Snapshot Rules: How Do They Apply to Bybit Web3 IDO 2.0?

If you’ve been around the crypto space long enough, you’ll have heard the term “snapshot” dropped here and there. This term is usually paired with the mention of “airdrops,” “giveaways,” “launchpads” and even “initial DEX offerings (IDOs).” Curious to find out more about what a snapshot in the crypto world refers to? Read on to find out everything you need to know.

Key Takeaways:

• A snapshot in crypto refers to a screenshot of transactions that have occurred on a blockchain at a specific point in time.

• Snapshots are used in various scenarios, including airdrops, giveaways, hard forks and IDOs.

• Snapshots are taken three times a day, and IDO scores are calculated based on the average asset amount in your Bybit Cloud Wallet. 

What Is a Snapshot?

A snapshot is essentially a screenshot of transactions that have occurred on a blockchain at a specific block height, which is defined as the last block of transactions added to the blockchain. 

This powerful tool offers a glimpse into the state of the blockchain, including individual wallet balances as well as the tokens and NFTs held by each wallet. Every transaction detail is meticulously documented and NFT metadata is fully extractable. While such details can be viewed by everyone, users can be assured that their private keys will remain private even during the snapshots.

Why Are Snapshots Taken?

So, why exactly are snapshots taken in the crypto space? 

There are various reasons as to why snapshots are taken, the most common being to incentivize loyal users through airdrop events. For example, a crypto project that’s releasing its token may choose to do so through a community airdrop in which it rewards community members who have previously contributed to its ecosystem through meaningful actions. The fairest way to determine who they are is to take a snapshot. In this case, users who complete more meaningful actions will be awarded more points, which in turn translates to a higher number of tokens received during the airdrop. 

Snapshots might not be the first thing that comes to mind when you think of blockchain hard forks, but they play a vital role in recording the birth of a new chain. Basically, a snapshot marks the block height where the main chain will be recorded before the fork takes place. 

Take Bitcoin Cash, for example. When it underwent a hard fork on Aug 1, 2017, every address that held Bitcoin at block 478,558 also had its balance replicated onto the new Bitcoin Cash blockchain. This allows both new and old chains to share the same historical data up until the split occurs. Once the split happens, each chain will operate on its own, creating an independent network. 

Snapshots are also commonly used to ensure that users meet all requirements set out by crypto projects in their IDOs. The snapshot helps to maintain fairness, and ensures that only those who follow the rules are rewarded by the crypto project.

How Do Snapshot Rules Apply to Bybit Web3 IDO 2.0?

Bybit's Web3 IDO 2.0 introduces refined guidelines to boost the likelihood of initial token allocations, offering participants the opportunity to secure their preferred tokens at enticing pre-launch prices. The selection process relies on smart contracts for a fair and randomized ticket distribution.

In this upgraded version, participants accumulate scores that are converted into lottery tickets in which a higher score increases the probability of securing a token. Unlike its predecessor (Bybit Web3 IDO), IDO 2.0 doesn’t require a minimum asset balance to join. Scoring tasks are now automatically computed using historical data from participants' accounts. Additionally, assets staked in Bybit Web3 are considered in the snapshot calculations, although the specific range for asset snapshots will differ by project.

Disclaimer: The smart contract addresses listed here are solely for currency identification and snapshot purposes. Please ensure you deposit your assets into your Bybit Cloud Wallet. Assets sent to the smart contract addresses below will not be retrievable.

The Bottom Line

Snapshots are a great way for crypto projects to ensure fair distribution, and that the criteria they’ve specified have been met by users who join their airdrops and IDOs. Since all of the information is publicly available, no one can assert that the tokens are being given out unfairly. 

If you’re looking to get a piece of the pie and gain early access to crypto projects, just head over to the Bybit Web3 IDO portal and take a look at the promising projects available. Just be sure that you sign up for a Bybit account, create your Bybit Cloud Wallet and subscribe to the IDO.

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