Tunl AMA with CRE8R DAO
Primer: Tunl is an up-and-coming project that is supercharging brands. Find out how their NFT-powered loyalty program helps brands to build their communities and offers consumers exclusive perks and discounts. Don’t miss out on this Tunl AMA where Fugu from CRE8R DAO dives deep with LJ Northington, Co-Founder of Tunl.
Background
LJ Northington
Co-Founder and CEO of Tunl
His focus is on products
Tunl started in Feb 2022
His Team
3 full-time team members
2 part-time team members
His dad, Lavance, is his Co-Founder
How Did He Get His Dad On His Team?
His dad was an entrepreneur his entire life
Got to see his entire journey with multiple companies
Always wanted to do something similar to his dad
After graduating, he approached his dad to work on Tunl
His dad was working on a blockchain-powered clinical trials ecosystem
Coming Up With The Idea Of Tunl
In his previous job, he was working on a streetwear brand
Spoke to the creative director and the conversation turned towards digital fashion
Started researching about digital fashion, the metaverse, and NFTs
Came up with the idea for Tunl in August 2021
Going Down The NFT Rabbit Hole
Getting Started With NFTs
Started by trading NFTs
In his day job, he became the NFT/Web3 guy
Helped with their go-to-market strategies
Tried to implement NFTs into their loyalty programs
NFT Projects That He Got Into
CryptoVenetians was the first project he got into
Had an in-person minting process
Was early on some Solana projects
Tunl
What Is Tunl?
Tunl helps brands build NFT-powered loyalty programs
This enables brands to build personalized shopping experiences based on consumer product history
Why Is It Called Tunl?
Their initial idea was to create 3D spaces that could power experiential commerce
These 3D spaces would serve as a MySpace-like profile for everyone on the platform
Were going to call those spaces tunnels, which were where the name came from
How Does It Work?
Brands tie a digital replica/NFT of the product to the actual physical product
Consumers create an account with Tunl
When consumers buy from Tunl-integrated brands, they go through the Tunl Shopify app
Consumers are airdropped an NFT that acts as a loyalty card
Brands can reward the consumer with special perks, discounts, etc.
As the consumer accumulates products in their wallet, brands will have a view into their shopping history
The user’s identity is kept private by using ZK proofs
Consumers shop and earn NFTs. Hence, shop-to-earn
Can Consumers Pay With Crypto?
They do not handle the checkout process
The payment processing depends on the individual brand
Designing The NFTs
Working with artists to commission the designs
Want to onboard more artists
If the brand has an image they want to use, they can just upload it and create a smart contract for that NFT
Funding Sources
Receiving A Grant From Polygon Village Ecosystem
It happened by chance
Was looking for an ecosystem to build on
Knew someone from Polygon and they connected them to the Polygon Village Ecosystem
Do They Have Any Other Funding Sources?
Raised from friends and family in Feb
Providing Non-Crypto Natives With An Address
When users create a profile with Tunl, they will have a wallet automatically generated for them
Users do not need to interact with any seed phrases
Users can log in with their email account or any of their Web2 socials
Crypto natives could just connect their existing wallet
Blockchain Expansion Plans
As they grow, they need to support more blockchains
“The end game for digital commerce, in my opinion, is selling real products in 3D spaces.”
- LJ Northington
Shopping In Digital 3D Spaces
E-commerce stores are just a white storefront with a grid of products
It’s due for an update and the Metaverse can provide that
In Decentraland, there are fashion weeks
When an NFT that is tied to a product is sold on the blockchain, they can alert the company to push the purchase order through their fulfilment system and have them deliver the product in real life
Will be starting out in the US
How Do Tunl Generate Revenue?
It’s a subscription model
Brands pay a monthly subscription to access all of their features
What Is The Value For Consumers?
Consumers get treated like a VIP from their favourite brands (e.g. discounts and exclusive perks)
They get digital products that their avatar might be able to wear
Competitors
Their competitors are trying to tackle the same onboarding process as well
Doesn’t think it’s a winner-take-all market
Is There A Gamification Aspect That Tunl Would Introduce?
It’s up to the brands how gamified/involved they want to be
Responding To Pushback Against NFTs
Their Strategy
Focused on the messaging with each brand they work with
Building trust and explaining to consumers why they are doing this
Putting together a series of white papers to help brands understand what they are getting into as well as to convey their story to consumers
Current Situation With Corporate NFTs
Brands are starting to realize that they have to do things differently from crypto native NFT projects
They are building around their products
Linking Fiat Payment To The NFT Airdrop
Consumers can claim their NFT on order confirmation
There will be a pop-up stating that they have earned this new NFT that gives them various perks
Users will be able to view all of their NFTs in their profile on the Tunl website
Diving Deeper Into The NFTs
Can Holders Resell The NFTs On Secondary Markets?
Holders can resell their NFTs on NFT marketplaces
Discussing with brands whether to issue soulbound NFTs or requiring a minimum holding period for the NFT
Can People Earn NFTs From Completing Tasks?
Will be incentivizing the community to act on behalf of the brands:
Filling out a survey
Leaving a product review
Posting something on socials
“The power in the traditional NFT community is all this whitelist grinding, right? People will jump through insane hoops to get on a whitelist.”
- LJ Northington
Number Of Editions For The NFTs
Depends on the brand
Digital and Real Life Integration
One of their big goals is to have users buying a real life item and getting an NFT for it
Need to build up the infrastructure for it
Clients
Who Are Some Of Their Clients?
Launching a couple of online CPG brands next month
Their 2nd cohort is more fashion-focused
Incentives Used To Onboard Clients
Mostly based on their pitch
A lot of brands are wondering how they can get into the space
Starbucks has one of the biggest loyalty programs in the world and they are switching it to an NFT-powered loyalty ecosystem
Want to help brands that follow this trend
Tunl is reaching out to various brands. They look for brands that are:
Focused on communities
Open to trying new things
Providing Support
Have worked personally with every brand they onboard
Customized their playbook to each brand
Personalization And Targeted Marketing
Will not be able to do it until they have some scale
The Community
Their Plans For A Community/DAO
Their goal is to fully decentralize the platform and hand it over to the DAO
Have to lay the groundwork for it
Do They Have A Name For Their Community Members?
Tunlers
Where Can People Go To Join Their Community?
Started getting active on Twitter last week
Setting up their Discord and Telegram
Will be interacting with the community through Q&As and fireside chats
Will There Be Tunl NFTs?
Will have some NFTs at the Tunl level
Might use it as a fundraising mechanism
Security
Working with top class cybersecurity teams
Their devs have previous work experience in Web3/FinTech applications, which requires the highest level of security
Working with best-in-class wallet providers
What NFT Projects Is He Into These Days?
Projects that are innovative and doing new things:
DeGods on Solana
10KTF on Ethereum
Has sold his entire NFT collection to get Tunl off the ground
Roadmap
Launching their beta program next month
Will build social shopping and product discovery features on the consumer side
Will incorporate feedback from users
Tunl NFT from their brands are going live in mid September
Tunl NFT from Tunl itself will be released mid next year
How Can People Stay Updated?
Follow them on Twitter
Sign up for their mailing list at their website
Join their Discord and Telegram
All information presented above is for educational purposes only and should not be taken as investment advice. Summaries are prepared by The Reading Ape. While reasonable efforts are made to provide accurate content, any errors in interpreting and summarizing the source material are ours alone. We disclaim any liability associated with the use of our content.