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Glossary · P
Points System
A pre-token incentive mechanism used by DeFi protocols before their governance token launches. Users earn points by using the protocol (depositing, trading, referring) — points later convert to token allocations in a retroactive airdrop. Points systems allow protocols to incentivise early usage without immediately launching a token. EigenLayer, EtherFi, Ethena, and dozens of others used points systems ahead of their token launches in 2024-2025.
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