What are Linear Points?
Linear points are a straightforward points accumulation mechanism where users earn rewards at a constant, proportional rate based on their deposit size and time held. Unlike complex tiered or decaying systems, linear points follow a simple formula: deposit more, earn more; hold longer, earn more. This transparency makes it easy for users to calculate expected accumulation and compare opportunities.
Linear point systems have become popular because they're easy to understand and predict. Users can precisely calculate their earnings and compare across protocols using simple math. The simplicity also reduces gaming opportunities, as there are no thresholds to optimize around or decay mechanisms to exploit.
How it Works
The core formula for linear points is typically: Points = Deposit Amount x Time x Rate. If a protocol offers 1 point per dollar per hour, depositing $10,000 for 24 hours earns 240,000 points. The rate remains constant regardless of deposit size, timing, or other factors.
Linear points accumulate continuously in most implementations. Your point balance grows every second based on your current deposit balance. Withdrawing stops accumulation; redepositing restarts it from the new balance.
The total supply of linear points grows predictably over time, allowing users to estimate their share of eventual distributions. If total value deposited is $100 million at consistent rates, and you have $10,000 deposited, you'll earn approximately 0.01% of all points assuming stable TVL.
However, TVL fluctuations complicate share calculations. If TVL doubles, new depositors earn points at the same rate, diluting earlier participants' share. This creates incentives for early entry when TVL is low and your relative share is larger.
Linear points are sometimes supplemented with multipliers or bonuses that create hybrid systems. A base linear rate plus referral bonuses or event multipliers adds complexity while maintaining the linear core.
Practical Example
Protocol XYZ launches with linear points: 100 points per ETH per day. You deposit 10 ETH on day one when TVL is 1,000 ETH. In the first 30 days, you earn 30,000 points (10 x 100 x 30). TVL grows to 10,000 ETH by day 30. Your share of total points on day 30 is lower than if TVL had stayed flat, but your early entry means you accumulated points when shares were relatively higher. By day 60, you have 60,000 points representing your consistent linear accumulation throughout.
Why it Matters
Linear points provide the fairest, most transparent accumulation mechanism. They reward capital deployment proportionally without complex gaming strategies. For users comparing point opportunities, linear systems offer clarity about expected returns. The predictability enables proper capital allocation decisions and portfolio management across multiple point programs. Fensory clearly identifies linear point systems and helps you calculate projected accumulation rates, compare across protocols, and optimize your point farming allocations.