The points system is dead, and airdrops have vanished!
By shifting the focus from tokenization to genuine community alliances, the project can not only cultivate users but also foster advocates.Or more accurately, it has failed to achieve the expected results.
Now it's time to rethink why we should do this and how to make it more effective.
Why have points and airdrops failed?
Initially, points and airdrops were intended to build community and reward genuine contributors. However, they have now become standard practice, almost a checkbox on every project launch plan. As a result, "community building" and "rewarding contributors" are no longer fulfilled. Instead, professional "airdrop farmers" have entered the scene, exploiting these systems for personal gain. Projects invest resources into airdrops, only to face FUD and token dumping. This creates a lose-lose situation, benefiting neither the project nor the genuine community members.
There are also some deeper reasons and challenges contributing to the current stalemate:
1. Delayed TGE and devalued points: Many projects initially offer points and promise future token conversions. However, frequent TGE delays can frustrate users, leading to point accumulation exceeding initial forecasts, thus diluting their value. Without clarity on the future value of these points, they become uncertain IOUs, weakening community engagement.
2. Exchange listing challenges: Points are often expected to increase in value with the anticipation of tokens being listed on major exchanges. However, as listings become increasingly difficult to secure, trust in these systems gradually diminishes, weakening user interest and participation.
3. Airdrop farming dilutes rewards: Airdrops were once a way to reward early loyal users, but now they are exploited by farmers using multiple wallets to gain rewards. While these activities may temporarily boost on-chain metrics, they ultimately dilute the 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 may misidentify real users. Combined with uncontrolled farming, this can damage the project's reputation, creating an environment where loyal users feel undervalued while opportunists benefit.
5. Conflicts of interest: Internal farming situations (where team members or insiders use their knowledge to gain rewards) can create distrust within the community and undermine the project's credibility.
How to make a change?
What is the true purpose behind point systems and airdrops? I believe their core goal should be to unite the community around a shared vision, rather than fostering a competitive culture (PvP).
1. Launch a culture, not just a product
A project should have clear cultural characteristics that resonate with its community. Establishing this unique cultural connection is key, especially in a competitive space where users have multiple choices. Culture can become a differentiating factor that attracts genuine participation.
2. Set a unified goal for the community
Coordinate 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 objective.
3. Link project milestones with points and airdrops
Connect rewards to key milestones of the project, so that as the project progresses, the community's rewards grow as well. This structure allows users to participate in the project's success and fosters a sense of shared progress.
4. Establish a tiered reward system
Design a reward structure that offers short-term incentives (e.g., raffles), mid-term rewards (e.g., profit sharing), and long-term loyalty benefits (e.g., voting rights and reputation). This approach provides users with ongoing reasons to participate, making them feel appreciated for their early and continued involvement.
By shifting the focus from tokenization to genuine community alliances, projects can not only cultivate users but also advocates. After all, the most successful communities are built on a foundation of shared culture, goals, and trust. Users receive sustainable rewards, and projects gain loyal communities, creating a win-win situation for everyone.
