Recently, I found that many people do not fully understand the mechanism of Alpha points, so I will provide a detailed interpretation here.
First, let's discuss three misunderstandings about Binance Alpha points.
Misunderstanding one: Points will never catch up.
Binance Alpha points are calculated based on the total trading and holding points in the past fifteen days; points beyond fifteen days are not counted.
Therefore, points will not keep increasing, and there is no so-called deliberate deduction of points.
Starting to accumulate points at any time will allow you to catch up with the majority after fifteen days.
Misunderstanding two: Large holders lead retail investors, and retail investors cannot benefit.
In fact, Binance Alpha points are not friendly to large holders; in terms of holding points, holding assets worth 100 USDT yields one point per day, and holding more than 100,000 USDT only yields four points; beyond that, it is ineffective.
In terms of trading volume points, a trading volume of 2 USDT earns one point, and for each additional point, the trading volume must double. This nonlinear point growth model is actually not friendly to large holders.
Misunderstanding three: Points will become increasingly competitive.
The increasingly high point threshold in recent activities is because we are in the early stages of the points system.
The points system started on April 25, and everyone's total points in the first fifteen days are very low. Since the activation of the points system, valid counts will increase daily, so the point threshold will keep rising.
Starting from May 10, on the 16th day of the points system, the growth of points will begin to slow down.
At the same time, the marginal cost of accumulating points increases.
Since points do not have a linear relationship with holdings or trading volume, as trading volume increases, the increase in points slows down, and the returns from airdrops do not increase indefinitely. Therefore, when the wear from increasing volume gradually approaches the returns, the competition for points will gradually stop.
Points will not increase without limit.
In fact, Binance did not use a linear points model and set a time limit for point accumulation to prevent excessive competition among users, which shows their good intentions.
In the future, unless the frequency of airdrops increases and their value grows, the threshold for points will stabilize.
In short, act quickly.
Do not lament why you cannot benefit now and then decide in anger to stop accumulating points.
After reading my interpretation, you have already outpaced everyone who is still confused about the rules.
Start working hard now, and there will surely be a place for you in the rewards later.