Protocol Loyalty Scoring

Protocol Loyalty Scoring is a system used to quantify the commitment of users to a specific decentralized platform. It considers factors such as the duration of deposits, governance participation, and consistent usage of protocol features.

By assigning a score to each user, protocols can offer tiered benefits, such as reduced fees or priority access to new products. This creates a feedback loop that rewards long-term engagement and helps stabilize liquidity.

Loyalty scoring is an effective tool for building a sustainable community and reducing the impact of mercenary capital. It transforms passive liquidity providers into active stakeholders, aligning their interests with the protocol's success.