https://dune.com/blog/uni-airdrop-analysis>" %}

There are a few ways to solve this, and the most intuitive one revolves around vesting. Instead of giving users all the rewards at once, dripping the tokens over a given period with certain requirements ensures the people interacting with the protocol have the right incentives.&#x20;

{% embed url="<https://twitter.com/dberenzon/status/1625620290075258880>" %}

TWAMMs are an obvious answer to this problem of transferring tokens to an address over a specified number of intervals. Escrows are not a feature built into TWAMMs today, but it's a great tool for an eager developer to build on top of TWAMMs.

#### Inspiration

<figure><img src="/files/WE4oO7PCw6xVAQ09pKPt" alt=""><figcaption></figcaption></figure>

{% embed url="<https://swap.defillama.com/arb>" %}


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