Crypto Loyalty Tokens : How To Structure Reward Programs
If you’ve been considering a blockchainbased customer rewards program for your business, you’re not alone.
But there are a few things to consider that you might not have thought of – and getting the setup right will be key to adoption and success.
Steven Wright is a blockchain expert, and his report underscores the need for you to carefully examine applicable regulations before implementation.
Customer loyalty programs have been around for centuries, with early origins tracing back to the 1700s and 1800s when suppliers would issue tokens that could later be redeemed.
As the guide notes, there are parallels between these traditional loyalty programs and modern frequent flyer miles, which are sometimes treated as a pseudo-currency.
With the IRS increasing enforcement of cryptocurrency transactions, some businesses have proposed crypto loyalty programs as a way to avoid tax complications.
But just as accrued frequent flyer miles have been deemed taxable by the IRS in certain cases, crypto loyalty tokens would likely face the same treatment – so caution is advised!
Find out more at https://www.drstevenawright.com/