Chain of Points: blockchain solutions for the customer loyalty industry

Chain of Points seeks to disrupt the customer loyalty and gift card industries with a platform for creating and managing rewards programs. They are one of the first blockchain projects to implement Ricardian smart contracts.

Project Description

What is the project?

Chain of Points is launching a platform for the creation and management of conditional stores of value–such as customer loyalty rewards and gift cards. At the core of the Chain of Points platform is the crypto-token POINTs. Broadly, POINTs are used to transfer value from merchant to customer, customer to customer, and merchant to merchant over the network. Merchants can customize how the POINTs they issue are redeemed using Ricardian smart contracts. This allows Merchants to dictate and enforce the terms of their loyalty programs. POINTs are much more versatile and flexible than traditional loyalty rewards. Customers can sell unwanted points on secondary markets for their liquid value or share and combine them with other users.

Ricardian Smart Contracts

Chain of Points will be one of the first blockchains to feature automated Ricardian contracts–smart contracts that have legitimacy in civil courts. Terms of use for POINTS will be written in a new json based programing language. The language will be a non-turing complete DSL and has been designed with ease of use in mind. Merchants will be able to design the terms of their POINTs with a user friendly API. Specialized technical knowledge won’t be required like with other smart contract programming languages, such as Ethereum’s Solidity.  A protocol for interacting with oracles will allow users to easily incorporate off chain data into smart contracts.

A Ricardian contract is readable by a human and compilable by a machine such that both machine and human agree on how to execute the contract. On a high level, Ricardian contracts are traditional legal documents that have components, such as a cryptographic hash, that can be read by a machine. These legal documents are linked through this hash to an equivalent smart contract.

Photo credit: Wikipedia Commons

What is the token being sold?

What is its role on the platform?

POINTs are used to store and exchange value over the Chain of Points network. POINTs have two main states–locked and unlocked. Unlocked POINTs are open and unattached to any particular merchant or loyalty scheme. They can be bought or sold on crypto exchanges for market-determined prices. Merchants need to obtain unlocked POINTs in order to fuel their customer loyalty programs and issue gift cards or other promotions.

Locked POINTs have been converted, through the use of a smart contract, into a store of conditional value. For example, say a coffee house has a buy ten drinks get one free promotion. A Merchant can create POINTs to distribute to customers with the stipulation that they be redeemed in exchange for a beverage of their choosing. This is a locked POINT; it has a specific promotional value attached to it. A customer with a locked POINT can redeem it for the promotional value or sell it on the open market for its unlocked value. When the customer redeems their locked POINT, it becomes unlocked allowing the merchant to attach a new promotional value to it.

Locked POINTs can also be traded between customers or combined at the discretion of the issuer. Minimally, users will always have the flexibility to unlock their POINTs and sell them on the open market for their base value as a currency.

POINTs subdivision

POINTs can be subdivided into very small fractions, similar to Bitcoin. However, the Chain of Points platform will enforce a minimum transaction amount in addition to charging a small fee for transacting over the network. As a result, the network will not facilitate micro payments. At the time of writing the exact size of the transaction minimum and the fee rate hasn’t been determined.

How is the token distributed?

The total eventual supply of POINTS will be capped at 100 million. 21 million will be sold off during the crowdsale, 9 million will be reserved for the development team and the remaining 70 million will be minted using a proof of stake mechanism.

Delegated Proof of Stake

In a proof of stake minting scheme, users are rewarded for holding on to their POINTS. At the time of writing, the exact inflation schedule hasn’t been released. Broadly, the more POINTs a user has in their wallet, the more POINTs they earn as passive income.

Delegate nodes will be selected through a voting process and will also be required to meet certain performance benchmarks in order to qualify. At this time, the eligibility criteria for delegate nodes has yet to be decided.

What are the sale terms?

At the time of writing, detailed sale terms haven’t been released. This section will be updated when more information becomes available.

What is the project status?

The project currently has a team of ten, including three full time members with programing and engineering experience. Over the next several weeks, Chain of Points plans on releasing information about partnerships with players in the loyalty and gift card industry and a collaboration with several crypto wallet firms.

The team plans on publicly releasing their code several months after the ICO ends.

Who is the team behind the project?

CEO Irene Katzela

  • holds a PhD in Electrical Engineering
  • Has more than 20 years of experience working as a consultant for information technology firms.
  • 15 years of experience owning a consulting company, LPI Solutions.
  • In the last year she has started two of her own companies–Chain of Points and Axio4Tech, an IT consulting firm that focuses on network management and infrastructure.
  • Speaks Greek and English fluently

Chief Blockchain Architect Stefan Crnojevic

  • Won first prize at the International Conference of Young Scientists in 2013 and 2012
  • Earned his BA in Mathematics from the University of Belgrade in 2016

Chief Technologist Vladimir Vasilic

  • 10 years of product support engineering experience at major firms such as S&P Global and Tyco

Official Resources