Article source: Foresight News
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?
Initially, points and airdrops were meant to build communities and reward genuine contributors. However, they have now become a standardized checklist item that almost every project launching plans to tick. 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 their own benefit. 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-win situation are as follows:
Delayed TGE and devalued points: Many projects initially offer points and promise future token redemption. However, frequent TGE delays can frustrate users, leading to point accumulation exceeding initial forecasts, thus diluting their value. If the future value of these points is unclear, they merely become unsecured IOUs, weakening community participation.
Exchange listing challenge: Points are often promoted as the expectation of tokens being listed on major exchanges. However, as listings become increasingly difficult to guarantee, community trust in these systems gradually weakens, thereby diminishing user interest and participation.
Airdrop mining dilutes rewards: Airdrops were once a way to reward early loyal users, but now they are exploited by airdrop witches using multiple wallets, who only seek to obtain rewards. While these activities may temporarily boost on-chain metrics, they ultimately dilute the rewards of genuine users, deviating from the original intention 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 farming behavior, this may ultimately damage the project's reputation, creating an environment where loyal users feel neglected while speculators benefit.
Conflict of interest: Situations of internal manipulation (team members or insiders using inside information for gains) can 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 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. Building this unique cultural connection is key, especially in competitive spaces 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 common mission so that community members see their efforts contributing to achieving a shared objective.
3. Combine project milestones with points and airdrops
Link rewards to key project milestones so that as the project progresses, the community's rewards increase accordingly. This structure allows users to be involved 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 ongoing participation, allowing them to feel the rewards of early and sustained involvement.
By shifting focus from tokens to genuine 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 returns, and projects have loyal communities, ultimately achieving a win-win situation.