Bitcoin Forum

Hello all,

I've been involved with the crypto space for over a year now, and while I'm not the most technical person out there, I do have an understanding of bitcoins and altcoins.

I'd like to start my own coin for my business with the sole purpose of having it serve as a loyalty based coin, where customers will receive a certain amount of this coin as part of a loyalty program. Obviously it could be mind as well and redeemed for a certain amount of services from my business.

I'm just wondering, how hard is it to launch a coin? What considerations need to be made?

Do it

Do it on Nxt, using either Nxt Asset Exchange or the (soon to be launched,hopefully) Nxt Monetary System . If it's purely intended as an internal loyalty token, then you can create the coin/token/asset within a few minutes, leaving you to concentrate on distribution to customers, redemption schemes, and the rest of the loyalty system.

Take a look at:

https://nxtforum.org/asset-exchange-general/
and
https://nxtforum.org/monetary-system/

Yes, on NXT.
The cost to issue an asset is ~$30, asset = currency for your purposes. Customers will need to install NXT client and then you send them as many of that asset (currency) as you want according to your business plans.

I'm familiar with nxt and even owned some for the past 6 months. I'm not sure I want to release on nxt. Most of these clients aren't involved in crypto in the first place so I'd like the system to consist of the least amount of friction possible with the loyalty program. Nxt is a little too technical.

I would also be looking for a fully branded coin around our business.

First off, is this is a stupid idea? Is a crypto even necessary?

What about something like CoinCreator to get started?

I also know little about hash rates and hashing power. If you launch a coin, what considerations need to be made there?

They don't need to do much, they can sign up at a site like https://trade.secureae.com  which is a front end for NXT AE, and you send them asset (currency) to their NXT address that https://trade.secureae.com provides them with. That's as frictionless as could be.

If you launch your own PoW coin, they'd need to deal with downloading and syncing the blockchain, which is much more effort than using the above solution.

If I were doing this I would not make it mineable. Since this coin is going to be an Air Miles for your business then I would want to control it.

Make it PoS and premine 100%, keep it all. Hand it out as they make purchases. 1% or whatever you deem fair. Set your own price on the coin. Since its only going to be used in your business you are going to want to have control of the price and how much is out there. It will never be traded on exchanges only redeemed in store.

Mobile wallets are a must.

low staking interest.

First ever reward program on block chain technology. You'll make the news simply because you did that.

i was thinking that, but what's the point of a 100% premine coin? what benefits are there with a 100% premine coin versus something that is not even a coin at all. I can just say that i have 1,000,000 loyalty points and not have a coin in the 1st place.

thoughts?

RibbitRewards is exactly what you are suggesting, check it out. www.ribbitrewards.me maybe you could use the progam they are already working on.

looks cool, but i don't think it's exactly what i'm describing (unless i'm misunderstanding).

RibbitRewards is like a crypto version of Delta SkyMiles. RibbitRewards are created when people transact on the RibbitRewards Marketplace as an incentive to use the marketplace. So maybe not exactly like your idea, but very very close.

Don't do NXT

Agreed. Although I would want it branded to our company.

Anyone have any opinions on the 100% premine?

Well, it uses a blockchain so it gets all the benefits of a crypto. No one out there can forge/counterfeit your loyalty points.

It also prevents big miners from jumping on, mining themselves plenty of coin and the buying things at your store for relatively cheap.

Control and distribution. If its not traded on an exchange and they only way to get it is to spend fiat in your store then you'll know there is no one person hoarding them and buying all your inventory for cheap. Setting the value of each point to a fixed dollar amount with the control of the reward points will also prevent someone buying them cheap and then using them when they are worth more. If the market is not liquid enough you will not be able to sell them on the exchanges for fiat without affecting the price in a negative way.

Treating this like any other alt makes it a currency and not typical a rewards program like air miles or canadian tire money. So maybe you are making an alt coin that can be spent in your store then.

You might be on to something with the PoS idea...

The issue I see if that our customers would need to  download a wallet/client of some sort in order to get these coins/points. I would like to distribute the points as I see fit, and in order to distribute, I would to have a client created?

We are in the service sector and project management is important to us. We relymon our clients to provide us what we need on a regular timely basis.  If they can, then our job is made easier and we want to reward them for this. longer term, I'm thinking that other businesses in our industry might have a use for this and as such a longer term goal would be for those businesses to implement this coin. At that point, if my long term goal was to have this coin apply to all those in our industry, then maybe a 100% premine isn't a great idea?

Just throwing ideas around.

I don't think Nxt is idea for you since most of your custumer are not into bitcoin. A simple mobile wallet will be okay for this project.

If you create your own coin and don't use some other coin's network, you'll have to maintain your own network. That's why NXT makes it easy not only to create a coin but also maintain it, it relies on 11 month track record of NXT network. Of course you can create your coin on top of Counterparty, but it relies on Bitcoin network and that one is slower. Counterparty is also an option, but 5x slower to process transactions on average than NXT.

dogeparty is also an option if you want to go that route.

Right. But they haven't enabled trading yet. Not sure if the OP needs to trade their coin.

ahh true ^_^

i'm thinking that trading the coin could be something that would make it interesting but i'm not sure exactly yet. still trying to wrap my head around that. what's your thoughts about being able to trade a loyalty based coin? especially if it would be geared for the industry as a whole...

or maybe i'm just getting ahead of myself talking about the industry as a whole. i guess i would want to future-proof the coin in case i decide to go a certain route.

If the services people can buy in your business for this coin are useful to people, then there can be demand for the coin and trading could be successful.

Allowing coin trading could be useful for a loyalty system......that would alllow customers to both cash in their SultanPoints ( ;) ) and, on the other hand, to buy in more SP if they needed more for a particular purpose (like needing 200 more SultanPoints to get that flight to Hawaii...)

Allowing coin mining could be a disaster, though. Having your loyalty coins supply (and thus price) determined by miners who have no investment in your system could cause some serious problems.

As for the rest of the 2nd gen crypto-currencies, such as MasterCoin, Ethereum, Counterparty, NEM, Qora......take a  look at this:
http://coinmarketcap.com/assets/

Most of the assets/tokens in that list are from either Nxt (22 out of 32) or Counterparty (5 of 32), with a couple from MasterCoin and BitShares......Nxt is simply the best system to use right now.   

I see. So are you saying you prefer a 100% premine coin?

Also, I can't say I'm too fond of Nxt as a place to launch this.

don't bother....

crypto is not popular with 'regular people' and you will spend too much time trying t o educate them to be worth it.

You don't have to tell them that it's based on a crypto system.
From most customers point of view, the system could just work exactly like AirMiles...scan your card, get your points, redeem your points.
The more crypto features (like trading) don't have to be used by everyone.

@princesultan1:

Nxt has been running smoothly for almost a year now, and has a massive community with a lot of projects based on the Nxt platform.
Check out our main forum here:
www.nxtforum.org
and take a look for yourself.......

There have been a lot of attacks on Nxt here on BTT, but 90% of that has been pure bulls**t.
Nxt isn't perfect yet, but it is a very solid, promising system.

If you're really not into using Nxt, one of the (probably non-scammy) Nxt clones like NeXT Horizon (NHZ) or Nxt Fair Distribution (NFD) can also offer the same features, but with a much smaller network/community support.

i feel that nxt is doing some pretty cool things, but i also don't want to rely on ntx. i'd rather launch something independent.