What Is DAO?

A DAO (Decentralized Autonomous Organization) is a protocol or platform governed entirely by smart contracts and token holder votes rather than a traditional company structure. Members hold governance tokens that grant voting rights on treasury decisions, protocol upgrades, and fund allocation. DAOs use airdrops strategically to distribute tokens to early users, creating a decentralized voting base.

Why DAOs Matter for Airdrop Farming

DAOs are the primary vehicle for retroactive airdrops. When Uniswap airdropped its UNI token in 2020, it distributed 400 UNI to every address that had used the protocol before the snapshot date. This wasn't charity—it was building a governance community. Similarly, Arbitrum airdropped 625 ARB tokens to active users to decentralize control of the L2 network. By farming airdrops from protocols that plan DAO launches, you're positioning yourself to receive governance tokens worth real voting power.

How DAOs Use Token Distribution

DAOs typically reserve airdrop allocations to reward early adopters and bootstrap their governance. Hyperliquid's HYPER token launch included airdrop farming opportunities where active traders accumulated points before the token generation event. Jito's JTO airdrop rewarded validator operators and network participants. These airdrops serve dual purposes: rewarding genuine users and preventing sybil attacks by requiring real on-chain activity before governance token distribution.

Governance in Practice

Once you hold DAO tokens, you participate in tokenomics decisions. Token holders vote on fund deployment, fee structures, and protocol changes. This voting power makes governance tokens valuable beyond speculation—they grant influence over the protocol's future. Airdrop farmers who accumulate tokens from multiple DAOs gain influence across ecosystems, making governance participation a key motivation for farming activity.