Points Program

Definition ∞ A points program is a loyalty scheme where users accumulate non-monetary units, or “points,” by engaging in specific activities or transactions. These points can later be redeemed for various rewards, discounts, or other benefits. The program aims to incentivize user participation and retention within a particular platform or ecosystem. It functions as a reward mechanism to encourage continued interaction.
Context ∞ In the digital asset sector, points programs have gained significant attention as a strategy for new protocols and decentralized applications to attract and retain users. News often reports on projects distributing points to early adopters or active participants, sometimes as a precursor to a future token distribution. The current discussion centers on the utility and potential financial value of these points, with users closely watching for announcements regarding their conversion or redeemability into tangible digital assets.