If you’ve been checking DeFi projects last year, I’m sure you’ve noticed that many projects are using a point system to reward and celebrate active users. Of course, this point-reward system helps to attract new users and make them active. And increase the main key metrics for any DeFi projects, such as TVL, trading volume, liquidity, etc. These point systems are designed to reward users for various activities within these metrics, such as staking, liquidity provision, and referrals, among others. Projects like EigenLayer and Blast utilize point systems as a marketing and strategic tool, which in turn helps in bootstrapping network activity and fostering community growth. So, in this article, let’s take a look at how and why DeFi projects can use point systems to grow. And in the end, I will take a look at a couple of examples. I think this article would be useful for both DeFi projects and DeFi degens, as understanding the motivation behind a project's campaigns and activities will help to build the right DeFi strategy and understand the project's status. This also will help to analyze data the right way so that you can see it on different platforms like CoinGecko, different DEX, and API-integrated tools. If you run a DeFi or crypto project and need advice on marketing and community building, you can always message me directly! Why DeFi projects use point rewards systems: As we spoke earlier, DeFi projects use points as a marketing instrument to reward users in several strategic ways, enhancing user engagement, loyalty, and overall participation within their ecosystems. And here’s why: 1. Token Airdrop Preparation Most of the time, points mean share in the upcoming airdrop. At least, most of the users think so. Sometimes, airdrops are announced as preliminary, but most of the time, users don’t know how much they will finally get. That makes them intrigued and engaged. Some of the projects fuel it up with rumors that they spread among degen chats and influencers. Upcoming airdrop expectation works pretty well. 2. Incentivizing Specific Behaviors Points are awarded to users for engaging in desired activities such as trading, staking, or providing liquidity. This not only boosts platform activity but also helps maintain a healthy and liquid market. 3. Hype and Buzz One of the biggest parts of promotional strategies is to create buzz around the project. For example, by hosting competitions or challenges where points can be earned, projects can increase visibility and attract new users. And, of course, potential airdrops can be a topic to talk about for different KOLs, Twitter accounts, and media. Read more in my article on how Blast successfully did that. 4. Building Community Points foster a sense of community by encouraging users to interact with each other and participate in community goals. This can lead to a more engaged and loyal user base, which is crucial for the long-term success of any DeFi project. 5. Creating a Habit Point system makes users interact with the platform often. In some cases, even every day. It creates a habit and provides a better understanding of platform usage. That means that even after airdrop is done and/or the user needs some actions, he will use this platform even without rewards. 6. Long-term Participation Points can be structured to reward long-term participation, discouraging users from abandoning the platform after receiving initial incentives. This can help maintain a stable and growing user base. 7. Enhancing User Experience through Gamification By incorporating game-like elements such as points, leaderboards, and achievement badges, DeFi projects can make the user experience more enjoyable and engaging. This gamification can lead to increased user retention and more active participation. 8. Regulatory Navigation In some jurisdictions, the regulatory status of tokens can be uncertain. By using points, DeFi projects can engage users and grow their ecosystems without immediately issuing tokens, thus navigating regulatory challenges more effectively. 9. Performance Metrics And, of course, besides the big and active community, DeFi projects need high performance. More users create higher key metrics like TVL, pool liquidity levels, and so on that new potential audiences can see via analytical tools and graphics. High TVL brings more users and hype around the project. And these two factors go one after another. Examples Let’s take a look at projects that use a point system to reward their users as one of the marketing strategies. EigenLayer - This Ether restacking protocol awards points to users for restocking Ethereum or Liquid Staking Tokens (LSTs) within its ecosystem. These points may qualify users for potential airdrops and prioritize them in various protocol activities. Blast - a Layer 2 solution built on Ethereum, employs a point system that rewards users for staking ETH, using dApss, and participating in its referral program. The points accrued can significantly enhance user rewards, including eligibility for airdrops of BLAST tokens. Blur - As an NFT marketplace, Blur introduced a points system to reward users who list and bid on items, as well as those who lend their assets. Friend.Tech - A web3 social networking app that supplies points to users who interact with the platform. These points could potentially convert into tokens in the future. My advice is to check different projects that use the point system as a tool and check how they do it. They all have something in common, but at the same time, many projects use pretty unique point system design. Points serve as a tool in DeFi and crypto marketing strategies, helping projects to incentivize desired behaviors, manage regulatory risks, promote user loyalty, and enhance the overall user experience. This multifaceted approach not only drives user engagement but also supports the growth and sustainability of DeFi projects and its key metrics. P.S. Check out my previous articles on AI at HackerNoon: Top Crypto Trends and Stories of 2024 (so far)
NFT Market Trends In 2024
The Ultimate Breakdown of MemeCoin Promotion
Why Everyone's Talking About Blast: The DeFi & Airdrop
How To Launch and NFT Promotion for Projects in 2024
A Step-by-Step Guide for DeFi Marketing
