Could Loyalty Tokens Put DeFi in Front of the Masses?

DeFi was once a niche corner of the cryptocurrency segment, dominated by the crypto-backed stablecoin Maker, and with mechanisms that few understood.

However, in 2020, DeFi has become the powerhouse of the cryptocurrency markets, hitting close to ​$12 billion​ in total value locked in late September. With an explosion of new projects into space, including lending, synthetic assets, and automated market makers, the craze for decentralized financial products doesn’t seem to be going anywhere anytime soon.

A sure sign that any movement is expanding beyond its niche origins is when established projects and businesses start to jump in. ​GreenPower​, a global rewards currency, has been around since 2017. However, the project is now taking the opportunity to expand its offering, integrating DeFi innovations to help spread the phenomenon to mainstream users.

GreenPower is the anchor currency in a decentralized system of next-generation marketplace incentives. Designed to bring the benefits of decentralized finance(DeFi) to the mainstream, GreenPower serves as the core asset in this innovative set of marketplace rewards.

GreenPower has recently migrated to the Ethereum platform after over 3 years on its Graphene-based mainnet. GreenPower has a fixed supply of tokens, all of which have already been distributed and are in circulation. The tokens are held by approximately150,000 accounts in over 180 countries.

GreenPower’s mainnet blockchain (called the Powerchain) has been in continuous operation since March 2017, and was an early example of what is now known in the industry as a “fair launch”. There was never an ICO or IEO. There was never a Premine or Presale. No venture capital was accepted, and no token allocations or grants were made to the founders or management team.

The new GRN token will serve as a membership mechanism for an international marketplace network called GreenAlliance. GRN will be used to determine the distribution of marketplace benefits to members of the marketplace network, as well as confer voting and governance rights to its token holders.

This change involves several other significant developments for GRN holders. The migration from Graphene to Ethereum means that GRN holders can connect their Ethereum non-custodial wallets linked to smart contracts. In doing so, they will become eligible for exclusive promotional discounts on products and can earn rewards by lending their digital assets to liquidity pools or borrowing against them.

GreenPower is also adopting a decentralized model of governance, holders with GRNin smart contracts can vote on proposals for the future development of GRN as part of a decentralized governing body called the PowerDAO.

Two additional marketplace tokens are being launched to work with GreenPower: GreenVolt and GreenAmp. GreenVolt is a universal “loyalty point” token built on blockchain technology. GreenVolt is non-denominated and trades against other loyalty points in a blockchain-based loyalty points exchange. Point holders can also convert their collected loyalty points into market-traded value in the form of a new marketplace rebate currency called GreenAmp.

To illustrate the potential of such a global loyalty network, imagine a scenario where someone could accrue loyalty points from booking a flight that they could view in a smartphone app. Using this blockchain points platform, they can exchange those points for points accepted by a merchant selling online apparel, or convert the points into cryptocurrency or even fiat currency.

The overall aim is that loyalty points become exponentially more valuable to the consumer due to the ability to spend them virtually anywhere. From a customer perspective, there is no need to buy or sell cryptocurrencies using an exchange oreven have any knowledge or understanding of crypto or the underlying technology.

For merchants, the system unlocks a world of potential by offering customers loyalty points that are more valuable than a single-vendor loyalty system. Furthermore, they can do away with all the headaches of maintaining their own in-house loyalty schemes.

As an established currency, GreenPower already has gained support from brands within the healthcare sector, including Jivaka, a natural health supplement based on herb and fruit extracts.

The team behind GreenPower has bold ambitions to bring DeFi to the masses. If the project gets it right, it could be a powerful means of gaining crypto adoption without users having to worry about what’s going on under the hood. If the GreenPower team can pull it off, 2021 may see DeFi mania reach even more dizzying heights.

Discuss this news on our Telegram Community. Subscribe to us on Google news and do follow us on Twitter @Blockmanity

Did you like the news you just read? Please leave a feedback to help us serve you better

Disclaimer: Blockmanity is a news portal and does not provide any financial advice. Blockmanity's role is to inform the cryptocurrency and blockchain community about what's going on in this space. Please do your own due diligence before making any investment. Blockmanity won't be responsible for any loss of funds.