AirDrop ( ~ 1.7056B IOST) Rewarding Long-Term Commitment

Overview: Why AirDrop Matters?

The AirDrop mechanism in IOST's new tokenomics design is a strategic reward program aimed at incentivizing long-term holders and ensuring that token distribution aligns with sustained network participation rather than short-term speculation. Many past blockchain projects have suffered from one-time, non-strategic airdrops that led to immediate sell-offs, centralization of supply, and limited long-term engagement.

To address these fundamental issues, IOST's AirDrop model has been meticulously crafted to ensure:

• Fair and proportional rewards based on existing holdings.
• A vesting-based distribution to prevent market volatility.
• Longer-term incentives through a holding duration multiplier.

This model ensures that rewards are not just a short-term liquidity injection but a carefully designed incentive to maintain network strength and user retention.

Token Allocation for AirDrop

A total of 1.7056 billion IOST is allocated to AirDrop, which is divided into two categories:

1. L1 Users (852.8M IOST)

   • Rewards are directly proportional to the amount of IOST held by users at the time of snapshot.
   • A holding duration multiplier is applied to incentivize users who maintain their holdings over time.
   • Linear vesting over 48 months ensures sustainable long-term incentives.

2. Exchange Users (852.8M IOST)

   • Please see below.
   • IOST works with partnered exchanges to determine the allocation mechanism based on user engagement, historical activity, and staking behavior.

The vesting model and holding duration multiplier ensure that users who remain committed to IOST benefit the most, rather than short-term speculators who sell immediately after receiving an airdrop.

L1 User AirDrop Calculation Mechanism

L1 users (852.8M IOST)

Overview:

The Airdrop is designed to reward existing IOST L1 token holders, including exchange users, by distributing tokens in proportion to their holdings. In addition to the base allocation, a staking duration multiplier incentivizes longer-term stakers, reducing short-term speculation.

Allocation = 852,800,000 IOST

• For a given user $i$ who holds $C{A}_i$ IOST (with $\sum _{j}C{A}_j$ being the total eligible L1 holdings), the base allocation is computed as:

  $B_i=A_{AD}\times \frac{C{A}_i}{\sum _{j}C{A}_j}$

• A staking duration multiplier $S(t)$ is then applied, where $t$ is the staking duration in months:

  $S(t)=min(1.5,1+\frac{t}{24})$

  This multiplier increases linearly and caps at 1.5× when $t\ge 12$ months.

• The final reward for user $i$ is:

  $R_i=B_i\times S(t_{\text{stake}})$

Where:

• $C{A}_i$ is the Current Allocation of User $i$
• $A_{\text{AD}}$ is the total allocation for L1 users airdrop (852.8M)
• $B_i$ is the base allocation of user $i$
• $S(t)$ is the staking multiplier

Vesting Schedule:

• No Immediate Unlock: Distribution begins after the snapshot is taken.
• Linear Vesting: The total reward is vested linearly over 48 months (4 years).
• Monthly Release: Each month, 1/48 of the total allocated reward is disbursed.
• Minimum Holding: 1000 IOST

Vesting Schedule: Ensuring Long-Term Alignment

To prevent market destabilization and reward patience, IOST enforces a strict linear vesting model for AirDrop rewards.

Key Vesting Rules

1. No Immediate Unlock: Tokens remain fully locked after the snapshot.
2. 48-Month Linear Vesting:
   • Every month, 1/48 of the allocated reward is released.
   • This prevents mass liquidation and ensures gradual distribution.
3. Encourages Long-Term Holding: Users who maintain their holdings throughout the vesting period maximize their benefits.

Comparison with Traditional Airdrop Models

Feature	IOST AirDrop Model	Traditional Airdrop Model
Fair Allocation	Proportional to existing holdings	Often arbitrary or fixed
Incentives for Holding	Holding duration multiplier (up to 1.5×)	No incentives to hold
Market Stability	48-month linear vesting	Often immediate unlock
Dump Prevention	Gradual release, prevents speculation	Prone to sell-offs

Example Calculation

Let's consider a realistic scenario to demonstrate how the AirDrop rewards are calculated.

Example Scenario:

• The total L1 AirDrop allocation is 852.8M IOST.
• The total amount of eligible IOST held across all users is 8.528 billion.
• User Alice holds 100,000 IOST at the snapshot and keeps it for 12 months.

Step 1: Compute Base Allocation

Alice's base allocation is:

$B_{\text{Alice}}=852,800,000\times \frac{100,000}{8,528,000,000}=10,000\text{ IOST}$

Step 2: Apply Holding Duration Multiplier

Since Alice holds for 12 months, the maximum multiplier applies:

$H(12)=min(1.5,1+\frac{12}{24})=1.5$

Thus, Alice's final reward:

$R_{\text{Alice}}=10,000\times 1.5=15,000\text{ IOST}$

Step 3: Vesting

Since the reward lasts for 48 months, Alice receives: Thus, Alice gradually accumulates her reward over time, instead of a single large lump sum.

Summary: Why This AirDrop Model Works?

Key Benefits of IOST's AirDrop Model:

✅ Rewards Long-Term Holders – The holding duration multiplier ensures that loyal users get rewarded more.

✅ Prevents Immediate Sell-offs – The 48-month vesting discourages dumping.

✅ Ensures Fairness – Proportional allocation ensures that rewards scale with actual network participation.

✅ Stabilizes the Market – Gradual releases prevent price volatility.

Comparison with Other Blockchain Airdrops

Many past blockchain projects have suffered from poorly designed airdrop models, which resulted in:

❌ Massive token sell-offs, leading to price collapses.

❌ Concentration of wealth among a few wallets.

❌ Lack of long-term incentives, causing low retention.

In contrast, IOST's carefully engineered model introduces mathematical precision, strategic vesting, and incentive alignment, ensuring that the AirDrop is not just an event, but a long-term value driver for the ecosystem.

Airdrop for holders in CEX

Exchanges Users (852.8M IOST)

Will be proportionally distributed to exchanges according to the amount held by different exchanges.

$A_e=A_{EX}\times \frac{C{E}_i}{\sum _{j}C{E}_j}$

Where:

• $A_{EX}$ is the total amount allocated to exchanges (852.8M)
• $A_e$ is the airdrop amount granted to the $e$-th exchange
• $C{E}_i$ is the amount held by the $i$-th exchange
• Minimum Holding: 1000 IOST

Important Notes:

• Each exchange will implement their own claiming procedure with detailed instructions to follow
• The list of participating exchanges will be announced next week via our official Twitter and Telegram channels
• IOST holders should prepare by ensuring they meet the minimum requirement of 1,000 IOST tokens