Thanks for your interest in Incent. Click below to read our white paper
Using Blockchain to Boost Commerce - a white paper by Rob Wilson.
Incent is a blockchain-based loyalty-rewards product created by crypto business hub BitScan, which will leverage a crypto token, created and hosted on the Waves platform.
Traditional loyalty schemes are suboptimal. They typically offer little tangible value to customers, are expensive to administer for merchants, while offering variable and modest repeat custom. By issuing Incent on the blockchain, reward tokens will be fully transferable and able to function as a form of configurable, smart money that carries no forward liability for businesses. The value of Incent will rise due to the fact that market demand from merchants will always outstrip supply, benefiting customers and anyone else holding Incent as a store of value.
BitScan is already in discussions with a number of potential merchant clients, putting the programme in a strong position to hit the ground running, post product launch. We are now preparing to put the Token into circulation via ICO, the funding received from which will be used to organise structurally, complete development of the merchant and consumer facing applications for market, and fund associated business development activity.
BitScan has been active in the bitcoin and crypto space since 2013 and has built the world’s largest bitcoin business directory and merchant hub. We have created some powerful tools to help merchants get set up with a crypto-accepting website, quickly and easily – including instant search, which you can try out on our mall: http://mall.bitscan.com/index.php or in our B2B site: http://bitscandatatechnology.com.
However, we believe that blockchain technology has the power to drive businesses forward in new and exciting ways beyond streamlining the payments system and opening new markets. As the operator of one of the first, largest and best-trusted bitcoin directories in the world, we’ve spent a lot of time talking to and working with merchants and businesses. A clear message has been that merchants need better loyalty solutions. Incent is our opportunity to deliver one.
The traditional loyalty sector is inefficient at best, broken and ineffective at worst. Although there are thousands of active loyalty schemes, only a handful deliver meaningful repeat custom to merchants or offer customers rewards worth having. In many cases, the costs outweigh the benefits.
Critical for an effective reward scheme is the ‘loyalty margin’. A merchant must offer rewards worth enough to convince customers to return, but not so much that the cost of doing so outweighs the repeat custom generated. Customers must not only redeem their tokens, but purchase other goods and services to offset the cost to the merchant. Thus paradoxically, traditional loyalty schemes are predicated on the knowledge that most customers will not redeem the vast majority of their points.
For merchants, there is a forward liability attached to issuing every point: at some stage in time, they may be required to honour that commitment. Reward schemes therefore impose risks and costs on the merchant as well as potential rewards. Whereas, for consumers, the value proposition is rarely compelling enough to prompt repeat purchases on a scale that is worthwhile to the merchant too.
Loyalty points are, by design, non-transferable. One of the reasons for this is that transferability would raise the value of loyalty points for customers, meaning that businesses would have to redeem more of them. This limitation is one of the defining characteristics of existing loyalty schemes.
BitScan proposes a paradigm shift in the loyalty sector. By creating a new form of loyalty token, hosted on the blockchain, rewards will be fully transferable with no limitations. They can be traded on secondary markets, and redeemed by businesses within the participating network. BitScan will buy and issue these tokens directly to consumers as directed by participating businesses via a technical integration at the point-of-sale. Merchants will configure what percentage of each transaction will be returned to the customer as Incent – effectively a form of cashback. This money will be sent to BitScan, who will buy the equivalent amount of Incent at the prevailing market rate and send it to the customer’s digital wallet. Similarly, merchants can set the discount for purchases in Incent, encouraging holders of Incent to spend their tokens at their stores. Once again, BitScan will act as primary broker, processing a consumer’s order by selling the Incent component of it back into the market before settling with the merchant in local tender. This process immediately results in further demand for Incent, to the value set by the merchant. The existence of secondary markets ensures a fair and independent price for Incent on an enduring basis.
The strengths of this approach are self-evident. Customers receive a reward that has real monetary value, rather than points that can only be redeemed within the walled garden of the issuing business, and only then for a finite period of time. Merchants will compete to offer the best value for redemption, benefiting end-users, but will also avoid the administration costs and forward liability involved in traditional loyalty programmes, since the Token has exchangeable value beyond their business. They can set issuance and redemption criteria optimised for their own businesses and they also benefit of an enduring digital connection to their customers via their digital wallet, through which they can push-market the goods and services, offers and discounts. Enduring demand from participating merchants, triggered every time they transact, will drive the price of Incent, which will benefit ICO investors, customers and merchants – since a higher future value of Incent will mean there is more money to spend.
