Mark another notch in Polygon’s belt. Following its successful collaboration with Reddit earlier this year, the Ethereum sidechain recently partnered with Starbucks to issue NFTs to the general public. Which, if successful, could drive mass adoption. The ubiquitous coffee shops’ massively successful gift card and loyalty programs, mixed with the 25 million people addicted to using the Starbucks mobile app, translate into more than $1 billion in stored value. And now, you can add NFTs with real-life utility and rewards to the pot.

The Polygon PoS sidechain inherits Ethereum’s security, but it’s faster and much cheaper to use.  The NFT marketplace Nifty Gateway will provide the technology behind the Starbucks Odyssey program. According to the press release, the platform will be a “Web3-powered experience” that “will allow Starbucks Rewards loyalty program members and Starbucks partners (employees) in the United States to earn and purchase digital collectible stamps in the form of non-fungible tokens (NFTs).” 

The real-life utility, in this case, will be access to exclusive events, merchandise, and Starbucks collaborations with artists. 

Starbucks Addresses ESG Concerns By Working With Polygon

When it comes to launching NFTs, one of the main obstacles for brands is the perception that cryptocurrencies are burning the ocean. Environmental, Social and Governance (ESG) concerns regarding cryptocurrencies are at an all-time high, and NFTs in particular get called out for their negative contribution. To nip those concerns in the bud, Starbucks decided to work with Polygon’s “carbon-neutral network.”

The press release quotes Ryan Butz, Starbucks VP of marketing as saying:

“Building Starbucks Odyssey using technology that aligns with our sustainability aspirations and commitments is a top priority. We took a very thoughtful and thorough approach when evaluating which blockchain to utilize and Polygon’s fast, low-cost, and carbon-neutral network is the perfect foundation for our first digital community.” 

The Polygon network is carbon-neutral now. It “has committed to becoming carbon negative by the end of the year and has already offset its network’s cumulative CO2 debt.” The company claims that after the merge, with Ethereum’s transition to proof-of-stake, the Polygon network’s carbon footprint will be 99.91% smaller. 

The press release also quotes Polygon’s Co-Founder Sandeep Nailwal with a much less exciting attribution “as a leading infrastructure provider enabling people and technology to collaborate and exchange value globally and freely, Polygon provides the ideal launchpad for Starbucks’ entry into Web3.”

How Does Starbucks Odyssey Work?

The NFT-based system revamps the company’s renowned loyalty program. For a better understanding of the inner workings of the platform, it’s time to change press releases and quote the Starbucks one.  It all starts with a promising idea, better explained by Starbucks VP and CMO Brady Brewer, “For the first time we are connecting our Starbucks Rewards loyalty program members not just to Starbucks, but to each other.”

That means that people will own Starbucks NFTs and there will be a marketplace for them to sell them in, hopefully at a profit. Some people will earn NFTs as rewards by participating in “journeys,” which are “a series of activities, such as playing interactive games or taking on fun challenges to deepen their knowledge of coffee and Starbucks.” That might sound like a non-starter, but the company’s mini-games are already very popular.

Other people will opt to outright buy the NFTs, which they call “limited-edition stamps” and are rarer than the rewards ones. Starbucks will try to hide the complexities of cryptocurrencies and make the onboarding experience simple. “Limited-edition stamps will be available for all members to purchase directly with a credit card.  No crypto wallet or cryptocurrency will be required.”

On the other hand, these “stamps” will include crypto’s desired characteristics and perceived exclusivity. Each one will include “a point value based on its rarity.” The Starbucks press release ends with an interesting promise, “as stamps are collected, members’ points will increase, unlocking access to unique benefits and experiences that have never been offered before.”

Buy/no buy recommendation

This one’s hard, as there’s not enough information about the product available just yet. We don’t know how the Starbucks’ NFTs will look like, or even who’s doing the art. The real-world utility is apparent and commended, but there’s the distinct possibility that the company will announce new ones as soon as their marketing department comes up with them. Will they strike a chord with the public, though? That’s the real question.

If you think Starbucks’ tried and tested brand will carry these NFTs to new heights, consider investing.

If you’re not sure about Starbucks’ potential as a technology company, and think the coffee makers should stay in their lane, you may want to steer clear of their NFTs. You can still earn some by buying Caramel Frappuccinos and participating in the loyalty program.

Before making a decision, though, read about how Reddit managed to bring back to life a failed corporate NFT project. The company’s relentless attitude and language prowess turned their much-mocked profile picture NFTs into a roaring success. 

Building on Corporate NFT Success: Reddit Collectible Avatars

In what might be the corporate NFT story of the year, Reddit managed to successfully launch an NFT collection in the middle of a bear market. Granted, Reddit has an enormous user base, but that’s precisely the thing. That user base is extremely anti-NFTs. In fact, there are few websites that have a more extreme view of the misunderstood digital assets. 

Reddit managed to sell the product to that unfavorable audience by avoiding all crypto jargon and calling them “blockchain-backed collectible avatars.” For Redditors and users, wallets are called “vaults.” At first, all the pieces were reasonably priced. Between $10 and $100 a pop. Plus, to get the ball rolling, Reddit airdropped and gave away hundreds of Collectible Avatars. 

With that sleight of hand, the company managed to onboard millions of people into Web3. So far, the Reddit community has opened three million “vaults.” There are more vaults than OpenSea wallets, and that’s the biggest NFT marketplace that’s been operational since 2017. And speaking about OpenSea, the secondary market for Reddit’s Collectible Avatars moved there and the pieces are selling at a hefty markup. In some cases, 50X the original price. 

Reddit’s Collectible Avatars are also Polygon NFTs.