During the development of decentralized finance, the yield distribution mechanism has undergone a notable evolution. Traditional liquidity mining typically uses a "deterministic yield" model, where block rewards and token release rules are directly hard-coded in smart contracts; participants can accurately calculate the expected linear return at the moment they stake. However, emerging protocols represented by @BabylonLabs_io introduced, in their early stages, an "points-based" architecture. This mechanism is, in essence, a form of delayed-pricing voucher: participants first receive points, and only when the Token Generation Event (TGE) occurs is the specific exchange ratio to the native token $BABY 公布ed.
The primary advantage of adopting a points-based system is that it grants the protocol team substantial flexibility in token economics. In the highly volatile early market phase, projects can avoid excessive token dilution or incentive misalignment caused by fixed rewards, thereby retaining dynamic control over how tokens are allocated.$BTC
But for stakers, this design fully transfers the power to price yield to the protocol team. In an environment lacking secondary-market liquidity, points are merely an options contract without a filled-in amount. Although participants lock the underlying Bitcoin assets, they cannot accurately evaluate the net present value (NPV) of that interaction during the lock-up period.
Therefore, when #baby evaluates the participation logic for such infrastructure, it must clearly distinguish between "accounting instruments" and "substantive returns." Putting funds into a points pool with an exchange rate that has not yet been determined is, in essence, a blind-box game based on the protocol’s future expectations. Rational participation decisions should be grounded in in-depth research into the protocol’s long-term value, rather than relying solely on linear expectations of traditional fixed annualized returns.
The primary advantage of adopting a points-based system is that it grants the protocol team substantial flexibility in token economics. In the highly volatile early market phase, projects can avoid excessive token dilution or incentive misalignment caused by fixed rewards, thereby retaining dynamic control over how tokens are allocated.$BTC
But for stakers, this design fully transfers the power to price yield to the protocol team. In an environment lacking secondary-market liquidity, points are merely an options contract without a filled-in amount. Although participants lock the underlying Bitcoin assets, they cannot accurately evaluate the net present value (NPV) of that interaction during the lock-up period.
Therefore, when #baby evaluates the participation logic for such infrastructure, it must clearly distinguish between "accounting instruments" and "substantive returns." Putting funds into a points pool with an exchange rate that has not yet been determined is, in essence, a blind-box game based on the protocol’s future expectations. Rational participation decisions should be grounded in in-depth research into the protocol’s long-term value, rather than relying solely on linear expectations of traditional fixed annualized returns.