What are referral programs in blockchain, and how to implement them?01 Jul 2022
A referral program is not a new subject, but it can be implemented using smart contracts to help blockchain businesses expand.
These programs are used widely in different spheres to attract new users or customers. A business can cut promotional costs and benefit from redirecting a certain amount of profit to those who are willing to support it. Mainly, the potential program members (referrals) are influencers working for a project’s target audience and able to share it with the project.
For example, an online shop cooperates with a blogger, gives a discount to the brought customer, and gives a part of the profit from his purchase to the blogger. A clear win-win. So, what about blockchain?
Blockchain-related referral programs
Let’s divide the topic into blockchain-related and blockchain-based ones. This example will explain why.
It’s very common for centralized exchanges to provide such programs. Usually, CEXes share the commissions from trades made by the new users that were registered by a referral’s link. An exchange tops up the invitee’s account with a bonus and the inviter’s with the reward.
Here’s how the Binance Standard Referral Mode works for spot accounts.
It’s needed to clarify that this is not a promotion of Binance's referral program. We illustrate an example. Please, conduct your research.
As you can see, the scheme looks appropriate, and Binance works with blockchain, but no wallets or smart contracts are involved. Both the inviter and the invitee are on the same platform and get rewards in a token chosen by the centralized exchange, but it operates account balances without moving tokens across any blockchains. However, there’s a way to build a referral program for a project and operate its token.
Blockchain-based referral programs
As we mentioned before, a blockchain project can create such a program using its native token and smart contracts, and here’s how it can look if you do it with Rock’n’Block.
You can motivate some people to bring new token buyers and include them in your program. By clicking the “create member” button, the specific form pops up where you enter any information about the referral you need. Also, you enter his public wallet address where the rewards are going to be sent, and you’re ready to go. Every other part of the interface can show you useful data including trading amounts, exchanged tokens, etc. Thus, the process becomes almost automated, and you reach the goals you set for this activity.
Communities drive projects extremely, but this is the way to drive the community itself. Make interaction with your project useful and joyful, and then make moves to let more people know about it. A referral program covers both of these needs, so think of its implementation and come to us to get a decent blockchain development.
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