Written by: Kevin, Co-founder of ZKM and Metis

Compiled by: Luffy, Foresight News

Points and airdrops are dead, or more accurately, they no longer work as intended. It's time to rethink the goals of point airdrops and how to make them more effective.

Why do points and airdrops become invalid?

Initially, points and airdrops were meant to build communities and reward real contributors. However, they have now become a set standard, a checkbox that is checked in almost every project launch plan. As a result, the goals of "community building" and "rewarding contributors" are not achieved; instead, professional "airdrop parties" have flocked in and exploited these systems for their own benefit. Projects have poured resources into airdrops, only to be met with FUD and token dumping. This is a lose-lose situation that benefits neither the project nor the real community.

The deep-seated reasons for the current lose-lose situation are as follows:

  • Delayed TGEs and devalued points: Many projects initially offer points with the promise of being redeemable for tokens in the future. However, frequent TGE delays frustrate users and cause points to accumulate beyond initial projections, diluting their value. If the future value of these points is unclear, they become nothing more than unsecured IOUs, which weakens community engagement.

  • Exchange Listing Challenges: Points are often advertised with the expectation that the token will be listed on major exchanges. However, as listings become increasingly difficult to secure, community trust in these systems erodes, dampening user interest and engagement.

  • Airdrop mining dilutes rewards: Airdrops used to be a way to reward early loyal users, but are now being exploited by airdrop witches who use multiple wallets just to get rewards. While these activities may temporarily improve on-chain metrics, they will ultimately dilute the rewards of real users and deviate from the original intention of building a loyal community.

  • Controversial analysis tools: Some projects use on-chain analysis to combat airdrop mining, but these measures may misidentify real users. Coupled with uncontrolled airdrops, this may ultimately damage the reputation of the project, creating an environment where loyal users feel ignored and speculators benefit.

  • Conflicts of interest: Situations of insider digging (where team members or insiders use inside information to gain rewards) can create distrust within the community and undermine the credibility of the project.

How to improve the points and airdrop system?

What is the real purpose of points and airdrops? I believe their core goal should be to unite the community around a common vision, not to foster a PvP culture.

1. Spread a culture, not just a product

Projects should have a clear cultural identity that resonates with the community. Building this unique cultural connection is key, especially in a competitive space where users have multiple options. Culture can be a differentiating factor that attracts real engagement.

2. Set a unified goal for the community

Align the community around a clear overarching goal and make it a shared mission so that community members see that their efforts contribute to the common goal.

3. Combine project milestones with points and airdrops

Tie rewards to key milestones of the project so that as the project grows, the rewards to the community grow as well. This structure lets users participate in the success of the project and fosters a sense of shared progress.

4. Create a tiered reward system

Design a reward structure that provides short-term incentives (i.e. raffles), mid-term rewards (i.e. profit sharing), and long-term loyalty incentives (i.e. voting rights and reputation). This approach provides users with reasons to continue participating, allowing them to feel rewarded for their early and ongoing participation.

By shifting the focus from tokens to true 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 get sustainable returns, and projects have loyal communities, ultimately achieving a win-win situation.