The next new narrative in the NFT market: Open Loyalty
After PFP, everyone is calling for more practical utility.Original source: Twitter
Author: starzq.eth, organized by MarsBit
The next new narrative in the NFT market: Open Loyalty
After PFPs, everyone is calling for more practical utility. The membership token created by Starbucks based on Loyalty is an important example. What kind of world would it bring if more brands opened their memberships?
Brent, CMO of Smart Token Labs, calls it Open Loyalty and shares 3 cases and thoughts.
In industries that have suffered greatly from "offline" issues in web2, more value has been captured through Tokens and Open Loyalty. I have organized it into 3 cases and value points.
Karma Electric Vehicles: Accelerating digitization and establishing a low-friction ecological alliance.
Bogota Devcon: Building a pop-up Open Marketplace to capture incremental value.
Volkswagen: Creating a new way for brands to acquire customers - Claim to Earn.
Detailed expansion
1 Karma Electric Vehicles: Accelerating digitization and establishing a low-friction ecological alliance
The automotive industry is a typical "offline" industry with a rich third-party ecosystem, including registration, insurance, sharing, leasing, loans, clubs… but each piece of information is incomplete and isolated.
This leads to:
• Poor owner experience: Owners need to actively seek third-party services and repeatedly submit their information.
• Third-party services: Low efficiency and high costs.
The Car Token developed in collaboration between Smart Token Labs and Karma Electric Vehicles can better solve the above problems.
• The Karma Car Token is created based on the unique vehicle identification number (VIN), representing its ownership.
• This Token can be placed in any crypto wallet and also serves as a digital key to unlock and start the car, as well as to know the car's location.
• The Token can be transferred and sold on Ethereum.
Based on the Car Token, the entire ecosystem achieves Open Loyalty, allowing users to become members of all third-party services, making all services simpler.
• Registration: After discovering the Token transfer wallet, the vehicle management office can directly read the new Token-related information for registration, without requiring the original owner to deregister.
• Loans: Owners can complete borrowing through the Token; cars can now be pledged on BendDao.
• Insurance: Insurance companies can know the insurance status of the vehicle and provide discounts to owners as needed, rather than constantly bothering them.
• Owner clubs: Based on the Token, it is easier to verify the owner's identity, and token gating also ensures the privacy of the community and events.
• Sharing: Car sharing is a great NFT sharing use case.
A low-friction ecological alliance is established, benefiting both users and service providers.
2 Bogota Devcon: Building a pop-up Open Marketplace to capture incremental value
Another "offline" industry is conferences, which share similar pain points with the automotive industry:
• Attendees have very precise profiles and a series of third-party services surrounding them, both online and offline.
• However, attendees are difficult to identify, and due to the short duration of the conference, building digital identities and the ROI of the platform is not high enough, making it harder to capture their value.
Smart Token Labs provided token tickets for over 6000 attendees (who are also high-quality Ethereum developers) at Bogota Devcon.
Then something interesting happened: 25 service providers emerged, offering benefits to these Ethereum developers, including:
• Polygon providing VIP seats for the After Party to build connections for recruitment.
• VCs offering priority viewing rights for decks.
• Some project parties offering virtual hoodies in the Metaverse.
• Designers providing free personal homepage design.
• ……
Through Tokens and Open Loyalty, these previously scattered service providers, benefits, and Ethereum developers naturally aggregate into an Open Marketplace, capturing value that was previously hard to obtain and bringing incremental value to the entire ecosystem.
3 Volkswagen: Creating a new way for brands to acquire customers - Claim to Earn
In the past, brands mainly acquired users through advertising, which is costly and has limited precision. For example, how would Volkswagen find some influencers?
Based on tokens, a simpler method can be created.
Suppose you are a Reddit user who is very active in the automotive subreddit and has been rewarded with a related token.
Volkswagen can create an Open Marketplace, setting rewards for users holding the automotive subreddit token in exchange for their email.
Thus, influencers receive rewards through Claim, Volkswagen finds target users, and both parties capture value from each other. At the same time, the advertising costs on Web2 platforms are saved.
Claim to Earn will become a more efficient customer acquisition method in Web3.
This method can also solve the century-old problem in the sports industry: how to measure the ROI of sponsors?
In the past, sponsors spent huge amounts on advertising in stadiums but found it difficult to measure how many users and revenues were generated. Now, sponsors can use Claim to Earn to set rewards or discounts for users holding match ticket tokens, accurately acquiring users interested in them and calculating ROI. The century-old problem is thus solved.
Summary & Outlook
Constructing Open Loyalty through membership Tokens.
Accelerating the digitization of "offline" industries, establishing a low-friction ecological alliance that benefits users and service providers.
Building a pop-up Open Marketplace to capture incremental value, benefiting users and service providers once again.
Changing the brand acquisition method from advertising to allowing target users to Claim to Earn, returning the value taken by platforms in Web2 back to users.
After PFPs, what is the next new narrative in the NFT market? Everyone is calling for more practical NFTs, hoping that the external positivity created by membership Tokens and Open Loyalty can bring more users and value into Web3.
