ClutchLoyaltyProgram

Cluth Loyalty is Web3’s first cross-network loyalty program designed to unify and transform the fragmented rewards ecosystem by enabling users to earn and redeem rewards across multiple blockchains and platforms. Every transaction a user makes—whether it’s a payment, swap, or staking activity—is tracked and rewarded transparently on-chain, with rewards issued as tokenized assets such as loyalty points, gift cards, Web3 prepaid cards, or membership NFTs. Unlike traditional siloed loyalty programs where points are locked within a single ecosystem and often expire, Cluth Loyalty ensures rewards are interoperable, liquid, and redeemable across both Web2 and Web3 environments. Its built-in burn-and-earn mechanism sustains the rewards economy, while gamified tiered benefits (e.g., Silver, Gold, Platinum, Diamond) incentivize ongoing engagement. For businesses and dApps, Cluth Loyalty offers a plug-and-play infrastructure that seamlessly integrates reward mechanics without requiring custom development, helping increase retention, drive transactions, and enhance user experience. By bridging the flexibility of Web2-style rewards with the innovation of Web3-native incentives, Cluth Loyalty delivers the first truly universal loyalty layer for the decentralized internet.

Cluth Loyalty is built as a modular, API-driven loyalty infrastructure on top of the Hedera network, chosen for its low gas fees, high throughput, and native compatibility with advanced features like NFTs, HTS (Hedera Token Service), and integrations with wallets such as HashPack. The payment layer is designed to be flexible—while we initially integrated PayPal USD (PayUSD) as the default mode of payment, the system is compatible with any currency or token. Based on predefined rules, every qualifying transaction triggers a cashback or reward event, where the returned amount is programmatically converted into Hedera-native loyalty points. These points are issued using HTS tokens and governed by burn rules that ensure sustainability; the burn ratio is pegged to the USD value, meaning no matter the token or currency used, it is normalized and mapped to Hedera loyalty points.

On the backend, we exposed a public API layer, enabling any Web2 or Web3 business to easily integrate Cluth Loyalty into their environment. A merchant or dApp can plug into our API, set custom reward rules, and immediately offer professional-grade loyalty services without building their own infrastructure. The codebase is structured to support cross-network tracking, reward issuance, and redemption logic while maintaining security and transparency through smart contract verification and our own self-verification protocol. This protocol acts as a trust layer, ensuring every reward event is validated before issuance.

In terms of architecture, we leveraged Hedera for transactions and reward tokenization, HashPack wallet for seamless user interactions, and a service-oriented backend that orchestrates payment handling, rule execution, and points conversion. One of the more hacky but notable approaches we implemented was building currency-agnostic reward rules: instead of hardcoding token logic, all incoming currencies are abstracted, normalized to USD values, and then converted into Hedera points dynamically. This gives us a flexible foundation where loyalty can be extended to any payment method—crypto, stablecoins, or even fiat gateways—without rewriting core logic.