Why Selective Disclosure Is Loyalty's Next Frontier

Current programs operate in walled gardens. Users can't port their loyalty graph, and brands can't verify cross-platform activity without invasive data sharing.

• Fragmented Identity: A user's Starbucks status is useless at Nike.
• Privacy Tax: To prove loyalty, you must surrender your entire purchase history.
• Missed Insights: Brands see only a sliver of a user's true brand affinity.

ZK proofs let users cryptographically prove attributes (e.g., 'I am a top 10% spender') without revealing underlying transactions. This creates a portable loyalty passport.

• Selective Disclosure: Prove you're a 'Gold Member' without showing every receipt.
• Composable Programs: Your airline status can automatically unlock hotel perks via a shared proof.
• Sybil Resistance: On-chain verification prevents fake account farming that plagues Web2 programs.

Tokenized points and on-chain programs enable real-time, programmable rewards. Think UniswapX-style intents for loyalty, where solvers compete to offer the best reward swap.

• Capital Efficiency: Brands pay for proven engagement, not vague marketing spends.
• Secondary Markets: Liquid points markets (like LayerZero's OFT standard) create price discovery and user liquidity.
• Cross-Brand Auctions: Users can auction their provable loyalty to competing brands in a privacy-preserving way.

Bridging off-chain purchase data to on-chain proofs requires new infrastructure. Projects like Automata Network and HyperOracle are building ZK oracles for this exact use case.

• Data Attestation: Cryptographically sign real-world transaction data at source.
• Proof Generation: Efficiently generate ZK proofs of complex loyalty logic off-chain.
• Interoperability: Standards emerge for proof formats, enabling a universal loyalty layer akin to Across or LayerZero for intents.

Turns on-chain history into reusable, privacy-preserving badges. Users aggregate credentials (e.g., ENS holder, Gitcoin donor) into a single ZK-proof, revealing only what's needed.

• Key Benefit: Enables sybil-resistant airdrops and gated experiences without exposing wallet history.
• Key Benefit: ~2M+ ZK Badges minted, creating a portable, composable identity layer.

Solves the unique-human problem via biometric Orb verification, generating a ZK-proof of personhood. The protocol's core innovation is the ability to prove 'liveness' and uniqueness without linking to real-world identity.

• Key Benefit: Provides a global, sybil-resistant primitive for fair distribution (e.g., UBI, governance).
• Key Benefit: ~5M+ verified humans, creating a foundational credential for mass adoption.

Enterprise-grade framework for issuing and verifying claims on-chain. Uses Iden3 protocol and zero-knowledge circuits to enable selective disclosure for KYC, credit scores, and professional credentials.

• Key Benefit: Institutions can issue reusable credentials, users control disclosure (e.g., prove age >18, not exact DOB).
• Key Benefit: Native integration with Polygon's $1B+ DeFi ecosystem, bridging TradFi and DeFi compliance.

Today's loyalty is extractive. Protocols hoard user data to calculate points, creating locked-in silos. Users have no portability, and every new app demands full transaction history, a massive privacy leak.

• Consequence: Loyalty becomes a stickiness trap, not a user-centric reward.
• Consequence: >90% of users reflexively reject connecting wallets due to privacy concerns, stunting growth.

Selective disclosure flips the model. Users cryptographically prove traits (e.g., 'Top 10% trader', 'Active for 2+ years') without revealing underlying data. Loyalty becomes a portable asset.

• Mechanism: Zero-Knowledge Proofs (ZKPs) and Verifiable Credentials (VCs) form the tech stack.
• Outcome: Protocols compete on utility, not data captivity. User acquisition cost plummets as trust becomes transferable.

The base-layer primitive for making attestations on-chain or off-chain. It doesn't enforce privacy itself but provides the universal schema registry and tracking that ZK-proofs like Sismo's can build upon.

• Key Benefit: Creates a standardized data layer for trust, making attestations composable across the stack.
• Key Benefit: Permissionless and schema-less, enabling infinite use cases from reviews to proof-of-attendance.

Current programs trap user data in centralized databases, creating a poor experience and limiting composability.\n- No Interoperability: Points from Protocol A are useless in Protocol B.\n- Zero Portability: Users lose their history and status when switching chains or dApps.\n- Stale Value: Static NFTs or points cannot reflect real-time engagement or reputation.

Use verifiable credentials (like Ethereum Attestation Service or Verax) to create portable, granular proof of user actions.\n- Selective Disclosure: Users prove specific traits (e.g., "Top 10% trader") without revealing full history.\n- Chain-Agnostic: Attestations can be verified on any EVM chain, breaking silos.\n- Composable Building Blocks: Protocols like Galxe or Noox can build dynamic loyalty atop this primitive.

Leverage ZK proofs (via zkSNARKs or zkSTARKs) to enable trustless, private verification of complex user behavior.\n- Privacy-Preserving: Prove you qualify for a tier without exposing every transaction.\n- On-Chain Verifiable: Logic is cryptographically enforced, not run by an oracle.\n- Gas-Efficient: Proof verification is cheap, enabling micro-rewards and frequent updates.

Shift from fixed rewards to algorithmic loyalty based on real-time contribution and reputation scores.\n- Sybil-Resistant Airdrops: Use on-chain history proofs to filter bots, as pioneered by EigenLayer and Optimism.\n- Variable APY: Lending protocols like Aave could offer better rates to loyal, long-term LPs.\n- Cross-Protocol Benefits: A high reputation in Uniswap governance could unlock perks in a Compound market.

New infra layer will emerge to index, score, and serve verifiable user reputation data. Think The Graph for social/behavioral data.\n- Reputation Oracles: Services that compute scores from raw attestations (e.g., Gitcoin Passport).\n- Standard Schemas: Widespread adoption requires shared data formats (see ERC-7232).\n- One-Click Integration: SDKs for dApps to query and honor portable reputation.

The endgame: loyalty that understands user goals, not just actions. Integrates with UniswapX, CowSwap, and Across.\n- Automatic Optimization: System routes your trade to get the best price and maximize your loyalty points across venues.\n- Loyalty-as-a-Service: Wallets like Rainbow or Safe bundle reputation to get users better deals.\n- User-Owned Algorithms: Users can deploy their own loyalty-strategy smart contracts.