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How Blockchain Loyalty Programs are Changing the Market

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by Giorgi Kostiuk

7 months ago


  1. History of Loyalty Programs
  2. Challenges and Issues
  3. Future of Blockchain Loyalty

  4. In recent years, the number of blockchain loyalty rewards programs has increased significantly as both the Web3 and decentralized application (DApp) sectors have begun maturing. However, young adults show a clear preference for participate-to-earn paradigms with focused ecosystems.

    History of Loyalty Programs

    Self-contained economies meant to incentivize consumers have been around since the advent of currency and competition. From earning airline miles with credit card purchases to earning gift cards with pay-to-browse incentivization programs, businesses have tried many methods to retain customers.

    Challenges and Issues

    Implementation of loyalty programs throughout blockchain and Web3 communities has been sporadic and inconsistent. Many projects focus on cryptocurrency rewards that can be cashed out upon reception, reducing incentivization to reinvest those funds, while others offer rewards that exist only on the platform they were earned on.

    Future of Blockchain Loyalty

    It's unclear whether current blockchain-based loyalty programs have led to measurable increases in user onboarding. Analysis shows that mini-DApps, Telegram games, click-to-earn games, and prediction markets are experiencing impressive growth compared to traditional loyalty programs. Simple experiences where incentivization is invisible or seamlessly integrated into user interfaces appear to be gaining the most traction among the largest demographic, those born after 1981.

    Blockchain loyalty programs continue to evolve and play an important role in attracting and retaining the younger generation of consumers. However, future technology must be tailored to user needs to increase effectiveness.

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