Points and airdrops are dead; more accurately, they have failed to achieve their intended effects. It is time to rethink the goals of points and airdrops and how to make them more effective.
Why do points and airdrops fail?
Originally, points and airdrops were meant to build community and reward genuine contributors. However, they have now become a standard checkbox in almost every project's launch plan. The result is that the goals of 'community building' and 'rewarding contributors' are not achieved; instead, professional 'airdrop hunters' flood in to exploit these systems for personal gain. Projects invest resources into airdrops, resulting in FUD and token dumping. This is a lose-lose situation, benefiting neither the project nor the genuine community.
The deep-seated reasons for the current lose-lose situation are as follows:
Delayed TGE and depreciating points: Many projects initially offer points with the promise that they can be exchanged for tokens in the future. However, frequent delays in TGE can frustrate users, leading to a buildup of points beyond initial forecasts, thereby diluting their value. If the future value of these points is unclear, they become nothing more than unsecured IOUs, weakening community engagement.
Exchange listing challenges: Points are often promoted as a precursor to token listings on major exchanges. However, as listings become increasingly difficult to guarantee, community trust in these systems gradually diminishes, weakening user interest and participation.
Airdrop mining dilutes rewards: Airdrops used to be a way to reward early loyal users, but now they are exploited by airdrop hunters using multiple wallets solely for rewards. While these activities may temporarily boost on-chain metrics, they ultimately dilute the rewards for genuine users, straying from the original intent of building a loyal community.
Controversial analytics tools: Some projects use on-chain analytics to combat airdrop mining behaviors, but these measures may mistakenly identify genuine users. Coupled with uncontrolled airdrop abuse, this could ultimately damage project reputation, creating an environment where loyal users feel overlooked while speculators benefit.
Conflicts of interest: Situations of internal exploitation (team members or insiders profiting from insider information) create distrust within the community and undermine the project's credibility.
How to improve the points and airdrop system?
What is the true purpose of points and airdrops? I believe their core objective 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 be a differentiating factor to attract genuine participation.
2. Set unified goals for the community
Coordinate the community around a clear overall goal, making it a shared mission so that community members see their efforts contributing to a common objective.
3. Combine project milestones with points and airdrops
Link rewards to key project milestones so that as the project evolves, community returns also increase. This structure engages users in the project's success and cultivates a sense of shared progress.
4. Create a tiered reward system
Design a reward structure that provides short-term incentives (i.e., lottery), 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 participation, allowing them to feel the returns from early and sustained involvement.
By shifting the focus from tokens to genuine community coordination, projects can cultivate not only users but also advocates. After all, the most successful communities are built on shared culture, goals, and trust. Users receive sustainable returns, projects have loyal communities, ultimately achieving a win-win situation.