Andy Jagoe on Warpcast

Lucas pfp

Thoughts on putting spendable loyalty points/miles on chain?

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Andy Jagoe pfp

owners of loyalty and points programs are notorious for devaluing whenever they like. might be hard for them to give that up.

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Lucas pfp

Good point. What do you think about a gift-card program like Starbucks’s? Presumably that reloadable balance remains pegged to fiat.

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Andy Jagoe pfp

interesting long term, gift cards on chain may collapse the cost of gift card programs and expand the market it's like having your own stablecoin pegged to the dollar, redeemable only for the products of one business

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Lucas pfp

Exactly what I was thinking. I see some benefits and some drawbacks, but I’m trying to think of unique value props that crypto might enable. Yeah, it’s basically a merchant-branded stablecoin.

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Lucas pfp

Basically the stablecoin is pegged by the business promise to deliver goods and services (debt)

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Andy Jagoe pfp

yes and like gift cards probably trades below its $1 'peg'

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Lucas pfp

That’s almost certainly what I’d imagine happening. But the trading of gift cards is something I imagine merchants wouldn’t want, since something like 40% of gift cards go unused. I’m trying to think of if there are offsetting benefits for merchants. Maybe social sharing?

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Andy Jagoe pfp

the best motivator for merchants is being forced to compete with someone else who's doing it or face losing customers/sales this means offering something so compelling (like 10x better) that users will switch for it. like free shipping

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Lucas pfp

That’s the tricky bit. What’s the 10x? Maybe it’s cost, like you mentioned, but hopefully there are other things too

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