diff --git a/packages/hardhat/contracts/RentToOwn.sol b/packages/hardhat/contracts/RentToOwn.sol
index bfe18e6..8dd6171 100644
--- a/packages/hardhat/contracts/RentToOwn.sol
+++ b/packages/hardhat/contracts/RentToOwn.sol
@@ -2,10 +2,17 @@
 pragma solidity ^0.8.19;
 
 import "@openzeppelin/contracts/token/ERC721/IERC721.sol";
-import "./security/ReentrancyGuard.sol";
+import "@openzeppelin/contracts/token/ERC20/IERC20.sol";
+import "@openzeppelin/contracts/token/ERC20/utils/SafeERC20.sol";
+import "@openzeppelin/contracts/utils/cryptography/MerkleProof.sol";
+import "@openzeppelin/contracts/utils/Address.sol";
 import "@openzeppelin/contracts/access/Ownable.sol";
+import "./security/ReentrancyGuard.sol";
 
 contract RentToOwn is ReentrancyGuard, Ownable {
+    using Address for address;
+    using SafeERC20 for IERC20;
+
     struct Agreement {
         address borrower;
         address lender;
@@ -18,7 +25,16 @@ contract RentToOwn is ReentrancyGuard, Ownable {
         bool isActive;
     }
 
+    struct AirdropClaim {
+        address tokenContract;
+        uint256 amount;
+        bytes32 merkleRoot;
+        uint256 expiryTime;
+    }
+
     mapping(uint256 => Agreement) public agreements;
+    mapping(bytes32 => AirdropClaim) public airdrops;
+    mapping(uint256 => mapping(bytes32 => bool)) public claimedAirdrops;
     uint256 public agreementCounter;
 
     event AgreementCreated(
@@ -32,6 +48,20 @@ contract RentToOwn is ReentrancyGuard, Ownable {
     event PaymentMade(uint256 agreementId, uint256 amount, uint256 remaining);
     event AgreementCompleted(uint256 agreementId, address newOwner);
     event AgreementDefaulted(uint256 agreementId);
+    event AirdropRegistered(
+        bytes32 indexed airdropId,
+        address tokenContract,
+        uint256 amount,
+        bytes32 merkleRoot
+    );
+    event AirdropClaimed(
+        uint256 indexed agreementId,
+        address indexed borrower,
+        uint256 nftId,
+        address tokenContract,
+        uint256 amount,
+        bytes32 indexed airdropId
+    );
 
     constructor(address initialOwner) Ownable(initialOwner) {}
 
@@ -142,7 +172,7 @@ contract RentToOwn is ReentrancyGuard, Ownable {
 
         // Transfer NFT back to lender
         IERC721(agreement.nftContract).transferFrom(
-            agreement.borrower,
+            address(this),
             agreement.lender,
             agreement.nftId
         );
@@ -151,9 +181,78 @@ contract RentToOwn is ReentrancyGuard, Ownable {
         emit AgreementDefaulted(_agreementId);
     }
 
