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If you just held LUNA on January 1st do you

qualify for the MARS airdrop? Or did it have to be staked

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No - "LUNA stakers (including bLUNA holders) will receive a one-time distribution of 10,000,000 MARS. The snapshot to determine the group of users who will receive the airdrop was taken on Jan. 1, 2022 (Terra block #5,895,050), meaning that users who were stakers (as defined above) at that time are eligible to receive the airdrop." https://mars-protocol.medium.com/mars-distribution-plan-the-mars-token-launch-lockdrop-and-more-9f6d2dc0995c

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