StarPOINTS that remain outstanding and are not yet redeemed or converted cost the issuing merchant nothing. When a merchant redeems StarPOINTS, it immediately has an asset that can be reissued, converted to StarX Tokens, or held on its balance sheet as a store of value.
StarPOINTS are tracked by Starworks on the blockchain throughout the StarWORLD Ecosystem, and reports all relevant transactions to the merchant in simple digital reporting. The merchant benefits from spending less time managing the loyalty program and more time operating their business.
Because the customers cover the cost of StarPOINTS in the pricing of the merchant’s products and services, StarPOINTS already redeemed by the merchant are an asset, and StarPOINTS issued and still outstanding are only a contingent liability. Loyalty points that are never redeemed no longer accumulate as a perpetual and problematic liability on the merchant’s balance sheet.
A merchant that redeems more StarPOINTS than it issues benefits from a balance of payments surplus, and can hold them as a financial asset that can be borrowed against or liquidated when needed, all the while potentially appreciating through the growing following of the underlying StarX Tokens.