Japan’s Ponta Loyalty Program on Avalanche L1 is a Perfect Web3 Use Case
It seems like I'm posting a bullish news story about something Avalanche is doing everyday -- and here we are again.
@RoiSarak, Head of Japan at @AvaLabs, posted yesterday about the success MUGEN Chain, an L1 on Avalanche, is seeing with its @Ponta loyalty program in Japan and his comments piqued my interest as a former "we should use blockchain for everything related to marketing" evangelist.
In short, Loyalty Marketing, Inc. (LM) launched MUGEN Chain in December 2024 to support @Ponta and its 100M+ members -- and thanks in no small part to Avalanche, it has been zooming.
I intended to write a short news post, but after digging into the L1 and the ecosystem that LM has built, there is a lot more going on here than one would initially assume. From NFTs that reward sustainable efforts to user-friendly UX to invisible web3 integration, there's a lot worth learning from (and admiring).
Let's get into it.
Without Knowing It, People Are Using Avalanche
Right out of the gates, MUGEN Chain processed over 1 million transactions within its first month alone and interest in the L1 has only been growing since. Big numbers like this are always bullish for Avalanche, but those numbers also reflect the ease-of-use that comes with leveraging scalable L1s and will certainly set a precedent for other companies to model and replicate.
Ponta, pictured above, is a multi-partner points system that allows users to earn and redeem points at a wide network of affiliated businesses, including the likes of Lawson (@akiko_lawson) convenience stores and GEO video rental (@GEO_official). Although I'm just a tourist, I've observed the reward system's popularity first-hand -- and I may just have to use it on my next trip (I love Lawson's chicken).
The broader crypto industry has been talking about and hoping for frictionless web3 integration in our everyday lives for years and MUGEN Chain has done it by bridging Ponta’s traditional loyalty framework with web3 technology.
All members need to do is log into their MUGEN Portal using their existing Ponta IDs and that's it -- users are then off to the races. This one-step UX means that many users may not even realize that they’re interacting with a blockchain, which is half the point, really.
Leveraging Avalanche’s infrastructure, the platform then supports fast and secure transactions (as expected), but this also means LM can go one step further and enable features like the Green Ponta Action and Sustainable Community Support Records, which are both initiatives core to LM’s focus on a sustainable consumer society.
The sustainable consumer society initiative lies at the heart of MUGEN Chain's Green Ponta Action (pictured above), an app that tracks and visualizes members' contributions to sustainability activities. Users can earn additional Ponta points and NFTs as rewards for eco-friendly initiatives or donations to community causes.
The Sustainable Community Support Records feature provides transparent tracking of these contributions, enhancing trust -- a benefit of blockchain tech that complements Ponta’s existing point system.
Tying It All Together
The name "MUGEN" means "infinite" or "limitless" in Japanese, which reflects LM’s goal of creating a scalable infrastructure, building on Ponta’s evolution toward advanced technology like blockchain for transaction tracking and reconciliation.
This speaks to me.
MUGEN Chain’s success with Ponta showcases how web3 can enhance everyday loyalty programs. Its impressive transaction volume, clean Ponta ID integration, and focus on sustainable incentives like Green Ponta Action serve as a perfect marriage of Avalanche’s scalability and LM’s vision and as a clear winning a model for retailers.