Bread Rewards: The Waterfall
The Bread team would like to wish everybody a happy 2018!
2017 was a fantastic year for bitcoin and cryptocurrency in general. As you are probably aware, Bread completed a successful token sale in December, launching the BRD token. This token will act as the base unit of our loyalty and rewards program, and bring us one step closer to creating the world’s largest decentralized bank.
Bread’s core wallet functionality will always be free, meaning you can send, receive, and store your digital assets without needing to provide your personal information or create an account. But as we grow, we will be adding extra functionality for users who want something more from their wallet. BRD tokens can be used to receive discounts when accessing some of these additional services, however simply holding a certain amount of BRD in your Bread will have its own benefits as well.
Users will be able to earn BRD tokens through various promotions and giveaways, similar to how your credit card might give you airline miles for every purchase or for opening a new account. Also similar to credit card rewards programs, Bread will be offering special tiers of additional perks that will be unlocked for users as they hold more and more BRD in their Bread. The more you hold, the better the perks.
One major difference from other loyalty programs, however, is that the global supply of BRD tokens is fixed. Only 88,862,718 BRD tokens exist, and no more will ever be created. Other loyalty programs often start designing their tiers from the bottom up, and when a number of customers exceed the highest tier, more tiers are added on top to accommodate. These companies know the majority of users will have a small number of loyalty points, but don’t know the maximum amount of points any one user might collect.
Our challenge is unique, because we know the maximum amount of tokens any one user could hold, and the average distribution amongst all users will change drastically over time. Our solution for this is what we call the ”rewards waterfall”, which describes how we will tackle the problem of a top-down rewards tier structure.
The first step is to establish the highest tier, labeled as “Tier 1” below. At first, there will only be one perk (“Perk #1”), and it will be available only to Tier 1 members. When we unlock a new perk (“Perk #2”), Perk #1 will be made available to Tier 2 members, and both perks 1 and 2 will be available to Tier 1 members. As our user base grows and we add more and more special perks, they will cascade down to the lower tiers, enabling more users access to them.
(Note: The amounts of BRD listed above may be subject to change. Also, Bread maintains some flexibility regarding which rewards cascade downward and when, but each tier will always have access to all perks available to lower tiers, and Tier 1 will always be the highest tier.)
It’s interesting to note that the number of BRD tokens required to achieve each tier will never change. This means current Tier 1 members will always be Tier 1 as long as they hold on to the required amount of BRD tokens, and they will always enjoy every perk we offer. Perks will slowly make their way down to members of lower tiers, which will make them more obtainable, but BRD tokens could also become harder and harder to come by, making all perks truly special.
The white paper for our token lists many of the perks we are planning, such as dedicated phone support or early access to new features and products. The white paper can be found on our token site here. Of course we are also developing a broad range of exciting additional perks that we look forward to keeping secret until they launch.
To demonstrate our dedication to this token, we gave it utility from day 1, starting with the ability to participate in our crowd sale and store your BRD directly within the Bread app: something we don’t believe any other project has done. Since participants used the Bread app during the token sale process, it’s natural for them to keep their tokens in the app as well, which means these individuals will be first to see the perks as they arrive.
We believe our loyalty program, with a fixed supply of rewards tokens and the rewards waterfall, is an exciting and revolutionary way to encourage active user participation. This is just the first step of our plan to position Bread as the preferred crypto wallet, one that gives back to its users and offers more than the basic functionality found elsewhere. We are redesigning banking from the ground up using the power of decentralization, and we hope you’ll join us along the way.
If you enjoyed this post and want to hear more about the Bread Token, sign up for our token newsletter. If you're an old school bitcoiner who just wants to hear about company and industry news, sign up for our general mailing list.
[Edited by James MacWhyte]