Points Farming

Definition ∞ Points farming is a strategy where users perform specific actions within a decentralized application or protocol to earn non-transferable points. These points often serve as an indicator of user engagement and may qualify participants for future token distributions or exclusive benefits. The objective is to accrue as many points as possible, anticipating a potential future reward. This activity is prevalent in early-stage projects aiming to bootstrap user bases.
Context ∞ Cryptocurrency news frequently discusses points farming as a method for users to gain early access or potential rewards from emerging protocols. Participants often strategize to optimize their point accrual, sometimes involving significant capital deployment or complex interactions. The speculative nature of points farming and its eventual conversion into tangible value are common topics of analysis.