1. Points and Psychology
Points are a structured way to measure and reward user engagement and loyalty within an ecosystem. They provide a framework for tracking activities and incentivizing behaviors that align with project growth goals, such as interacting with the platform or contributing to the community. In the context of an airdrop, points typically determine eligibility and allocation amounts, turning what would otherwise be a random reward into an interactive process that fosters competition and a sense of achievement. Beyond this, points systems are also used to guide users and introduce the final product.

The true goal of launching a points system is to enhance a project's user base, increase its liquidity, and ultimately boost all growth-related metrics. Some projects even use these metrics to raise funds at higher valuations, demonstrating the project's engagement and appeal.

Psychologically, points are a powerful driver of behavior, enhancing user engagement. Concepts like reward anticipation motivate users by promising future benefits, while the principle of reciprocity encourages loyalty to a system that rewards their efforts. The visibility of points also promotes social comparison, encouraging users to engage more deeply in competition.

2. Hyperliquid Points Program
Hyperliquid is a decentralized derivatives trading platform with its own Layer 1, aiming to combine the speed and efficiency of CEXs with the security and transparency of blockchain. Hyperliquid stood out in 2024 as the only well-known project without external funding.

In addition, Hyperliquid leveraged its points system to create the best token airdrop in the crypto space. This airdrop campaign is one of the most successful in history in terms of scale and execution.

To understand how Hyperliquid achieved this, we need to examine the various factors that propelled the platform to the top and made it a topic of conversation.

Hyperliquid Points Season Events
The points program is the cornerstone of Hyperliquid's success, designed to reward users and promote genuine interaction with the platform. Three main seasons were launched: the closed alpha, Season 1, and Season 2. Hyperliquid also implemented undisclosed Seasons 1.5 and 2.5, offering additional points for real usage rather than mere points farming.

During the closed alpha phase, which ended on October 31, 2023, Hyperliquid distributed 446 million points among 11,500 active users. This stage rewarded early adopters who participated in testing the platform, laying the foundation for Hyperliquid's community-driven spirit.

The points program and Season 1 officially launched on November 1, 2023, distributing 1 million points weekly over six months to reward users contributing to protocol growth. This initial phase ended on May 1, 2024. Users could also earn fees and points through referrals. To further incentivize participation and distribution, the temporary Season 1.5 (May 1 to May 28, 2024) adopted a 2x points reward, distributing a total of 8 million points over four weeks.

Season 2 began on May 29, 2024, distributing 700,000 points weekly until September 29, 2024. Following this four-month period was the undisclosed Season 2.5, from September 30 to November 2024, distributing 8.4 million points.

Earning Rewards: Knowns and Unknowns
Hyperliquid's reward system encourages users to engage in compliant activities, such as generating trading volume and depositing funds. However, manipulative behaviors like wash trading, withdrawals, and mining using associated wallets are penalized and flagged as Sybil activity.

While the distribution rates and season durations are transparent, key details remain uncertain or are disclosed only after some time, including the total points per season, the existence of tokens, how points convert to tokens, the exact criteria for earning points, and behaviors that may lead to penalties.

This mix of clarity and ambiguity focuses participants on meaningful contributions while speculating on the broader potential of the campaign system.

Perps Trading and Season 1
While the total points allocation for each season is known, the exact calculation for token distribution remains unclear. In Season 1, since perpetual markets were only considered in the final weeks, it is speculated that points allocation was based on typical metrics in the perpetual space, such as trading volume, number of trades, funding payments, liquidation volume, and user profit or loss amounts.

Compared to Season 2, points allocation in Season 1 was more linear, with users moving more capital through perpetuals earning significantly more points. There may have been caps on points allocation, or the cost of earning additional points increased progressively after reaching certain thresholds. However, there was a clear distinction between users with more capital and those trading with only a few thousand dollars.

