• Ruben Salazar Genovez, CEO at Gennius XYZ


• 26.05.2025 08:00 am
#RewardsInnovation #LoyaltyEconomy

At Gennius, we’ve long argued that loyalty rewards don’t fail because they’re unused—but because they’ve never truly worked. Not for brands struggling to secure meaningful engagement, nor for users whose points quietly expire before they’re ever spent and experience the real value. Instead of value, most programs offer friction—hoarded points, convoluted redemptions, and a currency that isn’t really currency.

The result? A global ecosystem where more than $200 billion in points sit idle each year—trapped in closed systems, governed by expiry dates and limited choice. The less successful loyalty programs have become a game of breakage, not benefit. So, we posed a basic question: what if reward assets really behaved like money?

Liquidity, Not Lint

Our partnership with Fuze in MENA is a step toward answering that. We’’re reengineering the loyalty model connecting it to the open digital economy. Fuze provides the institutional-grade rails regulatory-compliant, security-first infrastructure capable of powering asset exchange at scale. Gennius contributes the engine: the GMIX One Token platform, already integrated with over 80 banks and representing $144 million in tokenized loyalty value.

The premise is simple. Loyalty points, once siloed and inert, can become liquid and interoperable. You earn them in Dubai spend them in London. Save them, swap them, or use them to buy a concert ticket in Vienna. Even trade them for a digital collectible on a blockchain marketplace. Not close loop credit but real programmable value.

From Points to Protocols

For decades, loyalty has operated behind walls. Earn here. Redeem here. A convenient system for points or miles issuers less attractive users who remain disengage with the brands. But consumer behavior has changed. People now stream, shop, bank, and travel across digital and geographic borders. They expect their rewards assets to follow. And in a world with tokenized assets, those borders no longer make much sense.

Tokenized loyalty points such as those issued by Gennius XYZ are assets, not vouchers nor coupons. They are portable, divisible, programmable, and exchangeable. Users can hold them in digital wallets, stake them for future rewards, or convert them into other assets. This is more than a technical shift; it’s a strategic move. To follow today consumer rewards program owners will need to move from passive benefits based on expiry to active consumer participation based on utility.

The obsolete view on  Breakage Economics?

The traditional loyalty model depends on breakage users not redeeming their points equal not enjoying the brand benefits. In 2022, McKinsey estimated that over 30 percent of loyalty points globally go unredeemed. For program owners, that unspent value quietly props up the balance sheet. But this model is aging poorly. As users become more financially literate and demand flexibility, value left on the table becomes a lost opportunity, not a hidden gain.

Leading fintech, banks, airlines and consumer brands are starting to catch on. Engagement not hoarding is the new KPI. Tokenized systems offer full transparency, on-chain traceability, and dynamic reward mechanics. Loyalty stops being a liability and starts becoming an asset literally.

Eyes Open, Not Wide Shut

Still, transformation doesn’t happen in a vacuum. Regulatory frameworks are evolving. Jurisdictions move at uneven speeds. And while crypto-native users may understand tokenization, the average customer still asks: ‘Can I just get my coffee?’

Education is essential. Trust is earned. Which is why we’re building for the long haul. Fully compliant. Secure by design. Designed for adaptability from Abu Dhabi to Amsterdam.

Our partnership with Fuze is more than regional expansion its strategic validation. A signal that MENA markets, often forward-leaning on digital finance, are ready to lead a new wave of Digital Engagement.

Tokenized Loyalty Is a Direction, not a Disruption

Let’s be clear this isn’t about disruption. That word tends to flatter chaos and excuse poor design. What we’re building is structure. Usable, scalable, future-proof architecture that connects loyalty to value, instead of locking it behind close loop gates.

At Gennius, we don’t see tokenized rewards as a gimmick. We see them as tools for user empowerment, and more transparent ecosystems. A way to turn points into protocols, and loyalty into liquidity and the best way for rewards programs owners: fintech, banks, OTAs, wallets to evolve from breakage to utility and engagement.

The future of rewards is in universal utility and value.

Sources:

McKinsey & Company: Loyalty Economics Report (2022) – estimates $200B in unredeemed rewards globally

Gennius XYZ internal data: $144M in tokenized value circulated via GMIX One Token platform

Fuze: Regulatory-compliant digital asset infrastructure supporting MENA’s digital finance growth