Overview

Snag Solutions, the early leader in custom NFT marketplaces and loyalty, is expanding their ‘offchain’ loyalty product to let any brand, creator, or game reward authentic contributions via their loyalty APIs and spend points or ‘XP’ via their marketplace hybrid smart contracts. This headless solution enables gamified community engagement strategies, with a comprehensive solution that makes offchain points transactable onchain for digital assets.

Snag already supports ERC-20 tokens, but with the current regulatory environment and tokenomics ‘lock in’ associated with taking a currency onchain Snag has built an industry first solution for calculating, distributing, and bringing utility to soft currencies. Snag make launching a backend ‘currency’ easy by solving for security, scalability, and data availability while leaving the door open to bring points on-chain in the future. This solution is **available entirely via API,** and built with headless experiences in mind to let top brands & creators manage rewards tracking, distribution, or spending in their own digital experience.

Before going deeper on Snag’s approach to offchain ‘soft’ currencies, let’s review the pros and cons of currently available solutions:

Token-Type ERC-20 or Other Onchain Currency BackEnd Loyalty Points / ‘Token’
Definition Holders receive tokens via airdrop or onchain claim for contributions. Holder accrue points / ‘token’ and can check in-game or onsite.
Tokenomics Locked in on token launch OR causes regulatory risk if adjusted ongoing No tokenomics lock in, can adjust / re-base points as needed
Legal Risk High Low - similar to traditional loyalty programs

Snag built our offchain loyalty solution to work seamlessly across a wide range of use cases, to make an offchain currency maximally useful for a Web3 community Snag offers:

  1. Data availability: Snag has access to any onchain contribution like soft staking or paying royalty on purchase, and already integrated ‘offchain’ data sources including Twitter, Discord, and Instagram, with an ability to ingest any new data source like in-game XP via API.
    1. Snag has social APIs to share user profile data and social network linkages for brands that already have customer profiles as part of their digital build.
  2. Reward calculations: Snag uses project specific onchain + offchain data sources to calculate rewards for users daily via custom script logic, or can let projects manage calculations using our ‘Loyalty Rules’ + ‘Rule History’ endpoints to use their DB as a source of truth.
  3. Spend of points: Our marketplace ‘hybrid’ smart contract reads offchain point balances and spends points via API using asymmetric encryption and a locking mechanism to prevent double spending. Snag stores all debits/credits in our internal ledger available via API.

PROOF/Moonbirds ‘Talons’ Rewards marketplace

PROOF/Moonbirds ‘Talons’ Rewards marketplace

Examples of Current Snag Loyalty Program Logic

  1. PROOF & Moonbirds started simple, with 75 points/day for a Moonbird and Pass held, and 15 points/day for a Mythic, historical balances were ‘airdropped’ at a reduced daily accrual rate at program launch.
    1. Points are managed at the ‘PROOF Collector Profile’ level enabling pooling and spend of points across all wallets associated.
  2. Rolling Loud offers 10 points/day for soft staking, but only honors that point accrual if purchases following program launch include full royalty.
    1. They also offer up to 35 points/month for up to 5 uses of the @Rolling_Loud handle on Twitter or Instagram (7 points / use).

How it works

Top projects and brands are re-thinking loyalty and moving tokens offchain to start, eliminating gas cost and regulatory risk, while improving user experience. Snag is excited to build this capability into a scalable solution that maintains data availability, enabling you to launch an on-chain token in the future if you choose.