Road to Rich: SK Planet's Rewards Program Meets NFTs

user-image
+1
Hyewon Jeong외 1명
Research Associate/
Xangle
Jun 15, 2023

Translated by Lyne Choi

Table of Contents

Introduction

1. UPTN's Mission: "Saving Private OK CASHBAG" 

2. Road to Rich: A Dynamic Membership Where Users Design Their Benefits

3. Gamification Elements and Rich Content as Differentiators

4. Expanding the Business Model to the Financial & Publishing Industry in the Long Run

5. Profitability and Expansion Speed Should Be Assessed with Long-Term Perspective

Closing Thoughts

 

 

 

 

Introduction

SK, the second largest South Korean conglomerate with over 200 subsidiaries, such as SK Hynix, SK Innovation, and SK Planet, recently unveiled its first blockchain project, UPTN. UPTN encompasses the UPTN Chain leveraging the Avalanche Subnet, the OK CASHBAG membership-based NFT project “Road to Rich, and the UPTN Station wallet, which will serve as a central component within the ecosystem. SK’s longstanding interest in blockchain and the broader Web3 ecosystem has paved the way for this significant milestone. This article aims to examine the underlying considerations driving the Road to Rich project and explore its potential for achieving success.

 

1. UPTN's Mission: "Saving Private OK CASHBAG"

OK CASHBAG, now transformed into a Web3 service, is SK Planet's integrated rewards program launched in 1999, currently celebrating its 25th anniversary. By offering a rewards program enabling users to earn and redeem points at various member stores, OK CASHBAG has amassed an impressive membership base of over 20 million. This symbiotic relationship benefits both OK CASHBAG's partnering companies, as they naturally enjoy increased marketing exposure through members' preference for using member stores to earn and redeem points, while SK Planet earns commissions from these partnerships. However, as larger franchises started implementing their own rewards programs, OK CASHBAG gradually lost market share and struggled to attract younger users, resulting in its current status as a somewhat outdated service.

The main objective of the UPTN project is to establish the Millennials and Generation Z (MZ generation) as long-term customers of OK CASHBAG, recognizing their significance as a major consumer segment. In order to achieve this, SK Planet plans to integrate NFTs into the OK CASHBAG membership and introduce a range of services aimed at attracting the MZ generation to the ecosystem, positioning it as an indispensable long-term service for their consumption lifestyle. This approach takes into account the digital-oriented nature of the MZ generation, who actively engages in economic activities within the digital space.

 

2. Road to Rich: A Dynamic Membership Where Users Design Their Benefits

2-1. Dynamic Membership for Customized Benefits

Road to Rich operates as a dynamic membership where users design their own benefits, distinguishing it from traditional NFTs offering fixed benefits. Road to Rich consists of two elements: Character NFTs and TEM NFTs. Holders can create a customized membership tailored to their needs by combining character NFTs with TEM NFTs, each offering unique benefits (refer to the image below).

TEM NFTs are designed to provide benefits associated with over 130 partner companies and more than 50,000 member stores in fashion, food, home appliances, and lifestyle sectors, which are part of the existing OK CASHBAG service. Similar to how consumers can freely utilize points earned from OK CASHBAG at their desired member stores, Road to Rich holders can also enjoy the benefits of their preferred member stores based on the combination of TEM NFTs they possess.