Crypto points farming is a trend where users receive points for interacting with certain blockchain protocols.

These points may be converted into tokens during an airdrop, but their value is often uncertain.

While carrying certain risks, crypto points farming continues to be a focus for some in the cryptocurrency community.

What Is Crypto Points Farming?

Crypto points farming is a new trend in the cryptocurrency world. It allows users to earn points by engaging with specific blockchain protocols. These points typically act as placeholders for a future airdrop of digital tokens. However, valuing these points can be difficult, and they might end up being just numbers with little to no future value.

How Does Crypto Points Farming Work?

Crypto points farming operates by incentivizing certain user behaviors. For instance, users might receive points for connecting their wallet, executing a swap, or using a specific app feature. The points are typically centralized—tracked by a project rather than recorded on-chain.

Why Do Projects Use Points Systems?

Projects use points systems to enhance user loyalty, amplify engagement, and fuel airdrop speculation. By scoring user actions aligned with project goals, they boost key metrics (e.g., a lending platform may increase TVL through points).

The Risks of Crypto Points Farming

While offering potential benefits, crypto points farming carries notable risks. Point values are unclear, and there’s no guarantee of token conversion. Often recorded off-chain, these points lack inherent value and can’t be traded like traditional cryptocurrencies.

The Future of Crypto Points Farming

Despite risks, crypto points farming is gaining attention (e.g., EigenLayer’s active participation). As more projects adopt points systems, this trend may evolve. Users must understand the risks and make informed choices.