Bankless What's The Point Of Points? The Next Phase of Airdrops
Jan 31, 2024
Explore the intriguing world of points in cryptocurrency! Uncover why projects are adopting points programs and whether they could transform into tokens. Delve into the economics of airline miles and their complexities, plus the rise of innovative systems like Frientech for user engagement. Legal challenges and regulatory scrutiny loom large as creators balance incentives with compliance. Discover how points might reshape the future of token distribution and user access in the evolving digital landscape.
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Points as Centralized Incentives
- Crypto projects are using centralized databases to issue points, similar to traditional loyalty programs.
- These points represent a right, but not an obligation, for the issuer to redeem them for future tokens.
Real-World Value of Airline Miles
- American Airlines points are worth approximately 1.7 cents each, based on secondary market valuations.
- A user with 3,000 points would have about $51 worth, but buying those points would cost double.
Friendtech and the Rise of Points
- Friendtech popularized points by distributing them based on user activity and ETH holdings, leading to speculation about a future token.
- This sparked a trend of other projects implementing point systems, like Blur.