Binance's points airdrop mechanism has been criticized for unfair distribution, and the main reasons are as follows:
The rules favor large investors and marginalize retail investors
The points rules are based on "balance points" (the total value of spot holdings and Alpha tokens) and "trading volume points" (the value of purchasing Alpha tokens). Large investors naturally accumulate higher points because they hold more assets and have larger trading volumes, and airdrop rewards are tilted towards them. Retail investors have limited investment, it is difficult to meet the points requirements, the actual rewards are meager or even ineligible to participate, resulting in a "rich get richer" situation.
The rules are not transparent and trust is damaged
Although Binance has disclosed that the calculation of points involves balance and trading volume, the specific weights, distribution ratios and airdrop details are unclear, which is equivalent to "black box operations". Users cannot estimate the rewards corresponding to the points. After the airdrop is issued, they often find that the returns are far lower than expected. They suspect that the points are manipulated or that large investors grab the lion's share, which raises questions about unfairness.
High threshold design excludes ordinary users
The points threshold is set too high. Ordinary users need to hold a large number of positions or trade frequently to meet the requirements, and the cost of participation is high. The airdrop income is concentrated in a few high-point accounts and fails to benefit a wide range of retail investors. The design of lowering the threshold and dispersing the income can improve fairness, but Binance did not adopt it.
The platform motivation tends to short-term profit
Binance may incentivize large-scale transactions and holdings through complex rules and high thresholds, pushing up the platform's trading volume and token demand in the short term, rather than truly pursuing user fairness. This "money-oriented" mechanism design ignores the interests of retail investors and damages long-term trust.
Summary: The unfairness of Binance points airdrops stems from the rules leaning towards large-scale users, lack of transparency, high threshold design and the platform's short-term profit orientation. Improvements need to be made to lower the threshold, simplify the rules, and increase transparency to truly benefit the majority of users.
Forward those who are dissatisfied with the airdrop 👿👿
