As Web3 ecosystems continue to evolve, “crypto points” are emerging as a popular tool for incentivizing user activity and fostering community participation. These points are awarded to users for behaviors that benefit a project’s ecosystem — such as providing liquidity, participating in governance, or referring new users — but unlike traditional cryptocurrencies, they typically aren’t recorded on a blockchain or assigned intrinsic value.

Crypto points serve multiple purposes: they discourage speculative airdrop farming by requiring users to remain active within a project, gamify user experiences, and act as a potential bridge to future token distributions. According to recent reports, over 12 crypto projects have distributed more than 40 billion points across thousands of users.

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Why Crypto Points Are on the Rise in Web3

Crypto points offer a more flexible and regulatory-friendly alternative to immediate token airdrops. Developers can use them to build long-term engagement without explicitly promising financial returns. Projects like Rainbow Wallet, Friend.Tech, and Blur are already leveraging points to reward user actions — from swapping assets and referring friends to participating in social and NFT marketplaces.

For users, the appeal lies in the potential that points may eventually convert into tokens or other valuable rewards, while also unlocking community features like governance voting or special “Care Packages.” For projects, it’s a way to cultivate loyalty, encourage adoption, and build sustainable ecosystems.