Starbucks has been an early adopter of crypto — or at least an early experimenter — since 2019 when it first started testing various pay-with-bitcoin tools, notably through its loyalty program.
Now it’s adding non-fungible tokens (NFTs) to its Starbucks Rewards loyalty program via the Starbucks Odyssey program, which will give members “the opportunity to earn and purchase digital collectible assets that will unlock access to new benefits and immersive coffee experiences.”
See also: Starbucks Launches Loyalty Program Built on NFT Tech
Specifically, members will be able to engage in “journeys” that include playing games and taking challenges that expand their coffee knowledge and give them the potential to earn experiential rewards.
Those rewards range from espresso martini-making classes and events at Starbucks Reserve Roasteries to — at the high end — visits to Starbucks’ Hacienda Alsacia coffee farm in Costa Rica. Merchandise and NFTs by both Starbucks partners and outside artists will also be obtainable, and limited edition, cause-supporting NFTs will be offered, too.
Read more: Big Brands Replacing Membership, Loyalty Programs With NFTs
The NFTs, called stamps, can be earned or purchased and will have points-based rarity. They can be collected on the Starbucks app — no special crypto digital wallet needed — and can be bought and sold on an in-house marketplace.
The program, which was announced on Sept. 12, is currently waitlisted and will roll out beginning this year.
It will be a huge win for the Polygon blockchain, which is generally considered one of the “Ethereum killer” blockchains competing with the top smart-contract platform, even though it is actually a Layer 2 scaling solution built on top of Ethereum. Minting new NFTs on Ethereum can be very costly due to high transaction fees.
Related: Blockchain Basics Series: What is Polygon? An Ethereum Killer Hedges Its Bets
Polygon is, Starbucks noted, an environmentally friendly Proof-of-Stake (PoS) blockchain. Ethereum is switching from its horribly polluting bitcoin-style Proof-of-Work blockchain into PoS-based Ethereum 2.0 this week, after a years-long process that will eventually make it scalable enough to handle payments on a broad scale.
Learn more: Ethereum 2.0 May Be Greener, but Is It Scalable Enough for Payments?
Smaller Scale, Big Success
On the other side of the loyalty program spectrum, Soapy Joe’s, a San Diego car wash firm with 17 locations, has seen a boom in business and marketing success since beginning a scavenger hunt loyalty program game with NFTs as the reward, CoinDesk reported.
The NFTs unlock loyalty program rewards that range from key chains and amusement park tickets to free annual car wash memberships. NFT-related emails have a 71% open rate — far above normal — and 2,000 customers have minted 10,000 digital collectibles.
Monkey Music
Universal Music Group (UMG) has launched Kingship, a virtual band fronted by a quartet of Bored Ape Yacht Club NFT avatars.
The Gorillaz-reminiscent act comes under the 10:22PM label, a new UMG Web3 brand, and will be headed up by executive producers/songwriters James Fauntleroy and Chauncey Hollis Jr., better known as Hit-Boy. The pair have worked with artists like Bruno Mars, Justin Timberlake, Beyoncé and Jay Z.
See also: As More Industries Jump in, a Future for NFTs Begins to Take Shape
They’ll arrange the musical end while the extremely expensive NFT apes will star in the videos. It will be the highest-profile yet use of a BAYC avatar, which have been seeing a lot of public use since developer Yuga Studios gave owners all commercial rights — something very rare in the NFT world.
Read more: Seth Green’s Kidnapped Bored Ape Shows NFTs’ Growing Commercialization
It has brought the brand, whose avatars sell for six figures, a lot of publicity. For instance, comedian Seth Green is producing an otherwise-live TV show that will star his Bored Ape.
Pulp Friction
Filmmaker Quentin Tarantino has settled a lawsuit over the creation and sale of NFTs related to his smash hit 1994 film “Pulp Fiction.” Tarantino has come to an agreement with Miramax, the studio that distributed the film, over his January sale of a series of related NFTs, The Verge reported.
Tarantino has said that the NFTs, which unlocked secrets about the story, were related to the script, which he has rights to. Miramax said they were covered under its rights to an “emerging technology” — after the NFT sale got huge attention after the first one sold for more than $1 million.
Aside from the money, a trial would have the potential to set a precedent about who owns the rights to NFTs based on trademark and copyright contracts that predate the technology.
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