# The New Meta: Onchain Points

> Everyone, Take Notes… ✍️

**Published by:** [Web3 Academy](https://paragraph.com/@web3academy/)
**Published on:** 2023-12-18
**Categories:** cryptocurrency, web3
**URL:** https://paragraph.com/@web3academy/is-onchain-points-the-new-meta

## Content

GM DOers! 😎 GET POINTS FOR REPLYING TO THIS EMAIL. Kidding, there’s no points for you here. However, if you look around, you’ll notice that points are all the rage right now. Web3 Academy 🟣 @web3academy_ Every onchain app right now: 10 18:31 • 17 Dec 2023 Rainbow is giving out points for everyone that starts using their wallet – you get instant points by importing your existing web3 wallet into Rainbow. Rainbow @rainbowdotme Welcome to Rainbow Points — the first step towards including our community in the future success of Rainbow Every Ethereum user has been dropped points today Claim your points and start earning more by doing the things you already do onchain 3,921 3:55 • 13 Dec 2023 MarginFi, a DeFi protocol on Solana, has built a cool points leaderboard in which users can see their progress. Users earn points by borrowing & lending assets on MarginFi.Kamino, another Solana DeFi app, says that points are coming soon. 👀And even Lens is teasing points… Lens Protocol @LensProtocol Points? 1,448 23:25 • 13 Dec 2023 Everyone hopes that these points will result in airdrops worth $10,000s, just like Jito distributed recently. Web3 Academy 🟣 @web3academy_ 10,000 users received a minimum of $13,800 in Jito airdrops recently Some even got almost $300k The minimum airdrop consisted of 4941 $JTO, and, at today's prices of $2.8, this is valued at $13,800. Airdrops can truly change lives - what's the next big one? 6 19:45 • 17 Dec 2023 So are onchain points the new meta? Coop 🔥_🔥 @Cooopahtroopa Onchain points are the next meta. 80 8:31 • 11 Dec 2023 Maybe… This is a new web3 marketing strategy that can help any app accumulate new users and liquidity while providing a gamified experience to its users. Therefore, I think you should be aware of this concept, regardless if you’re a developer, marketer or regular user in web3. For Developers: Onchain points boost user activity, helping to test the capabilities of your product. For Marketers: These points are a magnet for attracting new users and liquidity. For Users: You get more enjoyable onchain interactions and rewards (often airdrops). Today, I’ll share a few practical examples of onchain apps implementing onchain points that we can learn from. Note: These points aren’t onchain. However, users earn them from onchain activities, which is why I’ll call them onchain points throughout this article. Let’s dive in. ⏬🤝 Together with ParagraphParagraph powers modern newsletters, enabling readers to own their content and creators to share revenue with fans. Web3 Academy has already transitioned to Paragraph because it’s the future of newsletters. If you're a creator, writer, or keen reader, explore Paragraph's early opportunities!Check Out Paragraph TodayHow Onchain Points Provide a Better ExperienceOnchain points represent a digital rewards system that offers points to users for engaging in specific onchain activities like swapping, bridging, providing liquidity or borrowing assets. Most of the time, these points have 0 value – it’s just a way for platforms to measure user engagement & for users to keep track of their activities. However, points frequently play a role in qualifying users for upcoming incentives, such as token airdrops. That’s the ultimate aim for every user accumulating onchain points – to eventually convert them into a substantial airdrop. Therefore, apps adopting onchain points have drawn numerous new users eager to farm a potential airdrop.Rainbow Wallet PointsRainbow’s points system is a great example of an app that hasn’t promised an airdrop. They’re just giving worthless points to their users. Yet, many are starting to use Rainbow hoping for an airdrop, which I personally think is coming. Rainbow offers points to users based on:The swaps they make on RainbowThe Rainbow NFTs they ownTheir wallet balanceAnd, here’s the most interesting part: Rainbow offers points to users that have previously swapped assets on MetaMask. In the next section, I’ll tell you why that’s interesting & important so keep reading. ⏬MarginFi PointsMarginFi, a DeFi application on Solana introduced points a few months ago, and they’ve publicly announced that these points would at some point turn into airdrops for users. So this is an example of an app promising an airdrop based on how many points users gain. You can accrue points by lending and borrowing assets on their platform, as we highlighted a few weeks ago here. By accruing points, you get to climb up a global leaderboard (screenshot in the intro above) where you get the feeling of competing against others. And this is cool! Why? A few reasons. 