Points are used to buy the various weapons and items in the Toy Shop. Note that weapons are one-time-use and must be bought again later.
To earn points, simply play on the server.
You will earn a certain number of points per minute while playing.
To earn points faster, you can play golf or mine. Or you can try to get people to send you some.
You can also leave your client AFK on the server, but you will earn at a lower points-per-minute.
To earn points faster, save up! Points you have saved up generate interest and lead to exponential growth, until you hit the earnings cap of 200 points per minute.
Donating is also the only way to increase your Income Level. A higher Income Level will permanently increase your earnings cap and give you an income multiplier for even more points!