Spread a culture, not just a product.
Written by: Kevin, Co-founder of ZKM and Metis
Compiled by: Luffy, Foresight News
Points and airdrops are dead; more accurately, they can no longer achieve the desired effects. It is time to rethink the goals of point airdrops and how to make them more effective.
Why do points and airdrops fail?
Initially, points and airdrops were meant to build community and reward true contributors. However, they have now become a standard checkbox that is ticked in almost every project launch plan. The result is that the goals of 'community building' and 'rewarding contributors' are not achieved; instead, professional 'airdrop parties' flood in to exploit these systems for personal gain. Projects invest resources into airdrops, only to face FUD and token dumping. This is a lose-lose situation, benefiting neither the project nor the true community.
The deeper reasons for the current lose-lose situation are as follows:
Delay in TGE and devaluation of points: Many projects initially offer points and promise that they can be exchanged for tokens in the future. However, frequent TGE delays can frustrate users, leading to an accumulation of points that exceeds initial predictions, thus diluting their value. If the future value of these points is unclear, they become nothing more than unsecured IOUs, which undermines community engagement.
Exchange listing challenges: Points are often promoted as expectations for tokens to be listed on major exchanges. However, as listings become increasingly difficult to guarantee, community trust in these systems gradually diminishes, thereby weakening user interest and engagement.
Airdrop mining dilutes rewards: Airdrops were once a way to reward early loyal users, but now they are exploited by airdrop hunters using multiple wallets just to obtain rewards. While these activities may temporarily improve on-chain metrics, they ultimately dilute the rewards of genuine users, deviating from the original goal of building a loyal community.
Controversial analytical tools: Some projects use on-chain analysis to combat airdrop mining behavior, but these measures may mistakenly identify real users. Coupled with uncontrolled airdrop hunting behavior, this can ultimately damage a project's reputation, creating an environment where loyal users feel neglected while speculators benefit.
Conflicts of interest: Situations of internal exploitation (team members or insiders using insider information for profit) create distrust within the community and undermine the credibility of the project.
How to improve the point and airdrop system?
What is the true purpose of points and airdrops? I believe their core goal should be to unite the community around a shared vision, rather than fostering a PvP culture.
1. Spread a culture, not just a product
Projects should have clear cultural attributes that resonate with the community. Establishing this unique cultural connection is key, especially in a competitive space where users have multiple choices. Culture can become a differentiating factor in attracting genuine participation.
2. Set unified goals for the community
Coordinate the community around a clear overarching goal, making it a shared mission so that community members see their efforts contributing to achieving a common objective.
3. Combine project milestones with points and airdrops
Link rewards to key milestones of the project, so that as the project progresses, the community's rewards will also increase. This structure allows users to be part of the project's success and fosters a sense of shared progress.
4. Create a tiered reward system
Design a reward structure that provides short-term incentives (i.e., lotteries), mid-term rewards (i.e., profit sharing), and long-term loyalty incentives (i.e., voting rights and reputation). This approach gives users a reason for continuous engagement, allowing them to feel the rewards of early and ongoing participation.
By shifting the focus from tokens to real community coordination, projects can not only cultivate users but also nurture advocates. After all, the most successful communities are built on shared culture, goals, and trust. Users receive sustainable rewards, projects have loyal communities, and ultimately a win-win is achieved.