-    // View remaining balance
+    // Register new airdrop
+    function registerAirdrop(
+        address tokenContract,
+        uint256 amount,
+        bytes32 merkleRoot,
+        uint256 duration
+    ) external onlyOwner {
+        bytes32 airdropId = keccak256(abi.encodePacked(
+            tokenContract,
+            amount,
+            merkleRoot,
+            block.timestamp
+        ));
+
+        airdrops[airdropId] = AirdropClaim({
+            tokenContract: tokenContract,
+            amount: amount,
+            merkleRoot: merkleRoot,
+            expiryTime: block.timestamp + duration
+        });
+
+        emit AirdropRegistered(airdropId, tokenContract, amount, merkleRoot);
+    }
+
+    // Claim airdrop
+    function claimAirdrop(
+        uint256 agreementId,
+        bytes32 airdropId,
+        bytes32[] calldata merkleProof
+    ) external nonReentrant {
+        Agreement storage agreement = agreements[agreementId];
+        AirdropClaim storage airdrop = airdrops[airdropId];
+
+        require(agreement.isActive, "Agreement not active");
+        require(agreement.borrower == msg.sender, "Not the borrower");
+        require(!claimedAirdrops[agreementId][airdropId], "Airdrop already claimed");
+        require(block.timestamp <= airdrop.expiryTime, "Airdrop expired");
+
+        // Verify merkle proof
+        bytes32 leaf = keccak256(abi.encodePacked(agreementId, msg.sender));
+        require(
+            MerkleProof.verify(merkleProof, airdrop.merkleRoot, leaf),
+            "Invalid merkle proof"
+        );
+
+        // Mark as claimed
+        claimedAirdrops[agreementId][airdropId] = true;
+
+        // Transfer tokens
+        IERC20(airdrop.tokenContract).safeTransfer(msg.sender, airdrop.amount);
+
+        emit AirdropClaimed(
+            agreementId,
+            msg.sender,
+            agreement.nftId,
+            airdrop.tokenContract,
+            airdrop.amount,
+            airdropId
+        );
+    }
+
+    // Helper functions
     function getRemainingBalance(uint256 _agreementId) external view returns (uint256) {
         Agreement storage agreement = agreements[_agreementId];
         return agreement.totalPrice - agreement.totalPaid;
     }
+
+    function isAirdropClaimed(uint256 agreementId, bytes32 airdropId)
+    external
+    view
+    returns (bool)
+    {
+        return claimedAirdrops[agreementId][airdropId];
+    }
 }
diff --git a/packages/hardhat/contracts/test/MockER20.sol b/packages/hardhat/contracts/test/MockER20.sol
new file mode 100644
index 0000000..3600e03
--- /dev/null
+++ b/packages/hardhat/contracts/test/MockER20.sol
@@ -0,0 +1,10 @@
+// SPDX-License-Identifier: MIT
+pragma solidity ^0.8.19;
+
+import "@openzeppelin/contracts/token/ERC20/ERC20.sol";
+
+contract MockERC20 is ERC20 {
+    constructor(string memory name, string memory symbol) ERC20(name, symbol) {
+        _mint(msg.sender, 1000000 * 10 ** 18);
+    }
+}
diff --git a/packages/hardhat/test/RentToOwn.ts b/packages/hardhat/test/RentToOwn.ts
index 306a246..27b66fe 100644
--- a/packages/hardhat/test/RentToOwn.ts
+++ b/packages/hardhat/test/RentToOwn.ts
@@ -2,12 +2,14 @@ import { expect } from "chai";
 import { ethers } from "hardhat";
 import { MyNFT, RentToOwn } from "../typechain-types";
 import { SignerWithAddress } from "@nomicfoundation/hardhat-ethers/signers";
+import { ContractTransactionReceipt, EventLog } from "ethers";
 