Spot Trading, Retail, and Participation
The spot market was launched along with the PURR airdrop before the end of Season 1. Initially, there were no signs that spot market trading or general trading would come with incentives. However, after May, with the start of Season 2 points activities, a shift in the reward mechanism occurred.

During Season 1, the only way to earn points was by trading perpetuals, naturally favoring whales, high-frequency traders, and market makers, who could access larger capital and advanced trading strategies. Season 2 introduced a more inclusive system, allowing users to earn points not only by trading spot markets but also by holding assets. This change leveled the playing field, as the spot market lacked deep liquidity, putting retail traders and whales on equal footing and making it easier for participants with less capital to compete for points.

In most airdrop mechanisms, whales dominate through staking or high trading volumes. Hyperliquid was different, with its team implementing mechanisms to ensure a fairer distribution of rewards. This design significantly boosted the community's positive sentiment towards the platform. By the start of Season 2, points allocation had diversified among users in both perpetual and spot markets. Although the specific details of weekly points allocation were not disclosed, spot market-specific metrics (such as token holdings or liquidity contributions) likely influenced reward calculations.

The decision to keep these reward mechanisms opaque required users to experiment and discover optimal strategies on their own, preventing whales from cheating and monopolizing points distribution. This approach created a fairer reward structure, promoting inclusivity and participation among users with different capital levels.

3. Metrics
During the analyzed time period, open interest (OI) showed a consistent upward trend, closely correlated with trading volume patterns, with no signs of wash trading throughout the year. Most activities seemed to occur naturally, capturing market attention during active periods and gradually decreasing during the quieter summer months when the broader market trended sideways with a slight downward tilt.

A key moment was the PURR airdrop, which significantly boosted platform activity. After the end of Season 1 activities, engagement naturally declined, retaining only users genuinely interacting with the dApp. Subsequently, during the launch of Season 1.5, these users received additional points rewards, further incentivizing their participation.

The initial launch of Season 1 activities garnered less attention, but over the following months, even in a sluggish crypto market, activity gradually increased. By the end of Season 2, as the broader market was still recovering, Hyperliquid had become a hot topic. Despite no public rewards and a general perception that the platform's hype had faded, its metrics surged dramatically. Following the U.S. election and market rebound, Hyperliquid emerged as the platform of choice for on-chain traders, consistently outperforming its competitors.

The establishment of the Hyperliquid Foundation, coupled with the confirmation of the upcoming network token launch, solidified the platform's position in the market. This surge in exposure stimulated exponential growth in related metrics, attracting new users who remained engaged with the platform, drawn by its strong performance and innovative features.

4. What Did Other Projects Do?
To summarize and understand why Hyperliquid's points system succeeded while others did not, the table below compares the key features of major airdrops and points systems in this cycle:

5. The Secret to Success
The success of Hyperliquid's points system lies in its ability to balance user retention mechanisms with the quality of its underlying product. By analyzing its uniqueness and commonalities with other airdrop activities, we can derive key lessons on enhancing user loyalty, token retention, and project growth.

Uniqueness of Hyperliquid's Points System
Hyperliquid introduced innovative elements that set its activities apart. The limited points in this system created a fair and competitive environment, avoiding the user dissatisfaction often caused by unlimited points farming. In addition, users could receive additional airdrops, increasing the perceived value of participation. Most importantly, points farming required skill and effort, ensuring that the most engaged and capable users were rewarded while filtering out those seeking easy gains.

Common Features of Airdrops
Despite its uniqueness, Hyperliquid's campaign shared some common features with other airdrops. The total points were not disclosed in advance, maintaining market interest and speculation. Like many other campaigns, it lasted about 10 months and launched one or more points seasons before the token generation event. However, the lack of clear rules was a common drawback, leaving users to uncover the reward mechanisms on their own. Points farming also required a capital investment, a standard practice in similar activities but sometimes an exclusive one.

Lessons for Future Airdrops
If the goal is to distribute tokens to knowledgeable, loyal holders who understand the ecosystem, then earning an airdrop should require effort and