The Journey Of Vow — From Loyalty Tech To Loyalty-Based Economy
People might be uncertain of how to use cryptocurrency, but millions of us benefit from loyalty-based programs. Vow’s vcurrency promises to introduce value transferability and create a parallel loyalty-based ecosystem, thereby revolutionizing the way people transact and do business.
Cryptocurrency is gaining momentum worldwide, but volatility and speculations around these new-age currencies may discourage many people from embracing the concept wholeheartedly. Under such assumption, the VOW exchange token comes as a robust contender focused on taking volatility out of the equation, building trust, and developing a community of cryptocurrency enthusiasts and investors. vcurrency is leading the transition from loyalty-tech to a loyalty-based ecosystem that can help revolutionize the rewards industry and community for whom the “The Future of money is promising”.
The Journey: How Vow Was Envisioned And The Beginning
Customer loyalty and trust are paramount for any business or organization to be successful. Vow, tokenizes merchant promises such as vouchers, loyalty points, cashback and gift cards, thereby creating the world’s first decentralized, fully stable currency called vcurrency. Generally, merchants offer three types of benefits to their customers.
- Discounts: The first one is the simple discount where the customer purchases a product and gets a fixed discount on its price. As a result, the customer pays a lesser amount, and the transaction is over.
- Cashback: This concept revolves around a business entity accepting a product’s total value from the customer and later on refunding a fixed percentage, known as cashback, to complete the transaction.
- Loyalty Points: The business entity awards “Loyalty points” based on products or a fixed proportion of the sale to the customer that can be exchanged for other goods and services from the same business at any time.
Vow, was started and envisioned to work similarly to how these reward mechanics work, but with the following significant differences.
- Discounts: Such offers from merchants result in an instant loss of cashflow. The business only retains 90% of the sale if they offer a 10% discount. With Vow they can actually keep the full amount in their till.
- Cashback: Similarly to discounts, the merchant receives an invoice for the cashback amount after the sale. If the offer was 10% cashback, then they will end up with only 90% of the cash in their till at the end of the day. With Vow the value retained is 100%.
- Loyalty points have a significant disadvantage because they are not transferable and mostly come with an expiry date, after which they are not redeemable. vcurrency is different because it retains the same value as its corresponding fiat currency and does not come with an expiry date.
Making The Difference: Vow Vowed To Eliminate Price Volatility
Vow vows to eliminate this anomaly by introducing the 1:1 acceptance concept. The following provides an example of how this works in practice.
Suppose a business offers the benefit of 10% to the customer in the form of Vow tokens. Thus, if the purchase value is $100, the customer gets vcurrency, in the amount of $10 as v$10. The 1:1 concept ensures that the value of v$10 remains $10 all the time, even in the future.
By giving vcurrency to the customer, the business promises to accept them back at their face value on any redemption date in the future. vcurrencies are redeemed by discounting the price of products or services equivalent to their value in fiat currency. So, if the customer wants to purchase goods worth $10, he can open his wallet and spend v$10 at the PoS. The best aspect of Vow is that the vcurrency does not expire upon redemption and is available to the merchant to pass on to another customer, spend within the ecosystem or save for later.
Vow makes loyalty rewards truly transferable, thereby creating a parallel currency system.
The Concept Of vCurrencies: How Vow Set Out To Revolutionize The Way Transactions Are Done
Like all exchange tokens, Vow has value only when there is acceptance from businesses and people alike. Today, the most accepted exchange product is fiat currency. The value of $1 will always remain $1 because it has the backing of the Federal Reserve. Similar is the case with other fiat currencies globally. However, Vow has a different kind of backing, a growing decentralized ecosystem of businesses and consumers who promise (Vow) to accept them 1:1 with their local fiat currency.
The concept behind Vow is that the merchant promises to discount the value of their goods or services to the value of vcurrencies offered by the customer.
- The customers can sell their vcurrencies for the local fiat, but at a discounted price i.e $0.90 for v$1, therefore there is a disincentive to move out of the ecosystem.
- Conversely, other participants can buy vcurrencies from sellers at a discount, i.e $0.90 for v$1, and are therefore incentivized to enter the ecosystem.
- The exchange price between vcurrencies and their local fiat equivalent is decided by the market, depending on the prevailing supply and demand forces at that time.
- With more people adopting vcurrencies and joining the ecosystem, local liquidity increases perpetually.
This inter-market transferability makes vcurrency similar to fiat currencies in many ways. It eliminates volatility in value and is thus set to revolutionize the way transactions are done. With Vow, you have decentralized issuance of currency where there is no need for a controlling authority to establish the integrity of the currency supply.
Vow Token Sale — An Opportunity You Must Not Miss Out On
Vow, built on the Ethereum Blockchain, is a free-floating utility token. It is used to mint vcurrencies. Contrary to existing stable coins, vcurrency does not have the backing of physical assets. Businesses and institutions individually and collectively provide support by guaranteeing to accept them in the redemption from the customers against goods and services.
One must not miss this opportunity because vcurrency is the first decentralized token model capable of delivering the transferability of value in a trustless system. Thus, it adds liquidity to local economies without relying on external parties. It also provides opportunities for the same actors to cooperate and build an organically expanding parallel currency supply.
Vow has already attracted global attention, and the support of growing merchant validators (MVD) committed to engage as primary adopters of the Vow ecosystem. Vow has acceptors in eleven countries, including the UK, the USA, Ireland, Denmark, Australia, New Zealand, India, South Africa, the UAE, Malta, and Zimbabwe.
These prospective MVDs can target over 500 million people because they have steadily built up a massive loyalty-based customer setup. Thus, the future is not too far, where Vow’s journey from loyalty-tech to a loyalty-based ecosystem will witness the fruits of success. After all, the future of money is promising.
- Vow Currency. The Future Of Money Is Promising.
- Vow Currency. (2021, April). The Future Of Money Is Promising (WhitePaper).
- Elliptic. (2021, January 12). Vow Partners With Elliptic. Press Release.