"The Binance Alpha of the password is gone" @cz_binance @heyibinance Do 👊🏻 your actuaries make retail investors tick in by day? Binance Alpha earns points from daily trades, and the higher the points, the more airdrops. In just two months, it has attracted countless newcomers and studios to enter the game. But today, Binance has smashed the retail investor's dream of subsistence with a hammer The introduction of consumption points has changed points from "positive incentives" to "reverse pressures" "The more I brush→ the more I earn" became "I don't brush →, I'm deducted→ I can only continue to brush →, but I don't make any money 1. Calculation of points 1. Daily Points ⬩ Balance Points: $1,000 → 2 Points ⬩ Trading volume points: $4096 → 12 points for trading volume ⬩ 15 days accumulation: 14 points/day × 15 days = 210 points 2. Airdrops and point deductions ⬩ Current $RDAC Airdrop threshold: 205 credits, worth $36 ⬩ 15 points will be deducted after receiving the airdrop: 210 - 15 = 195 points. ⬩ Next day points: 14 new points, the oldest day 14 points expired, still 195 points. If the trading volume is not increased, the number of points will remain at 195 points for a long time 3. Threshold for the next airdrop ⬩ If the threshold is still 205 points and 195 points are insufficient, 10 points need to be added (0.67 points per day, 10 points for 15 days) ⬩ If the threshold rises to 220 points, 25 points need to be added (1.67 points per day, 25 points for 15 days) 2. Cost and benefit analysis 1. The cost of brushing points ⬩ Loss of $4096 trading volume: $4/day ⬩ Total loss over 15 days: $4 × 15 = $60 ⬩ Cost of making up points (taking 10 points as an example): ⬩ 12 points for every $4096, 1 point costs about $341.33 in trading volume (4096 ÷ 12) ⬩ 0.67 points per day, you need to trade $228.69 (341.33 × 0.67), and lose about $0.22 (proportional 4 ÷ 4096 × 228.69) ⬩ 10 points of additional loss in 15 days: USD 0.22 × 15 = USD 3.3 ⬩ Total cost: 60 + 3.3 = $63.3 2. Net Income ⬩ $RDAC airdrop value: $36 ⬩ Net income: $36 - $63.3 = -$27.3 (loss) 3. Long-term effects ⬩ The points remain at 195 points, if the threshold continues to rise (e.g. 220 points), you need to brush 1.67 more points per day, the trading volume will increase to $568.82 (341.33 × 1.67), the loss will increase to $0.56/day, and the additional loss will be $8.4 for 15 days, the total cost will be $68.4, and the net income will be 36 - 68.4 = -$32.4, and the loss will be even greater 3. The fatal problem of the point consumption mechanism ⬩ The vicious circle of double consumption: ⬩ 14 new points are added every day, and the 14 points on the oldest day expires, and the points can only be maintained (195 points). After deducting 15 points, it will not be able to recover naturally, and additional points will be swiped ⬩ High marginal cost of making up points: It takes $341.33 to make up 1 point, and the loss is about $0.33. The higher the threshold in the later stage, the more obvious the cost increase ⬩ Cost performance collapse: ⬩ The airdrop is worth $36, which is much lower than the cost of swiping points (from $63.3). Even if there are multiple airdrops, the point deduction mechanism makes the points continue to decline, and the transaction volume needs to be continuously increased, and the cost will rise indefinitely ⬩ The psychological expectation of retail investors was broken: the loss of $27.3 in 15 days was far lower than the expected return, and the motivation to participate was lost ⬩ Bonus Termination: ⬩ The point consumption mechanism is equivalent to "pricing" points: 15 points are worth $36 ($2.4 per point), but the cost of making up 15 points is about $115 (341.33 × 15 ÷ 4096 × 4), and the cost per point is about $7.67, and the value is inverted with the cost ⬩ The threshold (195 points) can only be airdropped if the threshold is maintained for a long time, and the value of the airdrop is diluted Binance's Alpha Points System was originally an experiment that combined user engagement and ecological incentives, with the goal of screening "valuable users" who are truly willing to participate in new projects through trading volume, balance, and other behaviors. From the point of view of the original design, it is not without meaning However, judging from the current operating results, problems such as complex mechanisms, mismatched returns, and rapidly rising marginal costs are destroying users' willingness to participate. Especially after the addition of the "point deduction mechanism", the points have changed from "accumulable assets" to "continuous consumption of resources", allowing users to fall into a negative cycle of continuous investment but diminishing returns The key to the success of an incentive system is not how many participants there are in the initial stage, but whether they are willing to stay for the long term Alpha Points may not be a failure, but at present, it has indeed reached a critical point that needs to be reflected and corrected