In today’s digital world, loyalty programs are key to building strong relationships between brands and customers. However, traditional loyalty programs have limitations, creating separate “islands” of rewards where points or credits can only be used with one brand.
This leaves customers with rewards they don’t use, and brands struggle to manage them.
Me Protocol is the solution to this problem. Using blockchain technology, they have created a new way for brands to share rewards in a seamless and flexible way. Customers can now redeem their rewards across different brands, adding real value and making loyalty programs more fun and worthwhile.
Me Protocol is a win-win for both brands and consumers, a flexible “open rewards” system that breaks down the barriers.
What is Me Protocol?
Me Protocol is a platform that connects different loyalty and rewards programs into one simple system. By allowing rewards to be shared and redeemed across multiple brands, customers get more value out of their points and incentives.
Me Protocol also helps brands attract new customers by making their rewards available to a wider audience, across the board.
The idea is simple: instead of rewards being limited to one brand, they can be shared across many, making them more useful and appealing to customers.
By using blockchain technology the Protocol manages all aspects of rewards, from how they’re created and valued to how they’re redeemed between brands.
In October 2024, Me Protocol was awarded the Tectris VC Web3 in Travel Accelerator at the CV Summit. The award acknowledges Me Protocol’s approach to developing a blockchain-based system for cross-brand rewards.
Why Traditional Loyalty Programs Need an Upgrade
Most loyalty programs are standalone, each with its own rules and limitations. If you earn points at a coffee shop for example you can’t use them at a different store or on another platform. This limits the value of rewards, customers have points they don’t always use.
Brands also struggle with these isolated programs. Managing rewards takes time and resources and brands struggle to keep their loyalty programs fresh. Without the ability to link rewards across multiple brands it’s harder for them to reach more customers and attract new ones.
Me Protocol solves this by having a single platform where rewards can flow across brands. Simple.
How Me Protocol Works
At the heart of Me Protocol is a system that allows different reward programs to work together. It uses smart contracts, digital agreements stored on the blockchain, to manage rewards securely and efficiently. These smart contracts allow rewards from one brand to be used with another so customers can redeem their rewards across multiple brands.
Each brand that joins Me Protocol creates a “reward pool” where their rewards are stored. These pools are like digital wallets that hold the brand’s rewards and the Protocol’s native token, called “Me” tokens. The Me tokens act as a bridge between different rewards so customers can move rewards between brands. When a customer wants to use rewards from Brand A with Brand B, the Protocol converts the rewards into Me tokens then uses those to make the transaction with Brand B.
How Rewards Are Valued
To keep things fair and maintain the value of rewards, Me Protocol has a unique way of valuing them. When a brand joins the Protocol for the first time it sets an initial value for its rewards (like a dollar value per reward point). This is called the “Optimal Reward Valuation”. This initial value sets the expectation of what the rewards are worth across different brands.
However, because brands and customer demand can change, the Protocol also has a way to adjust the value of rewards when they are exchanged between brands. This adjustment is called “Reward Exchange Valuation” and is calculated based on supply and demand so rewards retain fair value when used in cross-brand transactions. This prevents big fluctuations and keeps exchanges simple and transparent for customers.
Incentives and Costs for Me Protocol
Me Protocol is designed to encourage brands to participate by offering incentives and keeping costs low. Here’s how:
- Gas Fees and Protocol Fees: Like any blockchain-based system, transactions on Me Protocol require small fees. These cover the cost of processing on the blockchain and are paid by brands or third parties involved in managing the system.
- Customer Acquisition Incentives (CAI): When a customer redeems rewards from one brand with another the second brand pays a small “thank you” in Me tokens to the first brand for bringing them a new customer. This Customer Acquisition Incentive (CAI) encourages brands to work together in the Protocol.
- Bounty: When customers make cross-brand redemptions they sometimes pay a little extra which goes into a bounty pool. This pool is used for marketing and promotional activities to get brands more visibility and attract new customers.
Treasuries and Bounties
Me Protocol has built in tools to manage rewards and promotional funds:
- Treasuries: Each brand has a digital wallet, or treasury, where it stores redeemed rewards and any Customer Acquisition Incentives it receives. This makes it easy to manage your assets within the Protocol.
- Bounties: Bounty Contributions funds are used to promote participating brands. When the bounty pool reaches a certain level the funds can be spent on marketing efforts, special promotions or discounts to attract new customers.
These features make it easier for brands to join Me Protocol and attract customers and engagement without big ad spend.
How Customers Redeem Rewards
With Me Protocol, redeeming rewards is easier and more flexible. Customers can redeem rewards in two ways:
- Same Brand Redemption: If customers want to use rewards within the same brand that issued them they can do so quickly by redeeming them from that brand’s treasury. This is a one click process with no conversion required.
- Cross-Brand Redemption: If customers want to use rewards with a different brand Me Protocol handles the conversion. The rewards are converted into Me tokens and then used to complete the transaction with the chosen brand. This way customers can use rewards in a way that suits them and have a better customer experience.
Governance and Transparency
Me Protocol is designed to be flexible and transparent. To make sure changes can be made based on user needs the Protocol has a governance system. Through the Governor Module brands and users can make proposals and vote on changes so the system stays aligned with community interests.
And Me Protocol has introspection tools so participants can see transactions, liquidity and valuations. This transparency builds trust in the Protocol so users can be confident the system is fair and secure.
Me Protocol introduces a flexible and efficient way to manage rewards that benefits everyone. For customers it means rewards can be used more freely across multiple brands, making loyalty programs more attractive and useful. For brands it’s a way to be part of a shared ecosystem where customer engagement is encouraged and acquisition costs are reduced.
Me Protocol breaks down the walls of traditional loyalty programs. A blockchain solution with simple interfaces to help brands get new customers and customers to use rewards in a meaningful way.
Source: Meet Me Protocol: The Rewards Layer For The Digital Economy
