Espresso Network Launches ESP Token with 10% Airdrop Amid Ethereum Layer-2 Debate

The Espresso Network has launched its native token, ESP, as part of a strategic move to strengthen its position in the layer-2 blockchain space. The project is distributing 10% of the total token supply in its first airdrop, aiming to reward early participants and encourage broader adoption. The ESP token is intended to serve as a coordination and finality layer for rollups.

The airdrop will target over 1 million addresses across more than 30 activities, including mainnet registration, NFT ownership, and community events. These activities are designed to ensure broad participation while rewarding long-term engagement. Unclaimed tokens will be redistributed in future airdrops, grants, or rewards.

The ESP token also supports a permissionless proof-of-stake blockchain, which enables faster block finality compared to Ethereum. This design is tailored to meet the needs of layer-2 networks, offering improved interoperability and scalability. The airdrop emphasizes the project's commitment to decentralization and community-driven growth.

Why Did This Happen?

Espresso's airdrop is designed to reward early participants and encourage token circulation among the extended community. The ESP token allows users to stake and participate in protocol governance, aligning incentives across the network. This strategy reflects a broader trend in the blockchain industry of using token economics to drive adoption and participation.

The airdrop uses a holder scoring mechanism to assess user behavior from previous airdrops, such as whether tokens were held, staked, or sold. This data helps identify users with long-term investment intent. By rewarding such behavior, Espresso aims to cultivate a sustainable and engaged user base.

What Are Analysts Watching Next?

Analysts are closely watching how the airdrop impacts token distribution and network growth. The ESP token's role in a permissionless proof-of-stake blockchain is a key factor in its potential adoption. The network's design for faster finality and improved interoperability could position it as a strong contender in the Ethereum layer-2 ecosystem.

The institutional backing from firms like Andreessen Horowitz and Sequoia Capital also adds credibility to Espresso's long-term infrastructure focus. With over 40 eligibility paths for the airdrop, the program emphasizes broad participation across infrastructure, applications, and community contributions. This approach could help Espresso attract a diverse range of stakeholders.

Future allocations of ESP tokens include contributions, investments, and incentives, subject to vesting schedules. These allocations aim to support ongoing development and ecosystem growth. The airdrop is part of a broader token distribution strategy that includes future incentives to maintain network security and participation.