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I don't think it's referral-based, in the manner of violating the rules. It mentions value-preservation. I think what happens is that you trade out a game. When the other person gets it, you are awarded points. You use those points to "buy" other games from other people. The only monetary value is the $1 per trade on the one side. The "value" of the points is that if you trade out a game worth 2000 points, then you get a game worth 800 points, you still have 1200 points for another game.
I don't think it sounds fishy, but it takes too much control away from the participants if I understand it correctly.
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