Source of article repost: Foresight News

Points and airdrops are dead; more accurately, they can no longer achieve their intended effects. It's time to rethink the goals of points and 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 marked 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, exploiting 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 genuine community.

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

  • Delayed TGE and Depreciated Points: Many projects initially offered points with the promise that they could be exchanged for tokens in the future. However, frequent TGE delays frustrate users, leading to point accumulation beyond initial predictions, thus diluting their value. If the future value of these points is unclear, they become nothing more than unsecured IOUs, undermining community participation.

  • Exchange Listing Challenge: Points are often promoted as the expectation for tokens to be listed 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 Dilution of Rewards: Airdrops were once a way to reward early loyal users, but are now exploited by airdrop witches using multiple wallets solely to obtain rewards. While these activities may temporarily boost on-chain metrics, they ultimately dilute the rewards for genuine users, deviating from the original intent of building a loyal community.

  • Controversial Analytical Tools: Some projects use on-chain analysis to combat airdrop mining behavior, but these measures may incorrectly identify real users. Coupled with uncontrolled airdrop exploitation, this may ultimately harm the project's reputation, creating an environment where loyal users feel neglected while speculators benefit.

  • Conflicts of Interest: Situations of internal manipulation (team members or insiders using internal information for gain) 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 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 competitive spaces where users have multiple choices. Culture can become a differentiating factor for 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 contribute to achieving a common goal.

3. Combine project milestones with points and airdrops

Link rewards to key project milestones so that as the project develops, community rewards increase accordingly. This structure allows users to engage in the project's success and fosters a sense of shared progress.

4. Create a tiered reward system

Design a reward structure that offers 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 provides users with reasons for continued participation, allowing them to feel the rewards of early and sustained involvement.

By shifting the focus from tokens to genuine community coordination, projects can not only cultivate users but also develop advocates. After all, the most successful communities are built on shared culture, goals, and trust. Users gain sustainable rewards, projects have loyal communities, ultimately achieving a win-win.