Airdrop points programs explained: how they work and the catch
Many projects now give points instead of instant airdrops. How points programs work, how they may become tokens, the costs, risks and tax angle.
- Checked against the rules: Oct 2026
- Sources cited · No buy or sell calls
What points are
Instead of surprising early users with an airdrop, many projects now publish a points system. You earn points for things like depositing funds, trading, bridging or referring friends. Later, the project may announce a token and give holders an airdrop based on points.
Why projects use them
Points encourage people to use the app and keep funds there. They also let projects measure activity before deciding who gets tokens.
The catch
- No guaranteed value. Points may convert to a large airdrop, a small one, or nothing.
- Changing rules. Projects can change multipliers, add requirements or exclude wallets they think are "farming".
- Real costs. Network fees, locked funds and the risk of the app itself.
- Fake points sites. Scammers copy popular programs and ask you to "check eligibility" by connecting your wallet and signing.
How to take part more safely
- Use a separate wallet for points and airdrops. Farming wallet setup.
- Only deposit amounts you're happy to lock up or lose.
- Get links from the project's official site, never from DMs or replies.
- Track what you deposited and when.
Tax in India
Points themselves generally aren't taxed. If you receive tokens, they're commonly treated as income at their value on that day, and any later gain is taxed at 30% plus cess. Airdrop tax in India.
Sources
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