At the heart of Incent is a cryptographic token. The best means of getting this token into circulation is by crowdsale, which will set an initial market value and reward token buyers for their backing of the project with a tangible asset that can be traded following issuance.
We hope that the crypto community and particularly those who invested in Waves will recognise that Incent connects the Waves infrastructure to a mainstream marketplace that is as broad and deep as commerce itself. They will understand that the value of Incent should appreciate because it is merchant backed and that a deep and liquid market for Incent can, similarly, drive the velocity and value of Waves. These unique qualities combine to create a compelling value proposition.
That the market for Incent, post product launch, will be mainstream merchant demand fed is a significant departure from most ICOs we have seen to date. Many crypto ICOs forecast a ROI based on nonexistent technology or customers. Incent has both working software and business partners, enabling the programme to hit the ground running. This is our USP.
Additionally, Incent exists at the application layer as an essential commercialising technology for our infrastructure partner. If Incent is successful the value of the blockchain on which it is built will benefit significantly. Another way of putting this is that if you hold Waves it is very much in your interest that Incent is funded!
We estimate that completion of the software integrations and launch can be achieved for $1million, $3million would provide us with the means to accelerate marketing and business development activity. Our funding target is $5million, which would enable us to fully establish and get Incent to market in very good order.
Funds raised at ICO will be used in 4 key areas:
The ICO will run from 0001 GMT (Z) on the 1st October for a period of 2 months or until our funding target of USD 5 million is raised, whichever occurs first. Investors will be able to buy Incent tokens in exchange for Bitcoin. Initially, each Incent token will be priced at 10,000 Incent per BTC (1 Incent / 0.0001 BTC). As the ICO matures the token price will be stepped up as described below until the ICO either hits our funding target or expires by time. At the end of the ICO, Incent tokens sold during the ICO will be issued to investors and the token will float on Waves’ exchange.
Absolutely. Here’s the plan:
Larger investors, who feel they can offer value to this project beyond the purchase of Incent tokens, should get in contact. As a startup we are naturally interested in cultivating contacts that can help our business to succeed and as such, we are prepared to offer additional pre-ICO discounts, at our discretion.
The total circulation of Incent will be decided by the amount of Incent sold during the ICO. BitScan will hold a reserve of additonal Incent in escrow, equal to half the amount sold at ICO, together with a proportion of the bitcoin raised at ICO. The ICO circulation cap will not be lifted until the loyalty product goes live with merchant clients. Thereafter, new tokens will only be mined into the market to ensure commercial liquidity, and bought back as soon as practicable to maintain the circulation cap.
From the moment the first merchant goes live with Incent, liquidity and maintenance of an orderly market is imperative if the Project is to function commercially. The Reserve will allow BitScan to support market integrity. We consider the presence of a marketmaker essential for Incent to have enduring value to consumers, merchants and anyone holding it as a store of value.
The reserve will be stored off-line with only the amount required to fulfill the marketmaking function kept on exchange. The commercial transaction cycle will, in the first instance, deplete he reserve by the amount of new tokens issued in response to merchant demand. During the next phase of the cycle, an amount of Incent equal to that issued will be bought back out of circulation from the BTC reserve, bringing circulation back into balance. Finally the depleted BTC reserve will be replenished following receipt of merchant remittances to the bank.
Any profit deriving from market making operations, over and above BitScan’s brokerage commission, will be shared 50/50 with the Incent holding community, in the form of a dividend.
While this makes sense for some tokens, like Waves for example, but capping total supply of Incent at the amount sold at ICO would leave no residual capital with which to perform the primary broker or market making functions which we consider to be prerequisites for a successful commercial loyalty solution.
In addition to the last point, mining new Incent on a preset schedule would take no account of variances in demand for the Token following product launch. A preset schedule which makes no allowances for market reality risks placing supply pressure on price, with the resultant price volatility undermining our objective of a stable and liquid digital asset whose value appreciates steadily.
