A few days ago, Starbucks announced they will be sunsetting their web3 rewards program, Starbucks Odyssey. This came as a disappointment to many as there was a strong consensus they were executing the program well, and this would be the catalyst for widespread adoption of blockchain technology. Conceptually, the program was simple. Starbucks already has a loyalty program, but the quirk about Odyssey would be that the rewards would be NFTs (non-fungible tokens).
Unfortunately, it didn't work out the way we all expected. Starbucks abruptly ended the program, to the disappointment of many in their ecosystem. It is certainly understandable as there was a community formed around collecting, buying, selling, and trading these collectibles.
But I would argue that the sunsetting of Odyssey actually proves why we need loyalty programs powered by web3. One of the main selling points of web3 has always been decentralization. It's a bit of an abstract concept to understand, but essentially it goes like this:
Your favorite airline has a loyalty program. The more you fly and spend with them, the more rewards and higher status you get. But here's the rub: if the airline goes out of business, you'll lose all your rewards because the airline no longer exists. That has always been one of the pain points with loyalty programs issued by any entity.
Enter web3. You earn your rewards issued by the airline. But instead of them keeping and storing their data around it, it's stored on the blockchain, which is a decentralized and immutable ledger that lives forever. In plain English, the data is stored in a place where it's owned by nobody (essentially it's out in the open), it cannot be manipulated by anyone either, and yes, it lasts forever. This makes things really interesting. Suppose your favorite airline goes out of business; under this new system, not all is lost. Another airline (or many of them) can permissionlessly take over the rewards program. You may get an email from one of them saying they are sorry to see your airline of choice go out of business, but they'd love for a chance to earn your business, and they're willing to onboard you into their rewards program with the same miles and benefits you had before. Remember, since it is blockchain, the data lives forever, and the first airline didn't "own it", so this is easy for the new airline to do.
But wait, it gets even better: a few minutes later, you get another email from another airline. They give you the same condolence paragraph, but they also want a chance to have your business and are willing to double your miles from your old airline and give you status that is two levels higher than the defunct airline. In fact, the day is filled with a lot of airlines clamoring for your business.
And that's the beauty of web3. In web2, your data was owned by the company administering the program. In web3, you own your data, and you're giving the company permission to use it. You're in control.
As it applies to Starbucks, there is nothing stopping a competitor like Dunkin' Donuts or Tim Hortons from stepping in and taking over the program in some form or another. For this reason, the demise of Starbucks Odyssey is met with mixed emotions for many. Of course, it's always disappointing to see a program go under, especially one you have been a participant in, but in this case, it also shines a spotlight on how not all is lost, and at least there is a chance something new and better can spawn from it. In web2, this was not possible.
My startup, Media3 Labs, is building and shipping media-focused products and services with this thesis. Our flagship product, Scoop3, is an onchain podcast player which is essentially a podcast player infused with a loyalty program. When fans listen to content, they receive an NFT, thereby empowering the podcaster to set up their own loyalty program. Perhaps they want to recognize the most loyal listeners with a shoutout on the next podcast episode or send them free merchandise for their loyalty. Maybe one of the show sponsors wants to send the superfan a free product/service they are offering to try out or at a deep discount. If the podcast ever ends, you still have the rewards. The possibilities are both timeless and endless, and that's the beauty of onchain media.
Join us in bringing fans closer to their favorite content creators, and each other.
