The project under scrutiny today — Fluz Fluz, is also for everybody who shops. Why such a strange name for the token? The fact is that fluz is Arabic for money, wealth, or a prosperous man. In the project network, the term also indicates reward points earned.
The seventh project under scrutiny today — Fluz Fluz, is also for everybody who shops. Why such a strange name for the token? The fact is that fluz is Arabic for money, wealth, or a prosperous man. In the project network, the term also indicates reward points earned.
87-page White paper is a fascinating read to understand the Fluz Fluz working flow. One have to spend a lot of time but in the end all efforts and time costs will be rewarded. The project team consists of 6 persons, the Advisors Board of 9 persons.
The idea of the project
Any person wants to pull more money out of their everyday purchases. We are budget conscious and looking to leverage our purchasing power. Fluz Fluz implements a binary model, where every network member invites two new members into his/her downstream. These two members will invite two new members respectively.
The team chose Colombia to test Fluz Fluz, because of the country’s stable economy and large development opportunities. Household consumption reached USD 177bn in 2016 in the country. The original app allowed users to purchase digital gifts cards with rewards based on how much they and those in their network spend. With a premium spot within this network it’s easy to see how quickly the rewards can stack up. In less than one year of operations early network users are receiving hundreds of dollars every month in cashbacks. There are more than 40 000 users now.
Consumers are free to reflect their normal shopping habits and preferences towards any of the available retail partners. As long as the Fluzzers make a minimum of two monthly purchases of any value and at any network retailer; in additon to maintaining activity on the site under a “give and take” logic, they can generate cash back through the power of bundling purchases to obtain large discounts.
Consumers, our so-called “Fluzzers”, can earn thousands of dollars every month from the combined purchases of their network. Moreover, they can transfer Fluz (cash back rewards or points) to anyone in their network, in an easy-to-use and intuitive mobile environment. Fluzzers can instantly begin earning cash back without changing their shopping or work habits, by purchasing and redeeming digital gift cards from the vast and growing list of everyday retailers.
“The concept of saving is at the core of FluzFluz. But FluzFluz has also built incentives for organizers to help people save. The more people you help save, the greater your own income. So this is organizing teams around a social good. This essential human goal is what makes me think it will succeed” (Keith Teare, Board advisor, TechCrunch co-founder).
How it works
Fluz Fluz is based on consumer reciprocity. The consumer who contributes with his/her consumption, receives cash back Fluz points from the purchases of others. The consumer who does not purchase on his/her own behalf, cannot expect to receive cash back Fluz points from the consumption of his network.Hence, the ‘minimum consumption rule’ states that in order to stay active in the network, a consumer needs to purchase at least 2 digital gift cards from the offered catalogue per month. There is no requirement as to which digital gift card or which amount.
This should not yield any extraneous burden on the consumer given the broad variety of everyday household consumption merchants. In turn this rule guarantees an active and contributing consumer network.
Premier Seats 1 and 2, offered in this tokensale, enjoy an initial exemption from this rule making them attractive for anyone to buy, even those living and consuming in a region where Fluz Fluz is currently inactive.
If within the first month the minimum consumption rule has not been met, the Fluzzer receives alerts and the chance to recover during the 2nd month. If the minimum consumption level is not met at the end of the 2nd month, the network will automatically suspend the consumer from being able to purchase and receive further Fluz points from his/her network.
The Fluzzer may request a re-invite at any given moment and will at no times loose his accumulated Fluz points. If the reinvite is accepted, so is the consumer. But he/she will lose original network seat membership and be placed into the next free seat by normal upstream succession.
This in turn signifies that the free network seat is occupied by the next level of the downstream network. If there are 2 active members, the system automatically allocates the freed network seat to the Fluzzer who has a higher total historic transaction volume history on Fluz Fluz.
In this regard, Fluz Fluz stays coherent in rewarding consumption. The entire affected part of the network is moved in succession closing all free upline seats.
Through this mechanism, active Fluzzers may eventually improve their absolute network seat. The above mentioned mechanisms are already in place and working properly in the Colombian consumer network.
The only bonus is based upon network consumption; the mere act of inviting new members is not rewarded. Last December the team launched an on-line calculator to enable Fluzzers check expected cash-back from their downstream colleagues.
Premier Seat Membership
The sum of all FLUZ Tokens of this issuance equals the sum required for all offered premier seats. Thereby all qualifying token holders are guaranteed their seat, should they choose to activate it ahead of the operational launch in the US.
Qualifying Token holders will be able to activate premier network seats membership in the newly formed global consumer network. A qualifying token holder is either someone who has purchased 10,000 tokens to unlock a Tier 2 premier seat membership or, someone who has purchased 20,000 tokens to unlock a Tier 1 premier seat membership.
30 days before the operational Fluz Fluz launch in the United States and thereby the launch of the global consumer network, qualifying token holders will be able to activate their premier seats membership. All qualifying token holders will enter into a pool of random premier seat membership allocation within their respective tier level to define their exact seat. This will guarantee the most transparent network seat membership allocation.
If in the event that ahead of the random premier seat allocation there are more Tier 1 qualifying token holders through the concentration of token purchases than the 4.095 available Tier 1 premier seats memberships, the random selection mechanism will decide which Token holder receives a Tier 1 seat membership or as an alternative two Tier 2 seats membership. If in the event there are less than 16.383 premier seat membership activations, the remaining premier seats of both Tiers will remain blocked in the global consumer network for future allocation. Once a Tier 1 or Tier 2 premier membership is activated through FLUZ tokens, the tokens loose the premier seat membership activation capacity. They retain their community superpower utility.