👇Why Onchain Points Matter Transparency Historically, airdrops have happened mysteriously. Most users didn’t even have a clue that they received an airdrop when they did. Here are 2 examples.ENS – distributed $1,000s to everyone that minted a .ens handle, something users didn’t expect. As a result, ~$46 million worth of $ENS was never claimed. ens.eth @ensdomains The ENS DAO governance token airdrop has now officially *ended*. The remaining 5.4M unclaimed tokens have been transferred to the DAO! 1,071 9:41 • 5 May 2022 Arbitrum – distributed $ARB tokens to early users. Again, some users didn’t expect this, so $55 million were never claimed. Web3 Academy 🟣 @web3academy_ Crazy that ~$55 million in $ARB airdrops were not claimed. Arbitrum (💙,🧡) @arbitrum The 69,448,385 unclaimed ARB remaining in the token claim contract has officially been moved to the #ArbitrumDAO treasury as outlined in AIP-7 Tx link: arbiscan.io/tx/0xa2477f2f1… AIP-7: tally.xyz/gov/arbitrum/p… You cannot claim those tokens anywhere. Please be safe out there! 1 16:01 • 25 Sept 2023 Points change that. By accruing points, users have the ability to transparently see their progress on a daily basis. Furthermore, users are aware of which onchain activities result in points. This is much better than hinting at an airdrop without any details about what people should do and not do. Besides, when users see that they’re climbing up a leaderboard, they feel like they're competing against other people, which further amplifies people’s drive to do even more onchain activities. Targeting the Right AudienceI’ve told you how Rainbow gives points to those who’ve used MetaMask swaps in the past. Why do they do that? Because that’s their target audience. Rainbow – like any other wallet – makes money off of in-app swap fees. Users who swap tokens right in their wallet, are the users that Rainbow needs to target & reward via onchain points. This is a game-changer for marketers.Referrals Another huge boost that onchain points bring to the table are rewards for referrals. Users gain points for referring new users, and thanks to the onchain nature of DeFi, they can also earn additional points based on the activities of their referrals. For example, on MarginFi, those who refer users can endlessly earn from all future referrals that are generated by the users they referred. Sounds a lot like a pyramid scheme? That’s because it is! This sort of referral program is common in most typical businesses too. It’s how apps gain new users.Wrapping Up 🧵 What’s Next?The narrative around onchain points is intensifying right now. Someone even dropped a token called $POINTS, which generated 100x for some who got in early. 😂 Web3 Academy 🟣 @web3academy_ WTF is $POINTS? Meet the first memecoin that emerged from @farcaster_xyz h/t @nicnode for sharing the lowdown 23 18:49 • 15 Dec 2023 I think that most onchain apps will introduce points. Many of these will turn into airdrops, while some will remain just a dream. Remember that points don’t always equal airdrops. Zapper, for example, introduced points a long time ago as rewards earned by users for activities like token swapping and liquidity provision. These points have never become an airdrop. 😢 So if you’re going to use apps that give out points, do it because it’s a good app, not because you’re farming an airdrop. Personally, I started using the Rainbow Wallet ever since they announced points and I realized that it’s a much better wallet than everything I’ve used in the past. Even if they don’t give me an airdrop, I won’t be mad because I’ve discovered an app that I really enjoy using. With all of that said, I firmly believe that onchain points are a great marketing tool that all apps should take advantage of to attract & retain customers. Besides, if they’re ever ready to decentralize the application, they can seamlessly airdrop the governance token to the most engaged users. I love points! If you do too, reply to this email with a GM.Thanks for reading. And remember, you're strong, you’re powerful, you’re alpha! ❤How'd you feel about our read today?⭐⭐⭐⭐⭐ Loved it!⭐⭐⭐ Decent!⭐ Kyle, step it up!Are You Fairly New to Crypto & Web3?Let us help you wrap your head around this industry that’s constantly transforming. Take our Free 1-hour Web3 Rabbit Hole Course to learn the foundational components you need to start building and investing successfully.Take Free Rabbit Hole Course NowJoin us on Discord | Follow us on TwitterAdvertise with Web3 Academy Disclaimer: This article is for informational purposes only and not financial advice. Conduct your own research and consult a financial advisor before making investment decisions or taking any action based on the content.

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