InfiniRewards: Token with Utility

Introduction

InfiniRewards introduces the concept of "Token with Utility" - an extension of the core platform that adds programmable logic to both fungible (ERC20) and non-fungible (ERC1155) tokens. This approach transforms tokens from simple digital assets into functional tools with specific capabilities, behaviors, and use cases embedded within them.

By defining logic at the token level, we create a more flexible, extensible rewards ecosystem that empowers merchants to craft unique experiences while maintaining the standardized protocol that makes InfiniRewards valuable.

Core Concept

Each token issued through InfiniRewards can have associated utility logic that defines:

1. Where it can be used - Specific merchants, locations, platforms, or contexts
2. How it can be used - Redemption methods, transfer restrictions, time limitations
3. What it represents - Claim rights, membership status, access privileges, financial instruments
4. Verification mechanisms - How token legitimacy and ownership are validated
5. Lifecycle management - Issuance, expiration, redemption, and retirement rules

This utility logic is defined during token creation and stored as on-chain metadata, ensuring transparency and immutability while allowing for complex behaviors.

Use Cases

1. Order Fulfillment Tokens

Concept: Merchants issue collectible tokens (ERC1155) that represent specific ordered items, allowing customers to claim their purchases securely.

Implementation:

• Token contains order metadata (product details, purchase date)
• Merchant-specific claiming logic (pickup locations, identification requirements)
• Automatic verification and redemption tracking
• Optional receipt generation upon successful redemption

Benefits:

• Streamlines order fulfillment without physical vouchers
• Creates transparent tracking of purchase-to-fulfillment process
• Reduces fraud through cryptographic verification
• Enables digital collectible proof-of-purchase

2. Points Rewards with Cashback Logic

Concept: Points tokens (ERC20) with embedded cashback rules based on merchant-defined criteria.

Implementation:

• Percentage-based cashback calculations based on purchase amount
• Tiered cashback rates for different membership levels
• Time-limited promotional cashback rates
• Merchant-specific redemption parameters
• Cross-merchant cashback agreements and conversions

Benefits:

• Automated, transparent cashback processing
• Reduced operational overhead for rewards management
• Enhanced customer loyalty through immediate rewards visibility
• Simplified cross-merchant reward compatibility

3. Membership Proof Systems

Concept: Tokens that serve as membership verification with integrated membership privilege logic.

Implementation:

• Tiered membership tokens with different access levels
• Time-based validity and automatic renewal options
• Embedded discount entitlements and special access rules
• Activity-based tier progression logic
• Membership verification protocols for merchant systems

Benefits:

• Single token represents both membership status and associated privileges
• Eliminates manual verification of membership status
• Enables seamless cross-merchant recognition of loyalty tiers
• Creates opportunities for membership-level-specific promotions

4. Supply Chain Tracking Tokens

Concept: Tokens that track products through supply chain stages, with embedded verification logic at each step.

Implementation:

• Product-linked tokens that evolve through supply chain stages
• Timestamp and geolocation verification at key checkpoints
• Quality assurance and condition verification inputs
• Custody transfer protocols and authentication
• Final delivery confirmation and warranty activation

Benefits:

• Immutable record of product journey from manufacturer to consumer
• Enhanced transparency for product authenticity verification
• Simplified warranty activation and service history tracking
• Consumer access to provenance information
• Reduced counterfeit risk through verifiable supply chain history

5. Lending and Real-World Assets (RWAs)

Concept: Tokens representing financial instruments with embedded lending logic and real-world asset backing.

