What is Crypto Points?

Crypto points are a new trend in the web3 space that marks user behavior and can be used to incentivize specific actions, create gamification elements, and serve as a bridge to tokens. They are earned through specific actions, transactions, or participation in loyalty programs and can be redeemed for various rewards, including discounts, products, or exclusive experiences.

Traditional airdrops involve the free distribution of new tokens. Points systems, on the other hand, aim to incentivize specific behaviors and promote engagement within a project's ecosystem.

Key Features

Incentivization: Points systems incentivize specific actions, such as completing tasks, participating in community challenges, or showing appreciation for a project.

Gamification: Points systems often incorporate gamification elements, such as leaderboards, badges, or virtual rewards, to make interacting with the project more engaging. Traditional airdrops do not typically include these elements.

Token Distribution: Points systems can act as a bridge to tokens, allowing users to earn points and then convert or redeem them for tokens at a predetermined exchange rate. Traditional airdrops directly distribute tokens to users.

Why the Points System Get Popular?

Combating Airdrop Farming: Airdrops typically reward early supporters by depositing tokens directly into their wallets. However, airdrop farming can be problematic. Implementing crypto points in airdrops compels farmers to remain active within the ecosystem to reap any financial benefits from these points.

Boosting User Engagement: Crypto points are awarded for activities such as using decentralized applications, engaging in governance, contributing liquidity, or referring new users. This strategy motivates users to interact more with the project, enhancing their overall involvement and investment in its success.

Strengthening Community Ties: Crypto points play a significant role in community development by encouraging users to earn and accumulate points, which fuels greater involvement in discussions, events, and other community-driven activities. This active participation can drive the project’s growth and long-term viability.

Example of Points System

EigenLayer Restaking Points

EigenLayer has introduced a points system called "Restaking Points" to incentivize and reward users who stake their ETH through the protocol. Restaking Points are earned by users who deposit their staked ETH into the EigenLayer protocol. The number of Restaking Points earned is proportional to the amount of ETH staked and the duration for which it is staked. Restaking Points determined eligibility for the recent EIGEN token airdrop, with a minimum threshold required to qualify.