Starbucks today launches its blockchain-based loyalty program and NFT community, Starbucks Odyssey, to its first batch of US beta testers. The new initiative, which includes coffee-themed NFTs that translate into real-world experiences, is an extension of Starbucks’ existing loyalty program, Starbucks Rewards, but leverages web3 technology like the polygonal blockchain and NFTs.

Announced to investors earlier this year, the coffee chain giant said it envisioned Starbucks Odyssey as a way for its most loyal customers to reap a broader and more diverse set of rewards beyond the benefits they can earn today. , like free drinks. Instead, Odyssey introduces a new platform where customers can participate in interactive activities called “Journeys” which, when completed, allow members to earn collectible Journey Stamps, which is Starbucks’ less geeky name for NFT.

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The trips are designed to promote the Starbucks brand and teach customers about coffee and the company’s history. They could include any number of activities, such as watching videos or answering quizzes, playing puzzles, or even going to the store to try new drinks the company wants to promote. The latter example is part of what makes Starbucks Odyssey more interesting than other corporate NFT initiatives, as it’s actually connected to the company’s existing loyalty program, business goals, and mobile payment technologies, rather than to function as a quick addition.

In the case of Journeys tied to in-store purchases, Odyssey members would scan their existing Starbucks Rewards card when purchasing the required beverage or menu item, and that activity would then be shared with Odyssey, earning members points.

With around 500 points, members will get Stamps, that is, a cafe-themed NFT hosted on the Polygon blockchain. These stamps also unlock special experiences. There will be three levels of perks and experiences that can be unlocked. On the low end, these could be online experiences, like a virtual class that teaches you how to make espresso martinis or gives you access to exclusive artist merchandise. As you earn more points and NFTs, you can start gaining access to real-world experiences, like special events hosted at Starbucks Reserve Roasteries or even a trip to Starbucks Hacienda Alsacia coffee farm in Costa Rica.

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Points are accumulated throughout the year, rather than being redeemed for prizes (as stars are). At the end of the year, the points are reset and you start over. But you’ll still keep your NFTs, which will then integrate with the Starbucks app, allowing customers to personalize their Starbucks card or perhaps print it on other merchandise.

As the Odyssey program launches into beta, the first Journey Stamps will include those designed with inspiration from Starbucks history, such as its first location at Pike Place Market in Seattle; others will feature classic designs and this year’s “Gift-Wrapped Magic” holiday tumbler art.

The company declined to confirm how many customers have signed up for the waiting list, but said demand had “far exceeded” its expectations. It will now begin to allow a portion of waitlisted users to try Odyssey and provide feedback on the initial experience, which it will use to further tailor the program. Users will receive an email if they are being invited to the beta, then they will have three days to join. If they don’t, they will go back to the waiting list for a future invitation.

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To enter Starbucks Odyssey after receiving an invite, members will need to have an existing Starbucks Rewards account, as this program is tied to the company’s larger loyalty initiative. (There are no separate accounts just for Odyssey.)

As members participate in Odyssey, they will earn NFTs, which have a point value based on their rarity. That means that, in addition to being tied to real-world experiences, NFTs will be able to be bought or sold on the Odyssey marketplace, which is set to launch in 2023. This part is powered by Nifty Gateway, with NFT ownership secured on-chain. blocks.

Starbucks is also simplifying the NFT buying process, as it will not require members to have a crypto wallet, own cryptocurrency, or understand the underlying web3 technologies. Beyond removing the word “NFT” from Odyssey lingo, members can purchase “Stamps” with a credit card, just like they would any other online purchase.

“It happens to be based on blockchain and web3 technologies, but the client, to be honest, may very well not even know that what they are doing is interacting with blockchain technology. It’s just the enabler,” Brady Brewer, CMO at Starbucks, told TechCrunch in an interview in September.

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For the coffee chain, the program allows the company to engage its most loyal customers and build community, but also provides a potential source of income. Starting next year, it will release limited-edition stamps, which members can purchase to support various causes. The artwork on these NFTs is being co-created by Starbucks and outside artists, while “a portion” of sales will support causes chosen by Starbucks employees and customers. (The company did not yet say how much of the remaining revenue it would keep.) These stamps will be issued between four and six times a year.

While many corporate forays into the NFT market are clever and poorly thought out, Starbucks has weighed more cautiously with its web3 approach. The company said that it had been researching blockchain technologies for a couple of years, but has only been involved with this particular project for about six months. Brewer previously said the company didn’t want to treat its investment as a “gimmick” side project, but instead wanted to use the technology to expand its existing loyalty program.

Starbucks also brought in Adam Brotman, the architect of its Mobile Order & Pay system and the Starbucks app, to help serve as a special advisor on Odyssey. Now a co-founder of Forum3, a web3 loyalty startup, Brotman’s team worked alongside the Seattle coffee chain’s own marketing, loyalty and technology teams, the company said.

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In a demo of Odyssey, the program seemed easy to use. You sign in, choose an avatar, and go through an onboarding experience that teaches you about travel and stamps, then get started. The company says there will always be at least two rides available at any given time.

The first invitations will go out to a small group of waitlist members today, December 8th. In January 2023, Starbucks will begin sending monthly invitations to a broader group of waitlist members.