Dynamic NFT Reward System for Transparent Loyalty Engagement
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Solution Overview
Problem
Existing incentive and loyalty programs struggle to maintain user engagement due to increasing distractions and lack of transparency in their operation and management, while users find it difficult to engage with non-fungible tokens (NFTs) without the necessary knowledge.
Innovation Solution
A method and system that generate a media object associated with a trigger action, monitor user activity to detect the trigger action, modify the media object, mint it as an NFT on a blockchain network, and associate a dynamic value that changes over time with the NFT, allowing it to be redeemed in electronic payment transactions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If existing incentive and loyalty programs are implemented, then user engagement is encouraged, but user engagement decreases due to increasing distractions and lack of transparency
Solution Approach 1:
The patent introduces NFTs as an intermediary between the loyalty program and users. These NFTs serve as transparent, verifiable tokens that mediate the reward system, allowing users to track and verify their rewards on the blockchain while maintaining engagement through gamified elements and clear visibility of program operations.
Solution Approach 2:
The system implements continuous feedback mechanisms where user actions are monitored, NFTs are minted as rewards, and the dynamic values are updated based on algorithmic rules. This creates a transparent feedback loop where users can see the direct connection between their actions and the rewards received, enhancing both engagement and transparency.
2Adaptability or versatility
If NFT tools and ecosystems are used, then dynamic rewards can be provided, but user interaction becomes difficult without necessary knowledge
Solution Approach 1:
The system automates the NFT minting and distribution process, making it self-service oriented. When users complete trigger actions, the system automatically monitors, modifies media objects, mints NFTs, and provides them to users without requiring manual intervention or deep technical knowledge. This maintains ease of operation while enabling dynamic rewards.
Solution Approach 2:
The system performs preliminary actions by pre-configuring the NFT minting processes, media object modifications, and value algorithms before users interact with the system. This preparation work is done in advance, so when users engage with the program, they simply need to perform trigger actions without needing to understand the complex underlying mechanisms.
3Measurement precision
If manual NFT management is required, then precise control over rewards is achieved, but system complexity increases
Solution Approach 1:
The patent replaces manual mechanical processes with automated computational systems. Smart contracts on the blockchain automatically handle NFT minting, value calculation, and distribution based on predefined algorithms, eliminating the need for manual intervention while maintaining precise control over rewards. This substitution reduces system complexity from a manual operations perspective.
Solution Approach 2:
The system employs multi-functional smart contracts that handle multiple operations (monitoring, modifying media objects, minting NFTs, calculating values, and distributing rewards) through a single automated mechanism. This universal approach maintains precise reward control while reducing overall system complexity by consolidating functions.
Data Source
AI summary
A method includes generating a media object; associating the media object with a trigger action; monitoring user activity of a user to detect an occurrence of the trigger action by the user; in response to detection of the occurrence of the trigger action by the user, modifying the media object to generate a modified media object; minting the modified media object as a non-fungible token (NFT) on a blockchain network; associating a dynamic value with the NFT, the dynamic value configured to change as a function of at least time according to an algorithm; providing the NFT to the user; in response to the user initiating redemption of the NFT in connection with an electronic payment transaction having a transaction amount, determining the dynamic value of the NFT based on the algorithm; and processing the electronic payment transaction by applying the dynamic value to the transaction amount.