Coinspeaker
Polygon Labs Reportedly Paid $4M to Sponsor Starbucks Crypto Project
Polygon Labs, the brains behind the creation of the layer 2 scaling solution built on the Ethereum ecosystem, paid $4 million to sponsor Starbucks’s crypto endeavor two years ago. According to a CoinDesk report citing two people familiar with the matter, both companies entered into a strategic partnership to build and host the coffee maker’s loyalty program, Starbuck Odyssey, on Polygon.
A Competitive Hunt
Coinspeaker wrote about the duo’s partnership in 2022. However, Starbucks and Polygon Labs did not disclose the deal’s financial terms of the agreement at the time.
Starbucks announced on March 15, 2024, that it would discontinue the program. The company halted the program to focus on what is to come in the Web3 economy.
Following the discontinuation of the Starbucks Odyssey on Friday last week, two people familiar with the matter disclosed that Polygon had paid millions of dollars to sponsor the project and host it on its chain.
Sources told CoinDesk that three blockchain protocols wanted to partner with Starbucks to execute the project.
“The payout ended a competitive hunt by proponents of at least three blockchain ecosystems who wanted to partner with Starbucks,” reads the report.
58,000 Active Participants
The Starbucks Odyssey aimed to blend the Starbucks Rewards loyalty program with non-fungible tokens (NFTs) to elevate customer engagement.
With around 58,000 active users, the program offered a five-tiered system. Users can create, earn, and collect digital collectible stamps in the form of NFTs, enhancing their overall experience.
Before Starbucks discontinued its Odyssey program, the multinational coffeehouse chain introduced its own NFTs on the platform to attract more users.
In March 2023, Starbucks launched “The Siren Collection”, an NFT collection that sold out within minutes of its release. The collection, priced at $100 each, featured 2,000 different digital artworks and characters showcasing the company’s iconic Siren brand.
Growth Strategy
Polygon’s partnership with Starbucks was part of its growth strategy, aiming to secure high-profile collaborations with leading consumer brands worldwide.
The protocol sought to enhance its presence and become more popular among other blockchains by offering these brands an entry into the crypto space.
According to CoinDesk, the network has shifted its focus from forging partnerships to developing innovative technology.
“These types of big flashy deals are a remnant of the past and the previous leadership’s strategy. The company, the main developer of the Polygon blockchain, is now more focused on building innovative tech than inking partnerships,” said a person familiar with the matter.
Polygon Labs Reportedly Paid $4M to Sponsor Starbucks Crypto Project
