Points and airdrops are dead; more accurately, they are no longer achieving the intended 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 the community and reward true contributors. However, they have now become a checkbox in almost every project launch plan. As a result, the goals of 'community building' and 'rewarding contributors' have not been achieved; instead, professional 'airdrop hunters' have flooded in, taking advantage of these systems for personal gain. Projects invest resources in airdrops, only to face FUD and token dumping. This creates a lose-lose situation, benefiting neither the project nor the true community.
The deep-rooted reasons for the current lose-lose situation are as follows:
Delayed TGE and devalued points: Many projects initially offered points, promising future redemption for tokens. However, frequent TGE delays can frustrate users, leading to point accumulation exceeding initial predictions, 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 promise for tokens to be listed on major exchanges. However, as listings become increasingly difficult to guarantee, community trust in these systems gradually diminishes, undermining user interest and participation.
Airdrop mining dilutes rewards: Airdrops were once a way to reward early loyal users but are now exploited by airdrop witches using multiple wallets, who only seek rewards. While these activities may temporarily boost on-chain metrics, they ultimately dilute the rewards for real users, deviating from the original intent of building a loyal community.
Controversial analytics tools: Some projects use on-chain analytics to combat airdrop mining behavior, but these measures may mistakenly identify genuine users. Coupled with uncontrolled airdrop abuse, this can ultimately harm the project’s reputation, creating an environment where loyal users feel neglected and speculators benefit.
Conflicts of interest: Instances of internal exploitation (team members or insiders using insider information for gain) can create distrust within the community and undermine the project's credibility.
How to improve point and airdrop systems?
What is the true purpose of points and airdrops? I believe their core objective should be to unite the community around a common 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 options. Culture can be a differentiating factor in attracting true participants.
2. Set a unified goal for the community
Coordinate the community around a clear overarching goal, making it a shared mission so that community members see their efforts contribute to achieving the common goal.
3. Combine project milestones with points and airdrops
Link rewards to key milestones of the project so that as the project develops, the community's rewards will also increase. This structure involves users in 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), medium-term rewards (i.e., profit sharing), and long-term loyalty incentives (i.e., voting rights and reputation). This approach gives users a reason for continued participation, making them feel the rewards of early and ongoing involvement.
By shifting the focus from tokens to genuine community coordination, projects can not only cultivate users but also foster 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 situation is achieved.