Fractional Equity Rewards Using Pre-Purchased Share Inventory
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Solution Overview
Problem
Conventional reward programs fail to build long-term user loyalty due to one-time rewards, cumbersome redemption processes, and siloed administration, leading to confusion and inefficiency.
Innovation Solution
A loyalty platform that aggregates user purchases to provide equity rewards, automatically tracking transactions, offering dynamic equity allocation, and allowing users to select loyalties within markets, enabling seamless equity distribution and rebalancing without manual proof or account management.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If conventional reward programs use one-time rewards and require manual proof submission, then users can receive immediate rewards, but user loyalty is not maintained long-term and administrative effort increases
Solution Approach 1:
The system automatically tracks user purchases through integrated data feeds from merchants and payment processors, eliminating the need for users to manually record or submit proof of purchases. The platform self-manages the verification process by comparing transaction data against reward program criteria, thereby reducing user effort while maintaining reliable loyalty tracking over time.
Solution Approach 2:
The patent replaces the manual mechanical process of users recording and submitting proof with an automated electronic system that continuously monitors transactions through data feeds. This substitution transforms the loyalty tracking from a user-intensive manual process to an automated electronic verification system, improving both ease of operation and long-term reliability.
2Productivity
If points-based rewards programs are used with expiration dates, then businesses can control reward costs, but users experience additional burden and reduced loyalty
Solution Approach 1:
The system changes the parameters of reward distribution by implementing dynamic reward rates that automatically adjust based on user spending patterns, business performance metrics, and program objectives. Instead of fixed expiration dates, the platform uses variable reward percentages that can increase or decrease, providing administrative control while maintaining user engagement through adaptive incentives rather than punitive expiration mechanisms.
3Adaptability or versatility
If multiple individual businesses administer their own reward programs, then each business can customize rewards, but confusion increases and administrative costs rise
Solution Approach 1:
The patent merges multiple individual business reward programs into a single unified multi-merchant platform. The system consolidates reward tracking, point accumulation, and redemption processes across participating businesses while allowing each business to maintain its own reward criteria and parameters. This consolidation reduces system complexity from multiple separate programs to one integrated platform, eliminating user confusion while preserving business customization through configurable program settings.
Solution Approach 2:
The platform implements a universal reward system that functions across multiple businesses and reward program types. The core infrastructure provides universal purchase tracking, point accumulation, and reward distribution capabilities that can be customized for different business needs. This multi-functional system serves diverse reward programs through a single platform, reducing the number of separate systems required while maintaining adaptability to various business requirements.
4Productivity
If unrealistic reward goals requiring high spending thresholds are set, then businesses can control reward expenditure, but user engagement and loyalty decrease
Solution Approach 1:
The system implements partial reward distribution where users receive rewards proportional to their spending rather than requiring completion of high spending thresholds. Instead of withholding all rewards until a goal is met, the platform distributes partial rewards continuously based on spending patterns, making rewards more accessible to users at all spending levels while still controlling overall business expenditure through the configurable reward rate structure.
Data Source
AI summary
Herein disclosed are systems and methods for distributing fractional equity rewards to users of a loyalty platform based on tracked user loyalty purchases. The disclosed systems and methods may reduce time between a user loyalty purchase and distribution of a fractional equity reward determined based on the user loyalty purchase. In one example, by maintaining a pre-purchased supply of shares within an inventory account of the loyalty platform, and by distributing fractional equity rewards to user accounts on the loyalty platform from the pre-purchased supply, a reduction in reward distribution time may be enabled. Further, by maintaining the pre-purchased supply of shares of stock within the inventory based on a running average rate of fractional equity reward distribution, and predicted events, the amount of stock in the inventory may be intelligently controlled to reduce excess inventory, while reducing a probability of reward distribution delay.