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Points Program

What is a points program in DeFi?

A pre-token incentive mechanism where a protocol awards off-chain, protocol-specific points for user activity, typically with an implied (but not contractually guaranteed) future conversion to airdrop eligibility or token rewards. Points became prevalent in 2023-2024 as protocols sought to grow user bases before token launches. From an analytical standpoint, points represent illiquid, non-transferable, and revocable yield: conversion rates, eligibility criteria, and timing are at the protocol's discretion with no enforceable claim.