What is the Starbucks NFT-Based Loyalty Program?
The world’s largest coffee chain hinted at a new Web 3.0 experience in May, and later revealed plans to launch a series of NFT collections designed for unique experiences, community building, and customer engagement. The Starbucks Odyssey program will be rolled out later in the year, targeting reward members and employees (whom Starbucks refers to as partners). Partners will earn digital stamps that can be purchased and traded as limited edition NFT collectibles or blockchain tokens representing ownership of digital artwork and collectibles.
This initiative extends the current Starbucks Rewards program, where partners can participate in interactive games and challenges that test their knowledge of coffee and the Starbucks brand, all within the Starbucks app. These activities will allow them to earn journey stamps.
Starbucks will also facilitate the sale of limited edition NFT stamps. Members can purchase them using either cryptocurrency or a credit card, and there will be no need for a crypto wallet or cryptocurrency to claim ownership of their loyalty. The Starbucks Odyssey web app will feature a secondary marketplace, enabling stamp owners to buy and sell their collectibles at their convenience.
Starbucks has outlined incentives for collecting these stamps. NFTs will help users level up within the Starbucks Odyssey app, unlocking potential rewards like access to private events, exclusive merchandise, virtual drink-making classes, and a visit to Starbucks’ Costa Rican coffee farm. Some of the proceeds from NFT sales will support undisclosed charitable causes, as per the company’s statement. CryptoChipy reports that the Gemini-owned NFT marketplace, Nifty Gateway, is responsible for ensuring secure NFT storage and marketplace functionality for the Starbucks Odyssey program. Nifty Gateway has previously worked with notable artists like Beeple and The Weeknd, and recently launched a Publishers initiative to allow brands and creators to develop NFT drops using its platform.
The Starbucks Odyssey program waitlist is now live for interested individuals.
Why Did Starbucks Choose to Partner with Polygon?
Polygon is an Ethereum layer 2 blockchain that offers faster, more affordable, and energy-efficient transactions compared to Ethereum’s mainnet. The Ethereum sidechain is gaining popularity among brand partners looking to enter the crypto space. Companies like Coca-Cola and Reddit have launched NFTs using Polygon, and Disney also partnered with the network for its Web 3.0 accelerator program this past summer.
When Starbucks first teased its Web 3.0 initiative, it faced some criticism from employees concerned about the environmental impact of certain NFT platforms. Therefore, it’s no surprise that Starbucks chose to work with a proof of stake network that eliminates the need for crypto mining. Polygon currently consumes significantly less energy than Ethereum’s proof of work network.
The announcement of the Starbucks and Polygon partnership had an immediate positive impact on the value of MATIC, Polygon’s native token, which saw a 3% increase in value and a 107% spike in trading volume within 24 hours. This collaboration has added a new use case to the Polygon network, driving further demand for the MATIC token.
Web 3.0 is gaining momentum with global adoption, as major industry players from various sectors find ways to establish themselves in the space. Companies in the automotive, technology, restaurant, and coffee industries are increasingly embracing Web 3.0. CryptoChipy believes the recent moves by Starbucks were highly anticipated.
