As consumers, we are accustomed to not owning our loyalty. The loyalty programs we are familiar with live in closed ecosystems, often with more restrictions than benefits. These programs can create a sense of captivity rather than loyalty, and introduce commitment barriers and switching costs that reduce value to brands and consumers alike.

An alternative system is possible, one of open loyalty, where loyalty “points” are tokenized and owned by the individual. From a brand’s perspective, bringing loyalty and rewards on-chain opens up an interoperable network of value that unlocks innovative partnerships and cross-brand collaboration opportunities.