Stack Raises $3 Million in Seed Funding for On-Chain Points Infrastructure
Stack, a startup focused on developing on-chain points infrastructure, has successfully raised $3 million in seed funding. The funding round was led by venture firm Archetype, with participation from Coinbase Ventures, Scalar Capital, A.Capital, and several other prominent investors in the crypto space.
Archetype Founder Ash Egan expressed his excitement about Stack’s potential in the emerging application era for crypto. He believes that as we enter this phase of the cycle, consumer products and infrastructure will play a crucial role, and Archetype remains committed to supporting them.
The Framework for On-Chain Points
Stack aims to build a comprehensive framework for assigning and tracking points on-chain. This includes point allocations, leaderboards, and trustless token redemption. The platform allows users to redeem their points for ERC-20 tokens, Ethereum (ETH), or other assets. By providing more affordable and simpler on-chain points systems, Stack intends to discourage “farming,” which refers to the abuse of a project’s financial system for personal gain.
The CEO and Founder of Stack, Graeme Boy, believes that on-chain points offer significant value and security to loyalty programs. He also predicts that they will drive faster consumer adoption for these applications while reducing risks for both brands and consumers. Boy highlights how point systems align seamlessly with the inherent strengths and use cases of blockchains.
Incentivizing Community Engagement with Crypto Points
Crypto points have gained traction within the web3 industry as a means to incentivize community engagement and add gamification elements to projects. According to a previous report by The Block, projects had given away a total of 115 billion points by February 17th.
The concept of crypto points aims to strike a balance between encouraging user participation and discouraging selfish behavior within the ecosystem. By rewarding users with points, projects can foster a sense of community and loyalty while dissuading individuals from exploiting the system for personal gain.
Hot Take: On-Chain Points Revolutionizing Loyalty Programs in Crypto
Stack’s successful seed funding round highlights the growing interest in on-chain points infrastructure and its potential impact on loyalty programs within the crypto industry. With its innovative framework, Stack aims to revolutionize how points are assigned, tracked, and redeemed on the blockchain.
This development opens up new possibilities for brands and consumers alike, offering increased value, security, and simplicity in loyalty programs. The alignment between point systems and blockchains’ strengths enhances the overall user experience while reducing risks associated with traditional loyalty programs.
Furthermore, the rise of crypto points introduces gamification elements that incentivize community engagement and foster a sense of belonging among users. By integrating these elements into projects, developers can create more vibrant and active communities that drive adoption and participation.
As we enter the application era for crypto, it is essential to recognize the potential of on-chain points infrastructure in transforming loyalty programs. With Stack leading the way in developing this framework, we can expect to see increased innovation and adoption in this space.
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