Archetype has taken the lead in a $3M Seed funding round for Stack, a cutting-edge platform aimed at transforming the traditional loyalty points system through blockchain technology.
This significant investment round is bolstered by the support of notable firms such as Coinbase Ventures, Scalar Capital, and A. Capital, alongside an impressive roster of angel investors including tech luminaries like Balaji Srinivasan, Nadav Hollander, Henri Stern, Cooper Turley, and Colin Armstrong.
A new era for loyalty points
For decades, loyalty points have been a cornerstone of consumer engagement, serving as a key component in the marketing strategies of myriad companies across industries—from airlines like Delta to retail giants like Starbucks and Sephora. As we venture deeper into 2024, the necessity for these loyalty programs, along with the identity frameworks they employ, to transition onto blockchain platforms has become increasingly apparent. This shift is essential to cater to the evolving demands of the next generation of consumer applications, ensuring that loyalty programs remain relevant in the digital age.
Stack emerges as a leader in this transformative phase, offering blockchain-based solutions that enable crypto companies to effortlessly integrate customizable point systems into their applications. This innovation not only ensures the trustlessness and auditability inherent in blockchain technology but also allows for the seamless allocation of points onchain, management and analysis of point allocations, and the design and publication of leaderboards. Furthermore, Stack facilitates trustless token redemptions on EVM chains, marking a significant advancement in the utility and application of loyalty points.
Bridging traditional and crypto-native assets
The integration of loyalty points onto the blockchain represents a paradigm shift, merging the issuer-controlled, non-financial essence of traditional points with the transparency and composability of crypto-native assets. This synthesis gives rise to a novel on-chain primitive, ideally suited to enhancing user identity, aligning incentives, and fostering gamified community building.
Stack’s platform empowers developers to link onchain and offchain events to point redemptions in innovative ways, such as awarding points for collecting an NFT or engaging with a social media page. This capability significantly expands the potential touchpoints between companies and their customers, facilitating more immersive customer journeys and comprehensive community engagement programs.
The advent of lower transaction costs on emerging Layer 2 and Layer 3 platforms further amplifies the impact of these onchain point programs. By making transactions more cost-effective, these technological advancements are driving the increased adoption of new consumer applications built on crypto rails. Initiatives like Rainbow Points, Farcaster’s Warps, and 9dcc’s Network Points exemplify the potential of these programs to catalyze broader acceptance and utilization of crypto-based consumer applications.
The visionaries behind Stack
At the helm of Stack is a team of crypto-native engineers, led by CEO and Founder Graeme Boy, a veteran in the web3 space with previous roles as CTO of Mirror and Head of Engineering at Dharma. Under Boy’s leadership, Stack’s team boasts a proven track record of successfully onboarding millions of users to the crypto ecosystem, demonstrating their expertise and dedication to expanding the reach and impact of crypto technologies.
Stack’s unique position at the crossroads of innovative blockchain technology and user-centric design makes it an ideal catalyst for bridging the gap between traditional consumer engagement strategies and the emerging world of crypto. By providing tools that enable both web2 teams and web3-native teams to engage more effectively with their communities, Stack is laying the groundwork for the next generation of crypto applications. This initiative promises a future where loyalty points play a pivotal role in the digital economy, fostering deeper connections between brands and their customers.
Conclusion
The $3M Seed funding round led by Archetype for Stack marks a significant milestone in the evolution of loyalty programs, heralding a new era where blockchain technology plays a central role in consumer engagement. By pioneering the integration of loyalty points onto the blockchain, Stack is not only enhancing the functionality and application of these points but also bridging the gap between traditional and digital consumer engagement strategies. As Stack continues to develop and refine its platform, it stands poised to revolutionize the way companies connect with their customers, driving the future of loyalty programs in the digital age.