Implementation:

• Asset-backed tokens with verifiable collateral links
• Automated interest calculation and distribution
• Loan term enforcement through smart contracts
• Collateralization ratio monitoring and maintenance
• Default handling and collateral liquidation protocols

Benefits:

• Democratized access to lending and borrowing
• Reduced intermediary costs through automated processes
• Transparent terms and conditions embedded in token logic
• Real-time monitoring of loan performance
• Simplified secondary market trading of tokenized debt

Developing with StarkNet

StarkNet provides a Layer 2 scaling solution that significantly enhances the capabilities of the InfiniRewards platform through several key advantages:

StarkNet Fundamentals

1. Cairo Programming Language: StarkNet uses Cairo, a Turing-complete programming language designed for creating provable programs. Cairo enables complex business logic with mathematical guarantees of correctness.

2. STARK Proofs: StarkNet utilizes STARK (Scalable Transparent ARgument of Knowledge) proofs to compress thousands of transactions into a single proof, reducing gas costs while maintaining security.

3. Account Abstraction by Default: Unlike Ethereum's EOA model, StarkNet implements account abstraction natively, enabling powerful programmable accounts with customized validation logic.

4. Low Transaction Costs: By batching multiple transactions into a single proof, StarkNet dramatically reduces the per-transaction cost, making micro-transactions economically viable.

5. Composability: StarkNet maintains the composability of the Ethereum mainnet while scaling transaction throughput, allowing seamless interaction between different contracts and protocols.

Leveraging Account Abstraction

InfiniRewards utilizes StarkNet's native account abstraction to create a superior user and merchant experience:

Current Implementation

In our current system, we maintain separate account types:

• InfiniRewardsUserAccount: Represents individual users/customers
• InfiniRewardsMerchantAccount: Represents merchant businesses

This separation allows for specialized functionality and permissions for each account type, but with StarkNet's account abstraction, we can enhance this model further.

Enhanced Account Capabilities

1. Multi-call Transactions:

   • Users can perform multiple actions in a single transaction (e.g., claim multiple rewards from different merchants)
   • Merchants can batch-process rewards distribution to thousands of users in one transaction

2. Session Keys:

   • Temporary limited permissions for specific functions
   • Users can generate time-limited keys for mobile apps without exposing their main keys
   • Merchants can delegate specific administrative functions to employees with restricted permissions

3. Gasless Transactions:

   • Implement sponsored transactions where merchants cover gas costs for user redemptions
   • Enable meta-transactions where a third party can submit a user's signed transaction

4. Custom Authorization Logic:

   • Multi-signature requirements for high-value transactions
   • Time-locked transactions for scheduled rewards distribution
   • Spending limits on merchant accounts to prevent unauthorized token issuance

5. Recovery Mechanisms:

   • Social recovery options for lost keys
   • Tiered security with different authorization requirements based on transaction value
   • Guardian-based account recovery systems

Application to Token Utility

Account abstraction directly enhances our Token with Utility model in several ways:

1. Programmable Redemption Logic:

   • Tokens can interact directly with user accounts to validate redemption conditions
   • Automatic execution of complex redemption scenarios without requiring multiple transactions

2. Conditional Token Transfers:

   • Tokens can enforce built-in transfer limitations based on user status, location, or time
   • Automatic validation of membership status before processing privileged transactions

3. Batch Operations:

   • Merchants can issue tokens to thousands of users in a single transaction
   • Users can redeem multiple tokens across different merchants in one operation

4. Payment Flexibility:

   • Support for payments in different tokens with automatic conversion
   • Split payments across multiple token types

5. Access Control Abstraction:

   • Delegate specific token management functions to third parties without compromising security
   • Enable temporary access for promotional events or limited-time offers

Implementation Strategy

To fully leverage StarkNet's capabilities, we'll implement:

1. Account Factories:

   • Deploying standardized but customizable account contracts for both users and merchants
   • Supporting seamless upgrades to account logic without affecting user assets

2. Modular Account Extensions:

   • Optional plugins for specialized functionality (e.g., advanced recovery, multi-sig)
   • Merchant-specific modules for custom loyalty logic

3. Account-Bound Utility Logic:

   • Token behavior that adapts based on the capabilities of the interacting accounts
   • Account-level permissions and restrictions for token usage