UPAS loyalty MVP Showcase

Community Showcase
1

Introduction

UPAS (User Personal Achievement Standard) is an open-source protocol built on the Internet Computer that aims to revolutionize digital loyalty and reputation systems. Following a strategic pivot, UPAS now focuses on establishing a universal decentralized standard for loyalty programs, tackling the fragmentation, complexity, and privacy issues inherent in traditional systems. Leveraging ICP’s cutting-edge blockchain capabilities, UPAS empowers users to own their loyalty data, enables businesses to issue verifiable credentials, and creates a decentralized ecosystem where reputation drives value.

Market Opportunity and Challenges

The loyalty program market is projected to exceed $200 billion by 2027 (Statista), yet it struggles with significant pain points:

  • User Frustration: 68 % of consumers find loyalty programs overly complex and lacking value (Bond Brand Loyalty).
  • Privacy Concerns: 45% of millennials are willing to switch brands over data privacy risks (McKinsey).
  • Siloed Systems: Points and rewards remain locked within individual platforms, offering no interoperability.
  • Stagnation: Despite efforts from startups like Pollen ($150M raised) and Blackbird.xyz ($24M from a16z), closed platforms fail to provide a universal solution.

UPAS bridges the gap between Web2 and Web3, delivering a decentralized, privacy-first protocol that redefines how loyalty and reputation are managed.

The UPAS Solution

UPAS offers a unified, open framework for loyalty programs:

  • Portable Rewards: Points and credentials are interoperable across programs, eliminating silos.
  • Privacy by Design: Users control their data, sharing only what they choose through vet keys.
  • Seamless Integration: Businesses can adopt UPAS with simple tools, avoiding regulatory complexity.
  • Data Marketplace: Users can opt-in to monetize anonymized purchase and preference data.
  • Reputation-Driven Value: Decentralized metrics enable targeted offers without compromising privacy

Built on ICP, UPAS harnesses unique features like canister signatures and reverse gas to create a scalable, secure, and user-centric solution.

Core Components

UPAS’s modular architecture includes:

  • Store Entity: Allows businesses to establish a digital presence, define custom credential schemas (e.g., “VIP after 10 visits”), manage employee access, and set dynamic reward conditions.
  • User Entity: A portable digital identity storing encrypted points, credentials, and reputation data, with selective disclosure for privacy.
  • Loyalty Canister: Handles point distribution and redemption using the ICRC-1 token standard, computes reputation scores, and tracks cross-program interactions.
  • Exchange Canister (Planned): Will facilitate point redemption and fiat settlements, ensuring compliance with financial regulations.

Real-World Example

Sarah, a regular coffee shop patron, earns points via her UPAS wallet. The café issues a credential, updating her loyalty status. Later, a grocery store recognizes her “Coffee Mania” tag and offers a discount on beans - all without accessing her personal data. This seamless, privacy-preserving experience showcases UPAS in action.

Screenshot_1.png
Screenshot_1.png1280×399 9.18 KB

Technical Achievements

Under the third grant, the UPAS team delivered key milestones:

  • ICRC-1 Loyalty Canister: Deployed for core point functionality and reward distribution.
  • Auto-Reward System: Enables stores to issue dynamic rewards based on user activity (e.g., receipts).
  • Credential Schemas for Stores: Implemented the ability for stores to create their own reward schemes and dynamically adjust them.
  • Tag System: Computes decentralized reputation tags (e.g., “Coffee Lover” for 10+ purchases in 30 days), supporting complex logic with AND/OR conditions.
  • Encrypted Receipt Indexing: Ensures privacy-preserved purchase history tracking.
  • Controller System: Verifies receipts and tracks achievements securely.
  • Dynamic Cashback: Boosts rewards based on reputation tags and credentials, tested with PJS and Pocket IC.
  • Robust Testing Environment: All tests were rewritten using PJS and Pocket IC, ensuring code stability and reliability.
  • Technical Specifications: Comprehensive documentation was created for frontend application integration.

We successfully completed all planned stages of the grant, establishing a solid foundation for the UPAS standard and its feature scaling.

Implementation: Tag and Condition System

A major innovation is the Tag System, which allows users to earn badges or achievements based on specific conditions and also reuse current tags and condition flows. This system supports complex logical rules for rewards.

  • Universal createTag Function : Enables the creation of tags with nested logical conditions using AND and OR operators.
  • Simple Conditions: Include receiptCount (number of receipts), totalSpent (total amount spent), credentialRequired (requires another credential), and tagRequired (requires another tag).
  • Store Schemes for Cashback: Stores can create schemes to increase cashback. For example, a user with the “coffee_lover” tag automatically receives higher cashback at participating coffee shops. The system selects the highest available cashback if multiple conditions are met.

Screenshot_1.png
Screenshot_1.png1280×720 6.96 KB

Example: Creating a “Beverage Enthusiast” Tag

This tag is awarded if a user ((frequently buys coffee OR frequently buys tea) AND has spent a significant amount).

// (Coffee OR Tea) AND Big Spender
let beverageCondition = Tag.andCondition([
    Tag.orCondition([
        Tag.receiptCount(["Coffee Shop", "Starbucks"], 10, ?(30 * 24 * 60 * 60 * 1_000_000_000)), // 10+ receipts in 30 days
        Tag.receiptCount(["Tea House", "Bubble Tea"], 8, ?(30 * 24 * 60 * 60 * 1_000_000_000))    // 8+ receipts in 30 days
    ]),
    Tag.totalSpent(["Coffee Shop", "Starbucks", "Tea House", "Bubble Tea"], 1000, ?(90 * 24 * 60 * 60 * 1_000_000_000)) // Spent 1000+ tokens in 90 days
]);

await loyaltyActor.createTag(
    "beverage_enthusiast",
    "Beverage Enthusiast",
    "Regular customer of coffee or tea shops with significant spending",
    beverageCondition,
    "{\\"icon\\": \\"☕️🫖\\", \\"level\\": \\"silver\\"}",
    200 // reward
);

Why ICP?

The Internet Computer Protocol powers UPAS with:

  • Canister Signatures: Automates credential issuance.
  • Reverse Gas: Removes transaction costs for users.
  • HTTP Outcalls: Integrates seamlessly with Web2 systems.
  • Account Abstraction : Simpl Bancifies onboarding with user-friendly identities.

No other blockchain offers this blend of features for loyalty solutions.

Future Vision

Our vision extends beyond the current implementation. We plan to:

  • Exchange Canister: Create a canister for seamless fiat integration, allowing businesses to operate within traditional financial frameworks.
  • Data Marketplace: Launch an optional marketplace where users can monetize their anonymized purchase and preference data.
  • AI Personalization: Use reputation tags to train AI agents that deliver hyper-personalized offers to users.
  • Delegated Keys: Implement a system for delegated keys to manage employee access in stores efficiently.

Join the Movement

UPAS invites developers, businesses, and innovators to build on its open-source protocol. Together, we can create a decentralized, privacy-first loyalty standard on ICP that transforms how reputation and rewards work. Explore the code, integrate with your systems, and help shape the future of loyalty.

2 Likes