 describe("RentToOwn", function () {
   let rentToOwn: RentToOwn;
   let rentToOwnAddress: any;
   let myNFT: MyNFT;
   let myNFTAddress: any;
+  let mockToken: any;
   let lender: SignerWithAddress;
   let borrower: SignerWithAddress;
   let tokenId: any; //BigNumberish //import { BigNumberish } from "ethers";
@@ -95,4 +97,70 @@ describe("RentToOwn", function () {
       ).to.be.revertedWith("Payment is late");
     });
   });
+
+  describe("Airdrop functionality", function () {
+    let merkleRoot: string;
+    let merkleProof: string[];
+    let airdropId: string;
+
+    beforeEach(async function () {
+      // Deploy mock ERC20 token for airdrop testing
+      const MockERC20Factory = await ethers.getContractFactory("MockERC20");
+      mockToken = await MockERC20Factory.deploy("Mock Token", "MTK");
+      await mockToken.waitForDeployment();
+
+      // Setup existing agreement like in other tests
+      await myNFT.connect(lender).approve(rentToOwnAddress, tokenId);
+      await rentToOwn.connect(lender).listNFT(myNFTAddress, tokenId, monthlyPayment, 12 as any);
+      await rentToOwn.connect(borrower).startAgreement(0 as any, { value: monthlyPayment } as any);
+
+      // Create merkle root and proof (simplified for testing)
+      const agreementId = 0n;
+      const leaf = ethers.keccak256(ethers.solidityPacked(["uint256", "address"], [agreementId, borrower.address]));
+      merkleRoot = leaf;
+      merkleProof = [];
+
+      // Register airdrop
+      const amount = ethers.parseEther("100");
+      const duration = 86400n;
+      const tx = await rentToOwn
+        .connect(lender)
+        .registerAirdrop(await mockToken.getAddress(), amount as any, merkleRoot as any, duration as any);
+
+      const receipt = (await tx.wait()) as ContractTransactionReceipt;
+      if (!receipt) throw new Error("No receipt available");
+
+      const registeredEvent = receipt.logs[0] as EventLog;
+      if (!registeredEvent) throw new Error("AirdropRegistered event not found");
+      airdropId = registeredEvent.args[0];
+
+      // Fund contract with airdrop tokens
+      await mockToken.transfer(rentToOwnAddress, amount);
+    });
+
+    it("Should register new airdrop", async function () {
+      const airdrop = await rentToOwn.airdrops(airdropId as any);
+      expect(airdrop.tokenContract).to.equal(await mockToken.getAddress());
+    });
+
+    it("Should allow borrower to claim airdrop", async function () {
+      const initialBalance = await mockToken.balanceOf(borrower.address);
+      await rentToOwn.connect(borrower).claimAirdrop(0n as any, airdropId as any, merkleProof as any);
+      const finalBalance = await mockToken.balanceOf(borrower.address);
+      expect(finalBalance).to.be.gt(initialBalance);
+    });
+
+    it("Should prevent double claiming", async function () {
+      await rentToOwn.connect(borrower).claimAirdrop(0n as any, airdropId as any, merkleProof as any);
+      await expect(
+        rentToOwn.connect(borrower).claimAirdrop(0n as any, airdropId as any, merkleProof as any),
+      ).to.be.revertedWith("Airdrop already claimed");
+    });
+
+    it("Should prevent non-borrowers from claiming", async function () {
+      await expect(
+        rentToOwn.connect(lender).claimAirdrop(0n as any, airdropId as any, merkleProof as any),
+      ).to.be.revertedWith("Not the borrower");
+    });
+  });
 });
diff --git a/packages/nextjs/app/borrow/page.tsx b/packages/nextjs/app/borrow/page.tsx
index 538bb52..fa6524b 100644
--- a/packages/nextjs/app/borrow/page.tsx
+++ b/packages/nextjs/app/borrow/page.tsx
@@ -84,7 +84,7 @@ export default function BorrowPage() {
     <div className="container mx-auto px-4 py-8">
       <h1 className="text-3xl font-bold mb-8">NFT Rent-to-Own Agreements</h1>
 
-      <SkipTimeComponent />
+      {/*<SkipTimeComponent />*/}
 
       <h2 className="text-2xl font-bold mb-6 mt-6">Available Agreements</h2>
       {isLoading && <p>Loading agreements...</p>}
diff --git a/packages/nextjs/app/layout.tsx b/packages/nextjs/app/layout.tsx
index b8d2d47..9d6808f 100644
--- a/packages/nextjs/app/layout.tsx
+++ b/packages/nextjs/app/layout.tsx
@@ -4,7 +4,7 @@ import { ThemeProvider } from "~~/components/ThemeProvider";
 import "~~/styles/globals.css";
 import { getMetadata } from "~~/utils/scaffold-eth/getMetadata";
 
-export const metadata = getMetadata({ title: "Scaffold-ETH 2 App", description: "Built with 🏗 Scaffold-ETH 2" });
+export const metadata = getMetadata({ title: "Rent2Own", description: "Rent NFTs" });
 
 const ScaffoldEthApp = ({ children }: { children: React.ReactNode }) => {
   return (