What are Point systems?
A Point system is a structured way of assigning value to specific actions or behaviors within a community or ecosystem. Points-based programs are among the most widespread and popular marketing strategies. Think of supermarket points, for example, where customers earn points for their purchases that can be redeemed for discounts or rewards.
These time-tested systems have been adopted by blockchain and web3 ecosystems, but with a key difference: they are designed not only to promote loyalty but also to offer differentiated forms of value.
While in traditional contexts, point systems are typically used to incentivize and reward participation, encouraging customers to make more frequent purchases, blockchain, and web3 point systems can improve the user experience and serve as a basis for distributing tokens, a strategy that has been employed by several projects in recent years, as we will see next.
How Point systems work and drive engagement in web3 ecosystems
Point systems are known to incentivize a sense of community within organizations, and they are one of the most effective marketing strategies in web3.
For users, points, once earned, translate into exclusive benefits and rewards that encourage engagement with the platform and promote frequent interactions. This dynamic creates a positive feedback loop, where users seek to amass as many points as they can to unlock the additional benefits and rewards.
On the other hand, the gamification effect plays a significant role in user engagement. By incorporating game-like elements such as challenges, quests, achievements, or the sense of accomplishment from being featured on a leaderboard, point systems boost user motivation to interact with the platform and create a stronger connection between projects and the community.
Real-world examples of successful point systems
To illustrate the effectiveness of point systems in action, let’s explore some successful examples from different web3 organizations that have effectively implemented point systems to create lasting value for their communities:
Brave
Brave Browser is a privacy-focused web browser designed to block ads and trackers. Users can select the types of Brave Ads they want to see and earn from, including images on the new tab page, push notifications, and other browsing interactions that earn them BATs. These tokens can be exchanged for a variety of currencies, both fiat and crypto or used to purchase gift cards.
Besides the monetary rewards for users, Brave allows them to support their favorite content creators by contributing BAT directly to sites they enjoy or setting up automatic contributions, creating a more sustainable and rewarding ecosystem where creators are fairly compensated for their content.
According to Brave, since the launch of Brave Rewards, over 1,000 advertisers have conducted more than 5,900 Brave Ads campaigns, allowing millions of users to earn BAT for their attention to those ads.
TAIKAI
TAIKAI is a web3 platform that connects builders and companies through hackathons, helping companies to innovate and talented individuals to grow. TAIKAI has its own gamification system, Points, to reward all the builders within the TAIKAI ecosystem for their participation and achievements within the ecosystem.
Anyone can earn Points as long as they are a registered user on TAIKAI. From there, all you need to do is complete Quests to start accumulating rewards. You can begin with the Primary Quests, such as completing your TAIKAI profile, updating your avatar, and following TAIKAI on social media. Easy, right? ;)
Then, you can earn even more Points by participating and winning hackathon challenges.
You can find all the available Quests listed here, and there are many more coming, especially now with the launch of the TAIKAI Garden. Soon, even more Quests will be unlocked, making the Points system more robust, better, and more rewarding.
Learn more about the TAIKAI Garden here.
At the end of each Points season, exciting rewards will be available such as official merch, exclusive rewards, and TKAI airdrops. So why not start earning your Points now and engaging with the community? Remember, the more you contribute, the greater the rewards!
Rainbow
Rainbow is a user-friendly cryptocurrency wallet designed primarily for managing digital assets in the web3 space. Their rewards program, Rainbow Points, incentivizes user engagement by allowing users to earn points through various activities within the wallet, such as swapping assets, utilizing the cross-chain bridge, and referring new users to the platform. These points provide users with the opportunity to receive weekly ETH airdrops, which can be claimed on any supported Superchain network through Rainbow.
The Rainbow rewards program is designed to make cryptocurrency management not just efficient but rewarding since users can take advantage of the cross-chain bridge and asset swaps to maximize their earnings.
After launch, Rainbow experienced a significant surge in users in the following 24 hours, with its points leaderboard on the iOS app listing over 400,000 accounts, likely due to the anticipation of future airdrops.
Eigenlayer
Eigenlayer is a protocol designed to improve the security and efficiency of decentralized applications by allowing Ethereum validators to “restake” their assets. When they restake their ETH, EigenLayer stakers receive Restaked Points as a measure of their contribution to the EigenLayer ecosystem. The more ETH and the longer they stake, the higher the rewards.
For ETH stakers, this mechanism allows them to allocate their staked ETH to EigenLayer and its operators, enabling them to improve capital efficiency and earn dual rewards: one from securing the main Ethereum network and another from the Actively Validated Services (AVS) they are supporting. Once earned, Eigenlayer Points can be traded in exchange platforms such as BIT.
How Point systems impact web3 communities
When designed well, these systems can be powerful tools to drive innovation, build engaged communities, and create new opportunities for decentralized governance and wealth creation both for users and organizations.
As users accumulate points through their contributions, whether by completing tasks, sharing valuable content, or engaging with platforms, they transform their participation into a rewarding experience that earns them benefits.
If you want to explore the full potential of a Points system, build skills, and earn rewards along the way, head over to TAIKAI, and start completing Quests!
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