Definition
A points program is a crypto-native reward system where a project tracks user activity and assigns points instead of immediately distributing tokens or other assets. These points are usually off-chain records or simple balances that represent a user’s engagement, such as trading, providing liquidity, or interacting with a protocol. Unlike tokens, points typically cannot be transferred or traded, and they mainly serve as an internal scoring mechanism. Projects may later use these scores to decide who qualifies for benefits like an airdrop or access to special features.
In many DeFi, NFT, and Metaverse ecosystems, points programs function as a way to measure and recognize early or loyal participation. They allow teams to experiment with incentives and community growth without committing to a fixed token design from day one. Participants often treat accumulated points as a signal that they might receive future rewards, although this is not guaranteed. The exact rules, value, and future use of points are determined by each individual project.
In Simple Terms
A points program is like a running scoreboard for how much someone has used or supported a crypto project. People earn points by doing things the project wants to encourage, such as using a DeFi app, trading, or joining NFT-related activities. The points themselves usually do not have direct cash value and cannot be sold on an exchange. However, they are often watched closely because they may influence who gets future airdrops, special NFT access, or other community rewards.