In the Web3 economy, loyalty isn’t earned through repetition — it’s established through verifiable participation.

The Old Playbook Is Collapsing

Traditional loyalty programs run on a simple formula:

Buy → Earn → Repeat

This logic assumes linear behavior. But today’s consumer isn’t linear — they’re fluid, networked, and context-aware.

As a result, standard loyalty programs — no matter how digitized — feel disconnected.
They rely on closed databases, fragile integrations, and an outdated idea of value (i.e., discounts or status tiers).

According to McKinsey, over 71% of customers expect recognition beyond transactions — but only 22% of brands deliver it.

The Rise of the Onchain Consumer

The onchain consumer is:

• Wallet-native
• Reward-fluid
• Identity-portable
• Comfortable with provable ownership

They don’t need a brand app or a unique login.
They bring their own credentials — in the form of wallets, activity graphs, and digital assets. Their identity and engagement history are composable, queryable, and public.

They’re not waiting to be enrolled in your loyalty program.
They’re waiting to connect.

Proof, Not Points

In the onchain world, loyalty isn’t about earning points. It’s about broadcasting proof.

Proof of Play
You didn’t just browse. You interacted. You co-created. You referred. And it’s verifiable on-chain.

Proof of Hold
You didn’t just buy. You staked. You committed. You chose to hold an asset instead of flipping it.

Proof of Stake (Social, not Financial)
You didn’t just transact. You aligned your social graph with the brand — through identity, community, or content.

These proofs don’t just unlock rewards.
They form the basis of status, access, and governance in the new consumer stack.

Case Studies: Onchain Loyalty in Action

• Reddit’s Avatar Program: Over 30 million wallets created. Avatars served as portable reputation signals, unlocking perks across subreddits and third-party games.
• Starbucks Odyssey: Not just a loyalty program, but a reward-driven game layered on Web3 rails. Users earn journey stamps (NFTs) and unlock experiential perks.
• RTFKT (Nike): Users holding specific digital sneakers were airdropped exclusive items, events access, and real-world merch — all tied to proof of hold.
• Lens Protocol: Treats user actions (posts, follows, shares) as programmable onchain data. Loyalty becomes behavior, not badges.

Why This Matters for Loyalty Architects

Let’s break down the difference:

Traditional Loyalty-Closed database

Onchain Loyalty-Public ledger (verifiable)

Traditional Loyalty-Brand-owned identity

Onchain Loyalty-Wallet-owned identity

Traditional Loyalty-Transactional rewards

Onchain Loyalty-Behavioral and contextual

Traditional Loyalty-Static tiers

Onchain Loyalty-Dynamic status (NFTs, tokens)

Traditional Loyalty-App-bound experiences

Onchain Loyalty-Interoperable, cross-brand

Brands that fail to adapt will keep building loyalty systems that no longer match the incentives or expectations of digital-native users.

The Interoperability Advantage

The real unlock of onchain loyalty?
Interoperability.

In a Web3 world, users can carry their status across ecosystems.
Hold a Nike artifact? That could unlock early access on Farfetch.
Completed Starbucks Odyssey? Maybe Adidas wants to reward that.

When loyalty becomes portable, so does attention.

This radically increases the incentive for users to engage — and for brands to collaborate instead of compete.

Final Word

The future of loyalty won’t be measured in point balances or redemption rates.

It will be measured in proofs — of participation, of alignment, of trust.

If your program can’t verify it, reward it, and let others build on top of it — it will be forgotten.

Sources

1. McKinsey & Co. — The loyalty economy is transforming: Are brands ready? (2023)
2. a16z — The Emergence of Onchain Consumers (2024)
3. Starbucks Odyssey official release notes — stories.starbucks.com
4. Dune Analytics — Reddit Avatar Wallets and Drop Analysis (2023)
5. RTFKT & Nike — rtfkt.com
6. Lens Protocol whitepaper — docs.lens.xyz