Crypto Points
A new web3 trend is making waves: the “crypto points” system. Similar to traditional rewards programs like bank rewards or airline miles, points system are used by web3 projects to incentivize and reward their users.
Here’s how it works: Users earn points for performing specific tasks on a platform. These points can potentially lead to airdrops or other incentives, almost like a trial run before the official launch of a token.
The points system offers several opportunities:
- It’s a clever way for crypto projects to test their offerings without attracting immediate regulatory scrutiny.
- It encourages deeper user engagement, providing a method to reward genuine usage.
- It changes the way people interact with crypto assets, allowing users to earn points instead of selling tokens to buy tokens, hence circumventing tax concerns.
However, challenges and uncertainties lie ahead:
- The control of converting points into tokens lies with the issuer, not the user.
- While points offer a safer option for crypto projects, users have fewer protections and no guaranteed rights compared to tokens.
- There’s a potential for misuse, such as promising points with no intention of ever releasing a token.
Looking forward, crypto points could evolve in two main ways: they could transform into tokens, or provide value within their own ecosystems. The ideal scenario might be a mix of in-app usage points and tokens offering real investment and governance opportunities.
The points system is still in its infancy, but there’s a lot of optimism about its potential. How do you see the points system shaping the future of incentivization?
