What is a points programme?
- Author
- CRYPTO PORT Editorial
- Published
- Updated
- Reading time
- 5 min
In short
A points programme displays your usage of a protocol as a points balance, presented as if it indicates a future token allocation. Points are numbers the team controls; neither a conversion rate nor a conversion at all is guaranteed, and calculation rules have been changed retroactively.
Key points
- Displays protocol usage as a points balance
- Points are team-controlled numbers, not a claim
- Neither a conversion rate nor a conversion is promised
- Calculation rules have been changed retroactively
Definition
A protocol-run scheme that awards and displays points for deposits, volume or other activity, often framed as the basis for a future token allocation. In most cases the points are not on-chain assets.
Mechanically, points accrue on the team's servers according to deposit size and duration, trading volume or referrals. In most programmes the points are not recorded on-chain at all; they are rows in a database, which means both the displayed balance and the formula can be changed.
What distinguishes this from a plain airdrop is that the expectation is shown up front. Traditional airdrops revealed eligibility only at distribution; points show a running total. The number feels like progress, but programmes rarely state how many tokens a point is worth. What is displayed is a rank or a share, not an amount.
Concrete problems have occurred: formulas changed with past activity recalculated, multipliers cut for particular usage types, and groups of users excluded from the eventual distribution. Before joining, check that deposited funds can be withdrawn, that the contracts have been audited, and that the position would still make sense if the points came to nothing.
Watch out for
- · A points balance is not a claim; the team can rewrite the formula
- · Funds deposited for points carry contract-bug and withdrawal-freeze risk
- · Fake pages asking you to sign to 'claim points' are common