Why Points and Airdrops Have Become Ineffective?

Initially, points and airdrops were designed to build communities and reward genuine contributors. However, they’ve now become such standard practices that they’re almost a checkbox on every project’s launch plan. As a result, “community building” and “rewarding contributors” are no longer accomplished. Instead, professional “airdrop farmers” have entered the scene, exploiting these systems for personal gain. Projects pour resources into airdrops only to be met with FUD and token dumping. It’s a lose-lose situation, benefiting neither the project nor the real community members.

Also there are some deep reasons and challenges contributed to the current lose-lose situation:

1. Delayed TGEs and Devalued Points: Many projects initially offer points with the promise of future token conversions. But frequent TGE delays frustrate users, causing points to accumulate beyond initial projections, thereby diluting their value. Without clarity on these points’ future worth, they become little more than IOUs with uncertain value, weakening community engagement.
2. Exchange Listing Challenges: Points are often promoted with the expectation of token listings on major exchanges. However, as listings become harder to secure, trust in these systems erodes, dampening user interest and engagement.
3. Airdrop Farming Dilutes Rewards: Airdrops, once a way to reward early and loyal users, are now exploited by farming operations using multiple wallets solely to capture rewards. While these activities may temporarily boost on-chain metrics, they ultimately dilute rewards for genuine users and stray from the original intent of building a loyal community.
4. Controversial Analytics Tools: Some projects use on-chain analytics to combat farming, but these measures risk misidentifying real users. This, combined with unchecked farming, can harm project reputations, creating an environment where loyal users feel undervalued while opportunists benefit.
5. Conflict of interest: Instances of insider farming—where team members or insiders exploit their knowledge for rewards—create distrust within the community and undermine the project’s credibility.

How to make the changes?

What’s the real purpose behind points systems and airdrops? I believe their core goal should be to unite the community around a shared vision, not foster a culture of competition(PvP).

1. Launch a Culture, Not Just a Product

A project should have a clear cultural identity that resonates with its community. Establishing this unique cultural connection is key, especially in a competitive space where users have multiple choices. Culture can be the differentiator that attracts genuine engagement.

1. Set a Unified Goal for the Community

Align the community around a clear, overarching goal. Make it a shared mission, not just a product feature, so that members see their efforts contributing to a common purpose.

1. Integrate Project Milestones with Points and Airdrops

Link rewards to the project’s key milestones so that as the project grows, so do the rewards for the community. This structure gives users a stake in the project’s success and fosters a sense of shared progress.

1. Create a Tiered Rewards System

Design a rewards structure that offers short-term incentives(i.e.lucky draw), medium-term rewards(i.e.profit sharing), and long-term loyalty benefits(i.e. voting power and reputation power ). This approach gives users ongoing reasons to remain engaged, making them feel appreciated for both early and sustained participation.

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