What are crypto points and how are they used in the web3 ecosystem? These points are essentially a value system employed by web3 projects to incentivize specific behaviors, gamify protocols, aid in governance or voting processes, and discourage airdrop farming activities. They can serve as a pathway to cryptocurrency payments or other rewards. Unlike cryptocurrencies recorded on a blockchain, crypto points are often centralized, managed by the project's developers.

The evolution of crypto points has been influenced by the airdrop trend, where projects would suddenly distribute tokens to previous platform users. While this led to benefits for recipients, it also spurred airdrop farming practices. Crypto points address this by offering a controlled incentive mechanism, allowing project founders to reward points holders with tokens or other benefits based on their activities.

These points play various roles, including incentivizing activity that benefits the project's ecosystem, incorporating gamification elements to enhance user engagement, and serving as a bridge to acquiring native tokens. They can be earned through specific actions such as hosting files for decentralized file storage projects, completing tasks, achieving milestones, or participating in community challenges.

More web3 projects are adopting crypto points to foster user engagement, build vibrant communities, drive adoption, and enhance governance by granting voting privileges to points holders. However, it's essential to distinguish crypto points from cryptocurrencies as they lack monetary value and are managed centrally by projects rather than being recorded on a blockchain. Examples of projects using crypto points include Rainbow, Friend.Tech, and Blur, each employing them to encourage various forms of user interaction and participation.