What Is Points Program?

A points program is a quantifiable reward mechanism that protocols use to allocate future airdrops based on user activity. Instead of airdropping tokens immediately, projects assign points for actions like trading, providing liquidity, staking, or using testnet features. These points accumulate in user accounts and convert to actual tokens when the protocol launches its token-generation-event (TGE) or conducts a retroactive-airdrop.

Points programs serve as a transparent alternative to snapshot-based airdrops. Rather than taking a single snapshot at an unknown date and rewarding past users, points programs let you track your eligibility in real-time. Arbitrum's early incentive program awarded points for testnet activity before their $ARB airdrop. Hyperliquid similarly distributed points based on trading volume and order book contributions before token launch. This approach reduces the surprise factor—you know exactly how many points you've earned and can calculate expected token allocation.

For airdrop farmers, points programs create extended farming windows with measurable progress. Unlike traditional airdrops where you either qualify or don't, points programs reward consistency and volume. High-frequency traders earn more points. Users who provide liquidity consistently across multiple pools accumulate higher totals. This incentivizes sustained protocol engagement rather than one-time interactions.

Protocols value points programs because they create verifiable, fair distributions resistant to sybil-attacks. Each point earned represents measurable on-chain behavior difficult to fake without genuine usage costs (gas fees, real capital at risk). The conversion rate from points to tokens is usually disclosed in advance, though sometimes modified at token launch based on total points issued.

Always verify a points program's eligibility-criteria before farming—some protocols exclude certain wallet types, geographic regions, or require minimum holding periods. Track your points across DAO dashboards and protocol websites regularly, as bugs or cutoff dates occasionally affect balances.