Lockdrop is a fundraising mechanism used in the cryptocurrency space where participants temporarily lock or deposit their tokens into a smart contract to receive a new cryptocurrency in return. This process typically lasts for a predetermined period.During the lockdrop, users give up the ownership of their tokens for a specified duration. In exchange, they are rewarded with newly minted tokens from the project initiating the lockdrop. This approach is often seen as a fair way to distribute tokens while building a community around the new project.Lockdrops encourage participants to display commitment and support for the project by engaging in this locking process. The mechanism can also help the new project gauge interest and attract a diverse group of early adopters. At the end of the lockdrop period, participants usually regain access to their original tokens while receiving the new tokens, allowing for a dual benefit of continued token value and new holdings.