The only question is the number of these points.
The quantitative and qualitative composition of the players registered for the tournament will directly affect the size of the coefficient.
For example, if the average rating of all participants is more than 1600, then the coefficient is 1.5; if it is more than 1700, then it is 2.0 (the tournament is awarded the status of a master tournament), and so on. And if, for example, it is less than 1600, then the coefficient = 1.1 and (the tournament is awarded the status of a fan tournament).
The numbers are taken from the air (need to be discussed).
P.S. IMHO, the advantages:
+ this provides more incentive to attract players to tournaments
+ the reward is extended to all participants, not just the winners.