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This week we released our new Bitcoin Marketplace Journal Reward Token, kickstarting the future wave of expansion for the crypto industry.
Here’s how it operates: our Premium customers now get 10 BMJ tokens deposited to their crypto wallets each month, which they can redeem for actual-world benefits you can not get everywhere else. (Look at out the rewards in this article.)
On Monday I discussed our mission at BMJ: to onboard the upcoming 100 million crypto traders. The BMJ Reward Token is not an investment — it is a loyalty system — but it does get individuals released to crypto in the simplest attainable way, and encourages extensive-time period loyalty.
On Tuesday I discussed how BMJ is various from other tokens: it is only minted when true earnings is earned from our Premium membership. We have created a new metric – Actual Earnings Attained (RRE) – which gives the crypto sector a new stage of transparency and trust.
On Wednesday I explained the journey to launch the BMJ token, such as why we chose to build directly on Ethereum – not an additional blockchain or L2 solution – even having to pay the fuel expenses for members, so you can have the pleasure of getting new tokens in your wallet each individual thirty day period.
On Thursday I talked about the characteristics of fantastic loyalty plans, and how we can adapt these to the crypto field. We talked about the “Loyalty Flywheel,” and how re-investing in far more benefits sales opportunities to extra business — making a crypto group alongside the way.
Now I’ll communicate about why this is the get started of the subsequent fantastic crypto cycle, and why the BMJ Reward Token is uniquely positioned to guide the way. If you’re a Premium subscriber, maintain on: you are part of something really fantastic.
The Collapse of Rely on and the Increase of Loyalty
It’s no secret that several view the crypto field with suspicion.
2022 didn’t assist. Meltdowns. Implosions. Bankruptcies. And the ongoing demo of Sam Bankman-Fried, which will eat the news media for 2023 and outside of. (Prediction: there will be a Netflix documentary.)
How do we, as an marketplace, get back trust?
The to start with way is to tie tokens to genuine value. Aside from stablecoins, most tokens are backed by nothing at all but people’s perception. All through sector panics, we’ve witnessed that perception is the initial issue to go, before long adopted by token selling price.
Stablecoins had been a serious innovation, since they’re backed by genuine bucks — at minimum, the superior ones. Stablecoins have flourished as a outcome, and will probably be the initially crypto asset to be controlled and adequately integrated into the standard financial method. (An additional prediction.)
The BMJ token (and, we hope, other crypto loyalty courses to stick to) are only minted when actual earnings is been given. This is distinctive from stablecoins — we’re not holding the funds in reserve — but it mirrors loyalty systems currently, like regular flyer programs or Starbucks Rewards.
The 2nd way to regain rely on is to give tokens real utility. Make them do something. Traders are fixated on tokens that just sit in a wallet, hoping that “price go up.” The BMJ Reward Token is a little something unique: you can redeem it for actual-entire world benefits.
This gives reward tokens an tremendous gain more than other crypto tokens. If designed effectively, you really do not reside beneath a black cloud of worry that they could be an “unregistered protection.” Loyalty tokens are digital loyalty points, period. Just like Delta SkyMiles. Just like Starbucks Rewards.
The big difference is utility: they’re not just tokens that you purchase, hoping that the price tag will boost, dependent on the attempts of others. They’re tokens you are awarded as a paying consumer, which you can gather and redeem for worthwhile real-world rewards.
Peace out, Howey.
Genuine Benefits Cost Revenue
Let’s consider a standard credit history card reward system: you get paid one particular reward point for every single dollar put in. Then you can redeem these reward points for free of charge flights, hotel stays, or even — gasp! — funds again.
These rewards, of course, price serious cash.
Once again, with crypto loyalty systems, we’re setting up genuine firms that consider in true profits to make true merchandise and companies. This means all the lovely, substantial-high-quality merch on our benefits page prices authentic money … just like credit rating card benefits for the credit score card business.
So where does this money come from?
For credit score card organizations, it is concealed in the interest and fees. The foolish people who do not pay back off their credit score card costs in full every month pay out fascination, and their interest pays for your credit history card benefits.
For your regional coffee shop, they have ample revenue margin designed in that they can manage to give you a absolutely free coffee immediately after you’ve bought ten (you almost certainly acquired 10 pastries or muffins, much too).
For these who are building their very own crypto reward systems, you can clear up the “real rewards charge genuine money” problem in a couple of approaches:
- You can mark up the initial solution, or (extra likely) the reward product, so you nonetheless make a gain
- You can give digital downloads, which are essentially free to satisfy
- You can allocate some of the expense as a marketing price (superior loyalty plans will lessen client churn and boost shopper stickiness)
- You can figure out what share of reward tokens will go unredeemed, and selling price accordingly.
On the subject matter of unredeemed tokens, here’s a beneficial information stage. When we did our original token mint for the BMJ token, we observed there had been a range of people who hardly ever hooked up their MetaMask wallets. They paid authentic revenue for a Premium membership (RRE), but hardly ever claimed the tokens.
We have minted these tokens — some 17,680 — back into the master wallet, which we’re calling “BMJ Reserves.” The notion is that these can possibly be awarded to Quality users in the potential. It is a war chest that allows us commit again into the program, to make the loyalty flywheel go even a lot quicker.
Bear in mind: the stage of reward courses is to enhance consumer loyalty. Providers must see them like promoting or community-creating attempts: the lengthy-phrase advantages are enhanced buyer happiness, diminished churn, and much more gross sales. (Much more gains = more small business.)
The Wonderful Crypto Cycles
When you have been in this industry a even though, you see that it goes via cycles.
The best way to see these cycles is to glimpse at the value of bitcoin:
But what is going on powering the scenes appears to be some thing extra like this:
Which is for the reason that every downturn in the cycle washes out the weak point. It will get rid of the gamblers and the degens, and it opens the doors for refreshing making.
The downturns are not enjoyable, but they are beneficial because they force us to pay focus to what truly matters. To innovate. To hustle. To obtain new options.
Up marketplaces are for speculators, but down marketplaces are for builders. To simplify the crypto sector cycles, it would glance a little something like this:
Each and every down marketplace in crypto gave delivery to some new innovation that fueled the subsequent up industry, irrespective of whether that was smart agreement platforms, DeFi, or NFTs. The following wave of development, we feel, will be fueled by reward tokens.
I have laid down the principles we have used to build our BMJ Reward Token, with the hope it will offer a product for long run tasks to observe. Concepts like transparency and believe in. Actual revenue gained. Real-world benefits. And previously mentioned all, considering of blockchains like firms.
Thanks to all our Quality subscribers, especially these who have been with us considering the fact that Day 1. The long run is likely to be more rewarding than any of us can consider.
