It's not a bad idea business wise either. Many (even successfull games) have such a system in place to reward active free player.
For example, have a look at fortnite's battle royale part. It's completely f2p with optional microtransaction for cosmetics. Even as a completely free player, you get up to 500 credits per season just for playing the game (if you invest enough time into it). A season pass costs 1000 credits. But once you upgrade to the season pass, not are you able to progress faster for the rewards, you get additional 1000 credits as well.
So even if you buy a season pass every season, you get enough credits just from playing and still have a couple more left. And yet they are doing totally fine.