Tokenization - New era. How it works?

Tokenization – [inlinetweet]”Creating an economic incentive for certain behavior”[/inlinetweet]

Let’s assume you are a content creator with a large following (let’s say 1 Million+) in your social media channels like Twitter or own website or blog for writing reviews on Chinese food and restaurants in America. You gain income by collecting advertising and consulting fee from restaurants and food packing companies.

In order to increase your revenue, you want to increase your reach and therefore planning a way to gain new viewers and at the same time ensure the retention of existing viewers. As a result, you think of a way to introduce gamification in your platform.

What is gamification:

Gamification has gained a lot of attention recently and is exciting because it promises to make the hard stuff in life fun. It is an application of typical elements of game playing (e.g. point scoring, competition with others, rules of play) to other areas of activity, typically as an online marketing technique to encourage engagement with a product or service.

Welcome to Blockchain and tokenization model. [inlinetweet] Create an economic model in your platform. [/inlinetweet]

You can issue these tokens to participants in various ways. For example, viewers who share your content on their social media page, reward loyalty tokens for returning viewers or viewer’s who are actively engaged in the comment section. You can also issue tokens for new registration in your platform.

Viewers who gained these tokens can spend them in restaurants or retailers where you have tie-ups. Restaurants/retailers can return these tokens to you as an exchange of discounted consulting or advertising in your platform or go to exchange for immediate fiat return.

In addition to this, you also need to make sure why people would be interested to buy or get your tokens and use it as a payment method in restaurants and retailers instead of fiat. What is there for them?

This can be achieved by building an ecosystem which supports and creates benefit for restaurant and retailers. The benefits are then shared with their customers.

In order to achieve this, following actions needs to be in place first:

• Agreement with restaurants & retailers to accept your tokens as a payment method.
• Allow token holders to get discounted price in restaurants or retail stores.
• Introduce loyalty program in restaurant and retailers where their customers will be credited with your tokens.
• Build an ecosystem of retailers where they can pool together for food items to be purchased directly from the manufacturer in bulk to get good discounts.
• Build an eCommerce site where you can sell the inventory of retailers.

Benefits for Restaurants / retailers :

• Gain new customers.
• Get discounted offers for advertising and consulting services from you.
• No Visa/Mastercard fee which usually is charged to merchants around 3–5%.
• Retailers can have easy access to audience/customers in your platform to test their pilot product or run market research.

Benefits to you :

• Tokenization will introduce gamification model in your platform which will help you to gain new viewers and ensure viewer retention in your platform.
• Use of smart contracts removes the need for any administration task.

Benefits for your viewers :

• Gain tokens for engagement and loyalty which can be used in restaurants and retail shops.
• Get discounted prices on foods and your purchases
• As a token holder, early access to special events organized by restaurants like the new year celebration, etc.
• Maybe get invited by restaurants for taste testing to their new menu or selection.