The End of Points: How Web3 Transforms Retail Loyalty
Understand why major retailers are replacing traditional point systems with Web3 token ecosystems to reduce financial liabilities.
Traditional coalition and mileage programs are saturated. The model of issuing expiring points no longer generates the loyalty it did a decade ago. The modern consumer demands ownership, portability, and real value—things centralized databases struggle to deliver efficiently.
By transforming points into blockchain tokens, the retailer creates an ecosystem where the customer’s benefit has liquidity. This opens doors for B2B partnerships natively integrated via smart contracts, allowing the token to be accepted across partner networks without complex and expensive API integrations.
For the Chief Financial Officer (CFO), the shift is even deeper. Traditional points are recorded as liabilities on the balance sheet. A utility token, if economically well-structured, can be designed to have a different accounting dynamic, easing pressure on corporate finances.
The transition requires intelligence. Our structuring focuses on mapping the customer journey and designing the correct mathematical incentives (Tokenomics). The goal is not to launch a marketing ‘cryptocurrency,’ but to build a real engagement engine that prepares retail for the tokenized economy sustainably.
Ricardo Zago
Ricardo Zago is the founder of Avalon Blockchain Consulting. He is a Professor of Web3 and Blockchain at FIAP and a startup mentor at ACE Ventures and Rock New Ventures. He brings over 25 years of technology experience with Whirlpool, Accenture, and BASF, and 8 years dedicated to blockchain.