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Loyalty Program Meaning

A marketing strategy designed to encourage customers to continue to do business with a brand. Traditional programs use "points" or "miles." In the digital asset world, these are evolving into Tokenized Loyalty and NFT-based rewards.

Using a token for loyalty allows for "Interoperability." Instead of your points being "stuck" in one airline’s app, you could trade them on an exchange or use them for a discount at a partner hotel. This makes the rewards much more valuable to the customer and creates a stronger "Network Effect" for the brand.

Some protocols use "Airdrops" as a retrospective loyalty program-rewarding users who have been active on the platform for a long time with free tokens.

This not only rewards past behavior but also turns the most loyal users into "Owners" and "Governors" of the project, deeply aligning their interests with the project's success.

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