# Tensor Founder on Why New Crypto Products Shouldn't Use Points

**Published by:** [Alliance](https://paragraph.com/@alliancedao/)
**Published on:** 2024-02-23
**URL:** https://paragraph.com/@alliancedao/tensor

## Content

"If I were starting a new product right now, I wouldn't opt for points. Instead, I'd explore creative avenues like leaderboards, badges, morphing NFTs, or NFTs that level up on their own. I believe NFTs offer a form factor with endless flexibility". He recommends striving for uniqueness: "Do something different that will spark conversations on Crypto Twitter. That's how you win". The 2-person Tensor team recently surpassed Magic Eden – a team of 100 – in NFT trading volume on Solana. Ilja Moisejevs says the appeal of points might only last 6-12 months and predicts a decline in interest moving forward. Imran Khan, from Alliance, echoed: "People are starting to dislike points. You see startups that don't even have product market fit resorting to points". "If you are pre-product market fit, defined as having a dedicated user base that engages with your product daily and repeatedly, rewards, whether points or otherwise, shouldn't be your focus", Ilja advised. The consensus was that rewards are more effective post-PMF, provided there's a solid product to retain user interest, or else users may quickly disengage. However, points aren't without their merits: "What's driving the points meta is the regulatory arbitrage. In the U.S., for instance, token airdrops are restricted, making points a good interim solution to devise a regulatory strategy for token distribution.”, added Imran. Meow from Jupiter concluded: "Incentives in crypto never go away, they get more interesting". If you want to jump right to the quotes above go to 1:44 Video source: Founder Lessons with The Jupiter and Tensor Teams [Entire Talk]If this email was forwarded to you, remember to subscribe to our free weekly newsletter below.SubscribeThis week in cryptoAdam Back's complete email history with Satoshi Nakamato was entered in the court records todayEthena Labs launches with a staggering 24% APYThe first Blast L2 hackathon ended successfullyAlliance’s ALL13 cohort is open for early applications.Apply before Feb 28th at 11:59 PM PST to be considered as an early applicant.Apply to Alliance

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