Please describe your proposed solution
Loyalty and rewards programs have become a backbone of the Consumer Retention-Marketing Playbook. With the emergence of new technologies, there is an exciting new opportunity to monetize consumer rewards, and globalize new markets.
Anvil, in collaboration with Nuvola, is excited to bring the second phase of our collateralization platform, C-Hub - monetizing unused loyalty rewards. This is an issue that impacts consumers and brands globally; thus, solving it offers a solution that elevates the experience for all parties.
During our research, which we will dive into later, we have concluded this is a viable vision with immense implications if done correctly. We are prepared to embark on this journey to establish an industry leading, innovative App, on Cardano. This product will reflect the experience of the Anvil and Nuvola teams collaboratively, and we are fit for the task.
Goals for Fund 13
As stated in our last proposal, C-hub is the next logical progression in our product roadmap, as we intend to create a more ‘web 2’ focused platform, capable of a multitude of functionalities. We aim to create a functioning plug-in, central platform for trading, custodial wallet, and custom oracles for maintaining the values of the rewards. We have already created branding, wireframes, and are creating a demo video of the product in use (will likely be linked in comments). We are ready to begin development on this project.
Platform/Plug-In Goals
Our goal is to create a platform, and web based plug-in, that would incorporate directly into existing reward protocols and apps.
The platform itself would be a central point for users to view all of their rewards in a single setting. It would also function as a peer to peer marketplace to buy/sell/and trade these collateralized assets between users. We already have this framework built out with our marketplace, Wayup, which will be extremely helpful in reducing the total costs of the project. We would like to create this in a web app and standalone mobile app.
In addition to the platform, we aim to create an easy to use plug-in that would host all the same functionalities as C-hub. This will allow us to infiltrate the web2 market by having a simple, on-site, plug-in that companies can easily integrate into their existing platforms.
With both solutions in place, users will be onboarded through the plug-in, and remain in our ecosystem via the platform. There will be a seamless flow from the plug-in to the app to allow users to easily transfer between the plug-in and app.
Custodial Wallet
One of the most important features of the C-hub experience is to create a flawless user interaction. To achieve this, we will set out to create a Custodial Wallet using a variety of auth systems including biometrics, pin, or signature. Ultimately, the wallets will be fully exportable to any other Cardano wallet interface.
The purpose of this wallet is to provide speed and frictionless interaction with the app. Users should know it as their profile with the goal to support fiat transactions. We will also support On-ramping/off-ramping of fiat. Fiat will be converted to cover Cardano TX fees for collateralizing and de-collateralizing.
Oracles
As part of our process, we will need to understand and analyze each digital asset to provide an estimated value. Through the use of oracles, we will be able to establish the price of each collateralized asset. We will set out to create a custom oracle, allowing our consumers to establish a value for each asset, which will be critical in the creation of the market.
When users start to bridge their points into collateralized assets to sell and trade, a pre-established value will be added. This will then allow the user to trade their collateralized asset at its market value, or sell to another user who is interested in it.
Establishing Partnerships/Customers
One of the biggest obstacles to web2 adoption is getting brands and companies on board. We understand this, and that is why we are prepared to leverage our personal/business relationships to take C-hub global.
Our intent is to captivate big Airline, Hospitality, Credit Card, Gaming, and Retail companies to adopt the C-hub model. Interconnectivity between all rewards programs, and the possibility of unlocking new global digital markets. We will attract these companies with an enticing transaction based model, as well as royalties, to ensure that they are well incentivized to adopt this groundbreaking technology.
Exploring the Markets
Case study;
Total global dollar value of unused loyalty/rewards points across all industries has reached $300-$500B per annum.
Forbes states that over $100 billion in unused loyalty points are adding pressure on companies to relieve themselves of the obligation to repay these debts. Source
The US’ top 5 Airlines alone saw a staggering $27B in losses from airline miles going unused. Including the remaining major airlines globally takes losses soaring past $150B. Source
This industry presents a ripe opportunity for innovative efforts. Our idea not only creates a new opportunity for consumers, but presents businesses with the opportunity to monetize their market activity through set fees. Additionally, through the use of royalties on the native assets, we will be able to offer businesses long term value.
General Statistics and Metrics
<u>Potential Revenues:</u>
Conservatively using the low end of $300 Billion of unused points/credits:
If the value being transacted via C-Hub, with an average of 5% fees,
- At 10% of value transacted
- $30 billion * 5% = $1.5 billion of additional revenues.
- At 25% of value transacted
- $75 billion * 5% = $3.75 billion of additional revenues.
- At 50% of value transacted
- $150 billion * 5% = $7.5 billion of additional revenues.
Current Global MarketCap for unused loyalty/rewards points across all industries has reached $300-$500B per annum.
Current Opportunities
C-Hub has been in development for over 5 months. We are currently leveraging our personal and business relationships for real world practical implementations of this Platform. Outreach is happening daily and we are being supported by major players in the Cardano Ecosystem. We will be leveraging these relationships to start building new avenues for our Platform's adoption. Analyzing the current state of the market, and projections for 2025, we think we are primed to deliver this game changing product as the markets themselves start to change. We will be reaching out to airlines globally, as well as hospitality, sports, and all other point based member rewards systems to help them implement C-Hub in their day to day products.
The future of C-hub?
We have a very long term roadmap in mind for this project. C-hub is a product that will create a global market of asset trading out of an outdated/disconnected industry. With the right partnerships, we will be able to scale globally, building a user base across the world. Ultimately, having every rewards program working through our platform is our goal. A planet of connected rewards systems, allowing users the ultimate flexibility in making their rewards work for them.
Not only does it work for the consumers, but businesses themselves will be able to relieve themselves of some of these debts by counteracting them with a fee model on each transaction.
Part of our planning includes securing a strong partner for the Cardano Partners: Enterprise R&D and Cardano Partners: Growth & Acceleration if they are available in Fund 14. This product has the opportunity to scale through all the ideation stages of Catalyst, into the real world.
We can’t think of a much better success story for the Cardano chain!