How Crypto Airdrop Points Programs Work

What Are Points Programs?

Points programs are structured pre-token incentive systems. A protocol tracks user activity—deposits, trades, referrals—and awards visible points for each qualifying action. When the project launches its token, accumulated points convert into a token allocation at a ratio determined at TGE.

The shift started in late 2023. Blur pioneered the model in NFT trading by running consecutive “seasons” where users earned points for listing and bidding, later converting to BLUR tokens. EigenLayer adopted the approach for restaking. By mid-2024, nearly every major pre-token protocol ran a points program.

Projects prefer points over surprise airdrops for three reasons: user retention (farmers stay active to accumulate more), measurable engagement (protocols optimize which behaviors to incentivize), and anti-Sybil filtering (sustained capital deployment is harder to fake than one-time transactions).

For farmers, points introduce both clarity and complexity. You know exactly what earns rewards, but you also compete against every other participant for a finite token allocation. The dynamics resemble a public auction more than a lottery.

How Points Accumulate

Points programs use four primary accumulation mechanics, often in combination:

TVL-Based Points

Deposit assets into the protocol and earn points proportional to your balance over time. EigenLayer awarded 1 point per ETH restaked per hour. Larger deposits earn more, and duration compounds the total. This is the most capital-intensive model.

Activity-Based Points

Earn points per transaction, per trade, or per dollar of volume. Hyperliquid rewarded trading activity—the more you traded, the more points you accumulated. DEXs and perpetual exchanges typically favor this model.

Referral-Based Points

Earn a percentage (usually 10–20%) of every point your referrals generate. Referral loops can multiply your effective earning rate. Some programs stack multiple referral tiers—your referral's referral also earns you a smaller cut.

Time-Weighted Points

Early participants earn points at a higher rate than latecomers. Some programs explicitly decay the earning rate over time. Others achieve the same effect by increasing total points outstanding while keeping rewards constant, diluting later entrants.

Most programs combine two or three of these mechanics. Ethena's shard system rewarded both stablecoin minting (TVL) and liquidity provision (activity), with a referral multiplier on top. Understanding which mechanic is weighted heaviest determines where to allocate your capital.

Points → Token Conversion

Conversion happens at TGE. The project announces what percentage of token supply goes to points holders, and your allocation equals your share of total points issued.

Historical Conversion Examples

Hyperliquid (HYPE): Allocated 31% of supply to points holders. Power traders received six-figure allocations. The generous ratio reflected a community-first ethos with no VC investors to dilute the distribution.
EigenLayer (EIGEN): Reserved 15% of supply for stakedrop recipients. Points earned through restaking ETH over 6+ months. Large restakers with early entry received the biggest allocations.
Ethena (ENA): Distributed 5% of supply via shard campaigns. Multiple seasons with increasing difficulty. Early season participants earned significantly more per dollar deployed than later seasons.

The formula is simple: your_tokens = (your_points / total_points) × airdrop_supply. Two variables you cannot control: total points issued (grows as more users join) and the percentage of supply allocated (set by the team).

This means a program that looks lucrative at launch can become diluted if millions of dollars flow in. Early entry matters. A $10,000 deposit in week 1 of a points program often earns more than a $50,000 deposit in month 6.

Active Points Programs to Watch

Points programs in 2026 span several DeFi verticals. Rather than naming specific projects that will rotate, here are the categories producing the most active programs:

Restaking & Liquid Restaking

Protocols building on EigenLayer and competing restaking networks continue running points. Capital lockup requirements are high but so are historical conversion values. These programs favor patient, large-balance depositors.

L2 Networks

Pre-token L2s use points to incentivize bridge activity, protocol usage, and ecosystem growth. Base and several newer rollups run programs rewarding on-chain activity across their native protocols.

Lending & Borrowing

DeFi lending protocols without tokens run points for depositors and borrowers. These often reward both sides of the market, with deposit points and borrow points accumulating simultaneously.

Perpetual DEXs

Trading-focused protocols reward volume and open interest. Following Hyperliquid's success, multiple perpetual exchanges launched points programs targeting active traders. These favor high-frequency participants over passive depositors.

Check trending airdrops for the latest active programs with the highest community engagement, and see which have confirmed token launches.

Strategies for Maximizing Points

Enter Early

The first weeks of a points program offer the best per-dollar return. Total points outstanding is low, your share is proportionally larger, and early multipliers often apply. Pair these strategies with our farming guide for step-by-step execution. Monitor project announcements and deploy capital within the first 48 hours of a program launch.

Stack Across Protocols

Some DeFi positions earn points from multiple protocols simultaneously. Depositing into a liquid staking protocol that then gets deposited into a lending market can earn you points from both. This capital-efficient approach doubles or triples your effective point rate.

Leverage Referrals

A referral earning you 10% of a friend's points is free additional allocation. Active crypto communities, Discord groups, and farming circles all trade referral codes. Ten referrals depositing $5,000 each effectively adds $5,000 in virtual TVL to your point accumulation.

Monitor Dilution

Track total TVL and user growth in the protocol. If both are expanding rapidly, your per-point value is declining. Some programs publish dashboards with total points issued—use this to estimate your share and decide whether to stay or move capital elsewhere.

Points Program Red Flags

No TGE Timeline

Programs running for 12+ months with no TGE announcement or even a vague timeline are extracting TVL metrics without commitment. Your capital sits locked earning points that may never convert. If the team dodges timeline questions repeatedly, treat it as a warning.

Retroactive Rule Changes

Some programs have changed point allocation rules mid-season, devaluing previously earned points or introducing new categories that dilute existing holders. Review whether the protocol has modified its terms before. Consistency in program mechanics signals team reliability.

Unclear Conversion Mechanics

If the project hasn't specified what percentage of supply goes to points holders, you're farming blind. For more warning signs, read our airdrop safety guide. Programs that explicitly state “X% of supply will be distributed to point holders” carry less risk than those with vague promises of “rewarding early users.”

Excessive Dilution Events

Watch for programs that keep adding “bonus point” campaigns, partner integrations, or surprise multiplier events. Each addition increases total points outstanding and dilutes your share. A program that doubled its points supply three times in six months is not farmer-friendly.

Frequently Asked Questions

How do points convert to tokens?

Each protocol sets its own conversion formula at TGE. Typically, a percentage of total token supply (5–15%) is reserved for points holders, and your share equals your points divided by total points issued. Hyperliquid allocated 31% of HYPE supply to points holders—an unusually generous ratio.

Can points expire or get revoked?

Most programs do not expire points, but some have introduced seasons or epochs that reset balances. A few protocols have revoked points from wallets detected as Sybil or wash-trading. Read the terms carefully—especially around prohibited activity that can disqualify your allocation.

Is it better to concentrate on one protocol or spread across many?

Concentration maximizes your allocation from a single program but exposes you to the risk of that program underperforming. Spreading across 3–5 programs balances the risk while still generating meaningful allocations. Capital-constrained farmers should concentrate; larger portfolios should diversify.

Find Active Points Programs

Browse airdrops with live points programs and start accumulating.

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This content is for informational purposes only and does not constitute financial advice. Always do your own research (DYOR) before participating in any airdrop or DeFi protocol.