With Binance’s new rules in place, Alpha is shifting from a reward-farming tool to a mechanism emphasizing real engagement and value capture. This means earning points now depends less on trading volume or LP contributions and more on holding duration, interaction depth, and genuine demand. However, for many users reliant on low-cost farming strategies, this transition forces a reassessment of participation.

Following the flash crash of $ZKJ and $KOGE, Binance Alpha’s activity has plummeted. According to Dune Analytics, active users dropped from 233,000 on June 12 to 195,000 by June 15—a loss of 38,000 users in just three days. As of today, the number of active traders has further dwindled to 70,000, signaling a cliff-like decline in engagement. Meanwhile, the marginal cost of farming has surged, making Alpha’s reward system increasingly unattractive.

Recent Alpha-listed tokens have shown signs of immediate sell-offs post-launch.

A BlockBeats analysis of the new VELO reward program found that, under typical conditions (with a $1,000 investment), users now see minimal profits:

• Daily trading slippage: ~$4

• 30-day expected revenue: $224

• 30-day expected cost: $120

• Net profit: $104 (~$3.5/day)

This razor-thin margin has led many to abandon the platform.

Starting June 17, 00:00 (UTC), Binance Alpha no longer includes trades between Alpha-listed tokens in its Alpha Points system. This renders ZKJ/KOGE farming pools obsolete, forcing users into higher-cost, more complex liquidity strategies.

The $ZKJ crash has accelerated this shift, pushing Alpha into an incentive model overhaul. The immediate consequence? A mass exodus of once-active users—some reeling from LP losses, others frustrated by unprofitable farming.

BlockBeats interviewed multiple Alpha participants, including:

1. "Jiang Jiu" (LP Provider, -60% on ZKJ)

   • "Early rewards were great—low fees, high returns. But by mid-June, losses piled up. A friend misread my warning, bought ZKJ at the peak, and got wrecked."

   • "In crypto, unless exchanges step in, retail always eats the loss."

2. "Mosquito Coil" (Former High-Volume Farmer, -$2,000)

   • "I ignored the warning signs—thought ZKJ would bounce back. By the time I cut losses, it was too late."

   • "Alpha’s golden days are over. The effort no longer pays."

3. "Bro Jie" (Community Leader, Still Farming)

   • "I sensed the crash coming but was too busy managing accounts. Now, I’m adding on-chain monitors to avoid another disaster."

4. "Siner" (Optimistic Holdout)

   • "I’m sticking with Alpha—just found a lossless method. The game’s not dead yet."

For users like "Tian Ge," quitting means abandoning 200+ accumulated points—a sunk cost too painful to write off. "If a big project launches later, one airdrop could cover everything," he reasons.

But for most, the math no longer works. Jiang Jiu sums it up: "Rewards are down to $50–60, thresholds keep rising, and slippage kills profits. Why bother?"

Binance Alpha was meant to revive on-chain activity, but its current model overestimates trading incentives and underestimates systemic risks.

The shift toward real engagement metrics (holding, usage) may restore balance—but for now, low-cost farming is dead.

Advice for remaining players:

• Monitor pool liquidity and LP concentrations.

• Avoid overexposure to single tokens.

• Prepare for higher volatility as rules evolve.

In Web3, arbitrage windows come and go—but the cost of missteps stays high.

— Reported by BlockBeats