It will be BitScan’s responsibility to ensure that this cannot happen. Unissued tokens will be held offline escrow, alongside the bitcoin raised at ICO, with only an operating balance on-exchange as required to perform the market making function.
Holding a reserve comprising half of all Incent in circulation and half of all bitcoin raised at ICO, underlines and demonstrates our commitment to support the market for Incent on an enduring basis, to the benefit of all stakeholders and the commercial success of the project that this ICO is funding.
Rob's formative career was in the military, where he enjoyed 2 front-line commands and lectured strategy at USNWC. A self-taught financial trader he left service to manage private money. Bitcoin caught his attention in 2013 and he founded BitScan with the aim of building adoption through commerce. BitScan has grown to become the largest directory of bitcoin enabled enterprises on the planet.
Cyrille (@karlkarlsson) has been a long-time Nxt community member and supported community projects for several months. He found his passion for digital currencies during the time he worked for a major Swiss financial institution. Currently, he is an undergraduate in the Bachelor's degree program in International Management. Within the team his responsibilities lay in community management and marketing.
Scott served a varied 21-year career in the Royal Navy, seeing active service in the Gulf and in other hot spots including Sierra Leone and Cambodia before commanding 3 times. He left to pursue a commercial career with Waitrose, quickly rising to run their e-commerce operations. Incent is the next step in a second career focussed on consumer experience
Freya is a marketing professional that holds a masters in Media and Communications, Freya has extensive experience within the Bitcoin and Blockchain industry. She has previously worked for the Bitcoin wallet company Coinapult and the German bitcoin service Cubits. In her spare time she created the Bitcoin UK Podcast to give a voice to the industry developing in the UK and has also been active in co-organising the Cambridge Bitcoin Meetup and the Cambridge University Cryptocurrency Society.
Guy Brandon is a UK-based writer and communicator who has been active in the cryptocurrency world since early 2014. Since then he has worked on a wide range of blockchain-based projects. He has been BitScan's BitBuzz editor since March 2015 and is also the Communications Director for the Waves platform.
Richard began his career at Arthur Andersen Business Consulting during the dotcom boom, worked at Deloitte Consulting and latterly Accenture specialising in Online, Sales, Marketing and Customer Experience Strategy and Operations.
Having spent time serving in the Royal Australian Navy he is now excited about the prospect of leading Incent’s disruption of the Australian marketplace and uncovering, leveraging and exploiting the huge opportunities it introduces.
Peter began his career on the wave of the first dotcom boom in London, and has been developing app.s and websites ever since. A relocation to Australia followed, leading to a meetup with Rob, and work on the development of the Bitscan platform.
An enthusiastic supporter of crypto-currency he is responsible for the technical direction and implementation of the Incent application, and its integration with the Waves blockchain.
Incent is both a cryptographic token and a loyalty eco-system, which allows merchant clients to incentivise custom by rewarding their customers, at the point of transaction, which has the unique property of being convertible on the Waves blockchain.
Yes! Both our market research and business development activity prove that merchants are crying out for a better loyalty solution.
BitScan buys Incent at the Waves market rate whenever a merchant transacts and issues it to customers as instructed by the merchant.
Similar, the only difference being that Incent operates on a ‘proof of stake’ model with circulation driven by merchant transaction volume, as opposed to a ‘proof of work’ algorithm.
Incent is intended to be used as a next generation loyalty-reward currency, which allows merchants to reward consumers with a far more compelling value proposition for far less cost.
Because Incent is a tradeable on Waves’ exchange, market forces decide how much Incent is worth. However, with merchant dollars continually driving demand, the conditions are stable, liquid and appreciating asset are baked-in from day one.
Incent, and its merchant and consumer facing applications are operated and managed by BitScan through integration with the Waves platform.
Absolutely. Incent, the digital token, will be launched via ICO in October / November 2016.
Following the ICO we’ll be on the hunt for developers to help us build-out our technical infrastructure and merchant plug-ins.
Following launch we’ll be rewarding those keen to help us build-out the Incent ecosystem.
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