AI Crypto Coins: When the Power of AI Meets the Blockchain If you’ve been checking DeFi projects last year, I’m sure you’ve noticed that many projects are using a point system to reward and celebrate active users. Of course, this point-reward system helps to attract new users and make them active. And increase the main key metrics for any DeFi projects, such as TVL, trading volume, liquidity, etc. These point systems are designed to reward users for various activities within these metrics, such as staking, liquidity provision, and referrals, among others. Projects like EigenLayer and Blast utilize point systems as a marketing and strategic tool, which in turn helps in bootstrapping network activity and fostering community growth. So, in this article, let’s take a look at how and why DeFi projects can use point systems to grow. And in the end, I will take a look at a couple of examples. I think this article would be useful for both DeFi projects and DeFi degens, as understanding the motivation behind a project's campaigns and activities will help to build the right DeFi strategy and understand the project's status. This also will help to analyze data the right way so that you can see it on different platforms like CoinGecko, different DEX, and API-integrated tools. If you run a DeFi or crypto project and need advice on marketing and community building, you can always message me directly! message me Why DeFi projects use point rewards systems: As we spoke earlier, DeFi projects use points as a marketing instrument to reward users in several strategic ways, enhancing user engagement, loyalty, and overall participation within their ecosystems. And here’s why: 1. Token Airdrop Preparation Most of the time, points mean share in the upcoming airdrop. At least, most of the users think so. Sometimes, airdrops are announced as preliminary, but most of the time, users don’t know how much they will finally get. That makes them intrigued and engaged. Some of the projects fuel it up with rumors that they spread among degen chats and influencers. Upcoming airdrop expectation works pretty well. 2. Incentivizing Specific Behaviors Points are awarded to users for engaging in desired activities such as trading, staking, or providing liquidity. This not only boosts platform activity but also helps maintain a healthy and liquid market. 3. Hype and Buzz One of the biggest parts of promotional strategies is to create buzz around the project. For example, by hosting competitions or challenges where points can be earned, projects can increase visibility and attract new users. And, of course, potential airdrops can be a topic to talk about for different KOLs, Twitter accounts, and media. Read more in my article on how Blast successfully did that . Blast successfully did that 4. Building Community Points foster a sense of community by encouraging users to interact with each other and participate in community goals. This can lead to a more engaged and loyal user base, which is crucial for the long-term success of any DeFi project. 5. Creating a Habit Point system makes users interact with the platform often. In some cases, even every day. It creates a habit and provides a better understanding of platform usage. That means that even after airdrop is done and/or the user needs some actions, he will use this platform even without rewards. 6. Long-term Participation Points can be structured to reward long-term participation, discouraging users from abandoning the platform after receiving initial incentives. This can help maintain a stable and growing user base. 7. Enhancing User Experience through Gamification By incorporating game-like elements such as points, leaderboards, and achievement badges, DeFi projects can make the user experience more enjoyable and engaging. This gamification can lead to increased user retention and more active participation. 8. Regulatory Navigation In some jurisdictions, the regulatory status of tokens can be uncertain. By using points, DeFi projects can engage users and grow their ecosystems without immediately issuing tokens, thus navigating regulatory challenges more effectively. 9. Performance Metrics And, of course, besides the big and active community, DeFi projects need high performance. More users create higher key metrics like TVL, pool liquidity levels, and so on that new potential audiences can see via analytical tools and graphics. High TVL brings more users and hype around the project. And these two factors go one after another. Examples Let’s take a look at projects that use a point system to reward their users as one of the marketing strategies. EigenLayer - This Ether restacking protocol awards points to users for restocking Ethereum or Liquid Staking Tokens (LSTs) within its ecosystem. These points may qualify users for potential airdrops and prioritize them in various protocol activities. EigenLayer Blast - a Layer 2 solution built on Ethereum, employs a point system that rewards users for staking ETH, using dApss, and participating in its referral program. The points accrued can significantly enhance user rewards, including eligibility for airdrops of BLAST tokens. Blast Blur - As an NFT marketplace, Blur introduced a points system to reward users who list and bid on items, as well as those who lend their assets. Blur Friend.Tech - A web3 social networking app that supplies points to users who interact with the platform. These points could potentially convert into tokens in the future. Friend.Tech My advice is to check different projects that use the point system as a tool and check how they do it. They all have something in common, but at the same time, many projects use pretty unique point system design. Points serve as a tool in DeFi and crypto marketing strategies, helping projects to incentivize desired behaviors, manage regulatory risks, promote user loyalty, and enhance the overall user experience. This multifaceted approach not only drives user engagement but also supports the growth and sustainability of DeFi projects and its key metrics. P.S. Check out my previous articles on AI at HackerNoon: Top Crypto Trends and Stories of 2024 (so far) NFT Market Trends In 2024 The Ultimate Breakdown of MemeCoin Promotion Why Everyone's Talking About Blast: The DeFi & Airdrop How To Launch and NFT Promotion for Projects in 2024 A Step-by-Step Guide for DeFi Marketing AI Crypto Coins: When the Power of AI Meets the Blockchain Top Crypto Trends and Stories of 2024 (so far) Top Crypto Trends and Stories of 2024 (so far) Top Crypto Trends and Stories of 2024 (so far) NFT Market Trends In 2024 NFT Market Trends In 2024 NFT Market Trends In 2024 The Ultimate Breakdown of MemeCoin Promotion The Ultimate Breakdown of The Ultimate Breakdown of MemeCoin Promotion MemeCoin Promotion Why Everyone's Talking About Blast: The DeFi & Airdrop Why Everyone's Talking About Blast: The DeFi & Airdrop Why Everyone's Talking About Blast: The DeFi & Airdrop How To Launch and NFT Promotion for Projects in 2024 How To Launch and How To Launch and NFT Promotion for Projects in 2024 NFT Promotion for Projects in 2024 A Step-by-Step Guide for DeFi Marketing A Step-by-Step Guide for DeFi Marketing A Step-by-Step Guide for DeFi Marketing AI Crypto Coins: When the Power of AI Meets the Blockchain AI Crypto Coins: When the Power of AI Meets the Blockchain AI Crypto Coins: When the Power of AI Meets the Blockchain

