Sandblock leverages cutting edge blockchain technologies to reward customers for their engagement and loyalty using cryptocurrencies
An overview of how the token works for the various actors of the Satisfaction protocol and how it flows between Token holders, Brands, and Customers
The Satisfaction Token is a utility token, it is used within the Satisfaction protocol and more generally in Sandblock’s ecosystem as a medium of exchange.
The Satisfaction Token (SAT) is an ERC20 token and is therefore tradable on any platform (exchanges) which eventually makes it volatile as any other cryptocurrency.
Each brand joining Sandblock’s ecosystem create it’s own, dedicated Branded Token. Branded Tokens are not ERC20 tokens and can only be exchanged within the Satisfaction protocol, using this mechanism, all Branded Tokens will share the same value and it ensures that no secondary market will be created within the ecosystem.
— Sandblock (@sandblock_io) March 2, 2018
Branded tokens are exchanged on a daily basis within the Satisfaction Protocol, either when a Brand gives a reward to its customer, when a customer decides to use his Branded Tokens to get a discount and make a purchase or simply when a customer decides to convert them back into SAT.
SAT — Token holders
Whether they acquired Satisfaction Tokens during the token sale or on an exchange platform or by converting Branded Tokens back, token holders are the ones who ensure the autonomy and independence of the ecosystem. Indeed, Brands need to acquire Satisfaction Tokens to create/refill their Branded Token supply and token holders are here to ensure a decentralised acquisition process at fair price.
Token holders are central/key in the ecosystem as they may eventually sell their SAT to Brands willing to distribute more Branded Tokens. This process ensures that the Satisfaction protocol remains autonomous and independent of any Brand over representativeness in the ecosystem.
Customers receive Branded Tokens for their loyalty (by being a frequent customer), their feedback (by providing review and answering surveys) or by engaging with Brands (through contest, games etc..).
Once customers acquire Branded Tokens, they can either use them to purchase goods or services to the very same Brand, barter them on the internal marketplace for other Branded Tokens, or hold them to gain a special status (e.g Premium / Gold member) and enjoy discounts or advantages from the Brand.
Customers can become SAT token holders by converting their Branded Tokens back into SAT but this process has a cost (“Withdrawal”, described in our White Paper) designed to increase the value of all customers to remain within the ecosystem and mostly use Branded Tokens.
Customers are basically Branded Token holders! The protocol is designed to incentivise them to either keep their Branded Tokens (or barter them for other Branded) or use them to receive goods and services.
Brands acquire Satisfaction Tokens on the public market (on exchanges or during the token sale for instance) to create their supply of Branded Tokens.
Once Branded Tokens are created, customers who acquire them can transform them back to Satisfaction Tokens again by going through the “Withdrawal” mechanism (described in our White Paper) which induces a loss of 25% of the tokens. This “burn” mechanism has also been designed as a safeguard for Brands that would not join if their tokens could go back directly on the public market.
Brands also get Branded Tokens back when customers decide to use them. When this happens, their available supply increases and they can use this supply to reward customers later on or convert back to SAT some of them (without “burn” fees) if the supply is higher than what they need.
They are the most important part of the ecosystem as they are the one creating the added value of the ecosystem.