What are points in crypto?

Think of a store loyalty card, except that instead of your shopping, the app tracks your activity on a Web3 service. A points program may reward trades, crypto deposits, trying out features or inviting friends. Each program defines differently what counts and how many points it awards.

For example, one app might award points based on how much you keep in it and for how long. Another might count the completion of specific actions. Points usually appear in your profile or on a leaderboard. They aren’t necessarily tokens on the blockchain: they may exist only in the service’s database, and transferring them may not be allowed.

Why it matters

For teams building apps, points are a way to attract users and record their participation. For users, they may be tied to access to features, perks or eligibility criteria for an airdrop, i.e. a token distribution. That’s why you’ll also come across the term airdrop points.

However, points on their own are not a promise of tokens. Even if a distribution is announced, there need to be specific rules on who is eligible for a reward and how it is calculated. Twice the points doesn’t necessarily mean twice the tokens. We think it’s essential to separate what the published terms provide for from what the community expects.

What to watch out for

Collecting points can have real costs: network fees, trading fees and time. If it requires depositing funds, you add the risks of the app itself, such as a vulnerability in its smart contract. A counter going up on your screen doesn’t mean your wealth is going up too.

Read whether the terms allow rule changes, point expiry, or account bans for abusive activity. Beware of fake redemption pages, too: a message promising to convert your points into tokens may lead to your wallet being drained. No legitimate program needs your seed phrase (recovery phrase) to award you points.