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ST
@vercelabloh
Been thinking about "how to increase the number of USDC transactions at shops" and have decided that the best way is to give people USDC cash back for buying things with USDC; and [loyalty] tokens for buying things with fiat. And then showing merchants how many people have those tokens. Or something of the sort.
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Tom
@dstny
I’m of the same mind — excluding the loyalty / fiat bit — but remain unsure of where the cashback comes from As to me, the narrative of offering consumers 2-5% off their purchase via saved fees isn’t based in reality. Merchants are operating on thin enough margins as is and have been keeping any savings to themselves. I appreciate your thinking on it though, a lot of people avoid the hard problem and just say we’re early
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@vercelabloh
We're of the same mind but the core idea is not based in reality? OK. Where should the money come from? Great question. Who's invested in getting this off the ground? Circle? Coinbase? Consider this a marketing cost?
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Tom
@dstny
Oh I don’t have the answer for that, I spend my time thinking about solving it but certainly not close! My belief is that it has to be at the protocol level — e.g AmEx yields a reward on all transactions when paying with CC — and touch all transactions Problem there is that people with bad credit subsidize the rewards for those with good credit, not the membership fee, which would be the low hanging fruit So how to make that sustainable is the unlock; there’s DeFi mechanisms to help it get there with things like AAVE, but it needs more I think Coinbase / Circle are invested in the problem, but can’t solve in the manner described above, given their size. I think they’ll find a better direction than the current narrative too — still early days on this campaign.
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