Web3 Launch
This is the phase when MuCo starts to fulfill its mission to truly transform loyalty and rewards. Until now, MuCo has been a traditional loyalty platform with points – albeit solving a different problem by focusing on consumer time rather than money. Web3’s decentralisation and ownership tenets will help bring trust, scale, and longevity to MuCo.
There are two key transitions in this phase: Mu points to Mu tokens, and MuMarket to MuExchange. Tokens would be stored on the blockchain and enable others to build applications leveraging the tokens, akin to what Reddit is promising with the launch of its Community Points. Thus, the applicability of Mu tokens widens. In the world of loyalty, points are closely guarded by the issuing entity (airline, bank, hotel, for example). In the universe of tokens, stemming from the core belief that tokens belong to the consumers, the ability to use and redeem tokens can be widened. A MuExchange can be one such entity – enabling trading and conversion to fiat and other currencies. But the real value unlock will happen when entrepreneurs discover new applications for Mu.
Some additional utilities will also be needed for MuCo to help with the transition. A MuApp will make managing tokens and messages much easier. As I wrote; “[MuApp] has an inbox connected to the two public identities (email address and mobile number), support for AMP and Atomic Rewards (Mu), a wallet to hold Mu tokens, and a link to one or more exchanges for trading … [It] enables the easy flow of Mu between brands and customers, thus enabling the monetisation of attention and data. It integrates Email 2.0 and Loyalty 2.0. It is the hotline that creates a win-win by enabling brands to cut their Adwaste by building better relationships with their existing customers, who can in turn become promoters to assist with better new customer acquisition, providing a Big Tech bypass and an entry point to the µniverse.”
In this phase, brands will be able to purchase tokens directly via the MuExchange. This will bring in many more brands and widen the scale and scope of the Muniverse. It is like going from an invite-only world (for brands and consumers) to completely open access.
A big innovation in this phase will be the introduction of XRTs (eXtreme Retention Tokens). XRTs are a great way for brands to reward their Best Customers. They are a form of status symbol, providing an “Open Sesame”-type access to a set of exclusive experiences. XRTs would be stored in the MuApp.
It is possible that Mu points and tokens would co-exist. Some short-sighted nations (India included) have put severe constraints on the use of crypto tokens, confusing every token to be a crypto-currency. In such countries, Mu points will need to continue. Wherever possible, the morphing of points to tokens would be encouraged, conferring on the owners the benefits of future asset appreciation. (Points cannot be traded, while tokens can be.)
The key success metrics in this phase would be the conversion of Mu points to tokens, and the velocity of tokens. The more the usage, the greater its utility, and therefore higher the prospect of future appreciation.
