By
Steve Muchoki
October 15th, 2020
The collaboration with Tegger is a further boost for Props after the project was recently listed on several big non-US cryptocurrency exchanges, including OKEx and KuCoin.
Props and Tegger Network have confirmed they’re migrating the traditional loyalty points program they offer websites to use the Props Token.
Tegger will provide Props tokens as loyalty points that unlock benefits on all seven current, and all future, Tegger partner sites. Tegger is a loyalty provider that rewards users for consuming content, while Props offers an SEC-approved loyalty token platform that can be easily integrated by mainstream applications and sites. Tegger will be the fifth mainstream network to launch Props tokens. YouNow, Paltalk, Camfrog, and Listia all currently use Props.
Tegger is the first app from the Latin America region to integrate Props, expanding Props’ reach beyond its current 8 million token holders. Among the publishers using Tegger is Cultura Colectiva, the most popular digital content site among Latin American users.
Props’ management sees the opportunity of onboarding Tegger to expand Props into a new audience of online businesses. Adi Sideman, the co-founder of the Props Public Benefit Corporation, states:
“Tegger’s adoption of Props is unique in two main ways: First, Tegger’s model is to propagate Props amongst as many 3rd party sites as possible. This compounds Props growth efforts and, over time, the value of the utility Props’ unpacks. Second, Tegger’s no-code product will showcase Props ‘light integration’ into apps, which, requiring little integration efforts by businesses, may prove to further accelerate adoption across online businesses.”
In the existing Tegger model, users collect points that they can redeem in outlets participating in the Tegger marketplace, which includes Uber and Uber Eats, the Fork, and Cornershop. After the migration to Props, expected in the coming weeks, Props holders will be able to unlock premium redemption options, as well as user Props to redeem offers. Tegger will burn a portion of the Props that are redeemed on its platform.
Further Step towards the Ownership Economy?
Props’ expansion could mark a tipping point for the adoption of a new paradigm known as the “ownership economy.” The Props project is modeled on the idea that loyal users (creators, buyers, sellers and passionate consumers) will help contribute more to a network’s success if they have some “skin in the game” – a financial stake in the network they help grow.
Over the past two decades, we’ve seen companies such as Twitter and Facebook, along with Airbnb, Uber, and others, rise to dominance based on user-driven value creation. However, as they became bigger, these companies found themselves increasingly dependent on harvesting more from users, to the point where public perception is now turning. Further, any revenue sharing these companies do applies to a top 1% of users and does not provide the opportunity for financial upside to those power users who adopted the platform early and helped it grow.
In contrast, the Props model rewards participants with scarce tokens packing financial value. Effectively, users of the applications participating in the Props ecosystem become stakeholders, which in turn incentivizes them to contribute to both the Apps’ and the Props project’s success. Blockchain and cryptocurrencies lend themselves particularly well to this use case, as the ability to offer digital tokens creates an easy way to bestow value that can be distributed among any user who mathematically drives value.
Props also made sure that it wouldn’t fall foul of regulators in adopting its ownership economy approach. In 2019, the Props became the first consumer-facing token to be qualified by the SEC, so that Props may be used by non-accredited investors and are freely transferable. At the time, Adi Sideman told TechCrunch that Props was “the first offering of consumer-oriented utility tokens that the SEC deems compliant, outside of Bitcoin and Ether.” Even today, many projects prefer to skirt US regulation by avoiding offering products and services to US consumers, meaning that the Props approach puts it in a somewhat unique position to pioneer the ownership economy model and partner with risk-averse US businesses.
Positioned for Further Expansion
The collaboration with Tegger is a further boost for Props after the project was recently listed on several big non-US cryptocurrency exchanges, including OKEx and KuCoin. Props is an ERC 20 token, with its side chain running on Algorand, to provide better scalability – a move which already seems well justified in light of Props’ over 100,000 daily transactions and the new user base it will now attract through the Tegger partnership.
