Example of a rewards based token ecosytem built with OST (Open Simple Token)and OSTKIT
Here is a proposed example of an OST (Open Simple Token) powered token economy using a cyclical loyalty rewards and redemption system built into or added to an app, website or SaaS. It was originally posted to Branded Token Economies - Telegram group.
First, we start our subscriber acquisition model by back engineering our app's subscriber goal. I will throw a number out there for the goal, 10000 subscribers. This number is easily scaled up and some inputs to achieve this goal will be static and add no additional cost to each subscriber acquisition.
This model is proposing that an app, website or SaaS can acquire new users through loyalty incentives/rewards. Such a platform/business will want users to continue to be active and so we also include some proposed loyalty activities to let users earn tokens within the economy.
Assuming an OST Universal Wallet will soon be available for BTs, we will center our incentives and activities around our Branded Wallet which holds our own BTs and others that we can preload as featured BTs.
Our wallet will also be able to redeem aggregated BTs for our listed loyalty rewards. As an example our proposed Branded Wallet is a local music and music event app. The app profiles local bands, venues, concerts and music festivals.
Upon downloading the app, you find that you already have a BT balance shown of 10 MUSE Tokens. A friend referred you to the MUSE app and gets 10 MUSE Tokens added to their app for referring you.
The initial cost to the BT Issuer to acquire you is 20 MUSE.
For the purposes of this example, MUSE Tokens are pegged to OST at 5:1 and utilize a price oracle.
The following are ways to earn MUSE:
Retweet a band's event - 15 MUSE
Post a Band Event to FaceBook - 15 MUSE
Post an Instagram at a featured band's event - 25 Muse
Buy tickets to a Music Festival - 50 MUSE
Check In at a Venue - 15 MUSE
Get a phot with the Band and Instagram - 40 MUSE
ETC, ETC, ETC.
Let's say we have a small but growing MUSE shop with t-shirts, Tickets, Drink packages, Backstage Experiences, UBER After Rides, ETC, ETC available for exchange with MUSE. As an example the lowest MUSE priced item is 100 MUSE.
For every 10 subscriber app downloads how many will achieve the lowest priced redemption of 100 MUSE? 2 maybe 3 out of 10 subscribers max? And let's say the rest get at least 25 MUSE each in the same time period. For a MUSE payout to these 10 subscribers of say 475 MUSE that cost 95 OST or at today's price of 7 cents is $6.65 or .665 per subscriber. Initially, 10000 subscribers will cost $6650. Very competitive with FaceBook or Google.
So let's say the lowest redemption is for two drinks and cover charge at a local venue. The cost of that package to the app is $0.00 because I will have those packages thrown in for sponsorship of the venue.
I am going to charge 100 MUSE for that package and three out of 10 redeem it. I think this is a very aggressive redemption percentage.
The 10 subscriber acquisitions actually then cost 175 MUSE because 300 MUSE is returned to the Issuer/app from redemptions. 175 MUSE cost 35 OST at today's price of 7 cents or $2.45 each or .245 per subscriber. In this case 10000 subscriber cost about $2450 as MUSE is redeemed and recycled back into the economy.
In the meantime the app continues to grow and deliver value with news, alerts, calendars, discounts, prizes, MUSE token bounties, MUSE Referral awards, MUSE discounts....
Other proposed MUSE priced items might be:
Concert Tickets - local band - 150 MUSE
Concert Tickets - National Band - 300 MUSE
T-Shirt - 150 MUSE
Music Festival - 2 days - 450 MUSE
Backstage Pass - 200 MUSE
This is just a napkin presentation and a very static example of one type of token economy using OST. The areas of profit for the operator will be all the peripheral advertising and marketing that the reach of the MUSE app would provide in such a locally targeted demographic. Entertainment and BTs have an immediate future as soon as certain functions of the OSTKIT and platform are made available at beta.
I would probably jumpstart this economy with 50,000 OST at our current price of between 6 cents and 15 cents. I would mint up to 250,000 MUSE as needed or when the platform is able to reach equilibrium and sustain itself with less BT inputs and more redemption opportunities...
This particular tokenization loyalty/incentive/rewards/redemption model could be used in many different industries sustainably. Using OST and OSTKIT, a company can avoid the downsides and costs of ICOs while growning their token economy and community on a pay as you go basis.