This story contains new, firsthand information uncovered by the writer.

Why Is The "Fantasy Top" NFT Game Is So Popular?

The Power of Community in Memecoin Success

Need advice on your Crypto/DeFi project? Message me in Telegram

Need advice on your Crypto/DeFi/NFT project? Message me in Telegram

Book a call

HackerNoon's DeFi Degen of 2021

Nominated for 2022 - Best Crypto Journalist

Nominated for 2022 - HackerNoon Contributor of the Year - Blockchain

Nominated for 2022 - HackerNoon Contributor of the Year - Defi

Nominated for 2022 - HackerNoon Contributor of the Year - Metaverse

Nominated for Hackernoons Nft Wizard of 2022

Nominated for 2022 - Web3 Wizard

Nominated for 2022 - HackerNoon Contributor of the Year - Decentralized Internet

Nominated for 2022 - HackerNoon Contributor of the Year - Nft

Too Long; Didn't Read

Download free Tech Leaders Productivity Report!

Is the DeFi Success Secret to Earn Points and Gain Rewards?

About Author

Comments

TOPICS

THIS ARTICLE WAS FEATURED IN

Related Stories

Untitled Story

10 DAOs You Need to Know About Right Now

$1M KCC Unicorn Contest: Presenting the Award-Winning Projects

$1M Hackathon Prizes Announced By MultiversX to Expand the Blockchain Ecosystem

0VIX Launches Pre-mine, Introducing Unique Risk Management Feature

The Noonification: The Future of DeFi - Emerging Evolution (11/3/2022)

10 DAOs You Need to Know About Right Now

$1M KCC Unicorn Contest: Presenting the Award-Winning Projects

$1M Hackathon Prizes Announced By MultiversX to Expand the Blockchain Ecosystem

0VIX Launches Pre-mine, Introducing Unique Risk Management Feature

The Noonification: The Future of DeFi - Emerging Evolution (11/3/2022)

Light-Mode

Classic

Newspaper

Dark-Mode

Neon Noir

Minty

HN StartUps