Last week we delved into Web3 loyalty. This week we’re taking a closer look at tokenization, interoperable loyalty and the opportunities for brands.

Web3’s standout feature? Interoperable loyalty. 

Web3’s open, shared data layer enables permissionless co-branded loyalty ecosystems. This means that brands can accept loyalty reward status and points from other brands through token-gating, lowering the costs of building loyalty ecosystems significantly and increasing network value. Download Magic’s interoperable loyalty deep dive for free.

Download for free

We’ve learned that Web3 loyalty is driven by two paradigm shifts, enabled by blockchain: 

  1. Digital ownership, scarcity, and transferability of assets: Consumers can control and transact digital assets without the need to trust a third party platform. This also enables genuine digital scarcity.

  2. Wallet centric interaction model: In Web3, the wallet becomes the user's main point of interaction.  

We also looked at four standout loyalty applications of Web3 tech: 

  1. Interoperability at scale, enabled by the open, transparent nature of Web3. 

  2. Personalization & “Loyalty Discrimination”, enabled by on-chain data.

  3. Transferability, liquidity & fraud prevention for digital loyalty assets.

  4. Building community & consumer collectives.