In the Fluz Fluz model everyone wins, and the cash back amounts differ for every retail code. It is understandable that retail margins and code denominations vary from category to category and Fluz Fluz manages different retail negotiations with its partners. From there, different cash back amounts can be redistributed to the network. The cash back amounts are transparently shown to the purchaser before concluding the transaction.
Fluz and retailers
“The business model of Fluz Fluz has permitted us to drive additional revenue to our stores with sustainable incentives,” says German Huertas, Nike Colombia CFO
Large merchants are able to benefit through Fluz Fluz by pooling consumer demand, and receiving valuable ground floor spending data and insight. Smaller merchants can benefit by acquiring new customers who are part of the Fluz Fluz network.
- Fluz Fluz generates recurrent revenue for the retailers on a lower cost basis compared to other online sales channels (compare with high discount Groupon type models).
- Fluz Fluz attracts new customers to retailers showcased on the Fluz Fluz site.
- The incentive cost for the channel from the retailer’s perspective is wrapped up in Fluz points and not as face value discounts which preserves the retailer’s brand image.
- Fluz Fluz works as an outsourced loyalty program for many retailers.
Fluz Fluz offers an array of services for corporations that want to transfer digital gift cards to their consumers. Fluz Fluz is 100% online and due to its easy to use gift card system it does not affect customer shopping behavior. In future FLUZ coins accumulation and redemption for gift card purchases are planned.
There is great potential in the digital gift card market. In the United States the total gift card market is an estimated $307 billion. The potential for the entire gift card market by 2024 is $698bn. In North America, about 23% of all mobile commerce is gift card sales, and if we assume that percentage holds true for United States, almost $46bn could be the market for electronic Gift Cards. According to First Data, the global leader in payment technology and services solutions which acquired Gyft, estimated in 2014 that virtual and mobile gift cards commanded nearly $100bn of the entire gift card market capitalization. In Latin America, only 3% of its online commerce is paid by gift cards, showing huge potential for growth.
Fluz and blockchain
Currently, the model is up and running in an off-chain environment, but intends to switch gradually to blockchain technology in order to sustain the scale-up to a global consumer cash-back network based on digital gift cards. The team recognizes that blockchain is an evolving technology and that the current eco-system of traditional third party merchants and consumers will only allow it to implement a transformative vision of the rewards industry in a step-by-step approach.
Together with the launch into the US consumer market, Fluz Fluz will look to transition its current Fluz points to FLUZ public exchange ERC20 based Fluz coins enabling accumulation of cash-back rewards in FLUZ coins as well as redemption of FLUZ coins for new gift card purchases. Using an ERC 20 compatible FLUZ coin as a cash-back unit would allow Fluz Fluz to offer its users to freely trade their cash back rewards on public exchanges thereby offering an enhanced value proposition over limited loyalty programs from the old economy.
Note: The Fluz rewards coin is unrelated to the FLUZ token
FLUZ Tokens have the first function of activating premier seat memberships on the Fluz Fluz global network to maximize rewards.
A MLM-like Cash back network and pay out structure
Fluz Fluz works under the following transparent mechanism: each digital retail code purchase generates Fluz points for the purchaser and up to 15 upstream Fluzzers in his/her direct line. As we can observe in drawings above, Fluz Fluz was set up as a binary network with a total depth of 16 levels contributing to each Fluzzer. Each Fluzzer has the full potential to build a 2¹⁶ consumer network, resulting in 65,535 consumers plus oneself to generate cash back rewards from their daily consumption.
This structure was carefully chosen to foster teamwork among the network members and avoid as much competition as possible amongst the closest social circle working with a 3^X, 4^X, etc structures.
From 100% of the cash back amount available from an individual purchase, 50% goes to the purchasers in the form of Fluz points (i.e Fluz consumption coins for the US launch), 50% are split up evenly among the participating upstream Fluzzers. So, in the normal case the 50% will be divided between 15 upstream Fluzzers.
Fluz Fluz should integrate easily into crypto and fiat currency payment systems.
How Does Fluz Fluz Grow?
Fluz Fluz offers two forms of Fluzzer onboarding:
1. Through direct invitation into a specific Fluzzer´s network either via email or personal reference code. This is the classic form for Fluzzers to organically grow their network of friends and close social circle by being able to control who is invited into their particular downstream network.
2. Fluzzers who do not disable the function of auto network-fill can benefit from the automatic horizontal network fill mechanism. Unrelated and uninvited Fluzzer candidates can just download the Fluz app and are then instantly allocated into the next available seat in the overall network.
The auto-fill works with a horizontal priority (opposed to a vertical fill), guaranteeing a smooth growth and extension of the network, without favouring particular parts of the network over others. This is particularly interesting for early token holders who would directly benefit from this mechanism.
More details: https://ico.fluzfluz.com
From January 18 till February 22, 2018
Price: 1 FLUZ = 0.10 USD
Accepting: ETH, BTC, Fiat
Soft cap: None as FluzFluz has the advantage of being a successful existing business, not just an idea. That is why there is no soft cap.
Hard cap: 20,000,000 USD
If You are Cashback Minded, You’ll Be Crazy about FLUZ Token!
Participating in Fluz Fluz you will earn passive income every day.
Premier memberships and their future cash backs may enjoyed from anywhere in the world!
I think this project deserves 7 points from 10.