# Why Spree?

### The Airdrop Problem

Web3 protocols spend between $5M and $50M per airdrop campaign. The results are consistent across the industry: 30-day retention below 5%, token sell pressure within 48 hours of distribution, and capital that flows to whichever protocol offers the next highest return.

Airdrops distribute value with no conditions attached. Users have zero incentive to stay.

### The Loyalty Vendor Problem

Consumer brands face a different version of the same issue. Enterprise loyalty platforms from incumbents charge $500K to $2M in annual SaaS fees, require $200K to $1M in implementation costs, and take 6 to 18 months to launch. Mid-market brands and regional chains cannot afford the upfront capital. The ones that can afford it wait over a year to see whether the program works.

### Conditional Rewards Fix Both

Pending SP (pSP) is a conditional reward token. Brands distribute pSP and the underlying SP stays escrowed in a vault. The recipient sees the reward in their wallet, but cannot redeem it until they meet the settlement condition.

Settlement conditions are programmable per campaign:

* **Web3:** Hold TVL for 30 days, complete N swaps, maintain a staking position
* **Brands:** Confirm a purchase, attend an event, reach a spending threshold

pSP converts 1:1 to SP after the user meets the condition, and the user can redeem for stablecoins. Unfulfilled pSP expires and the budget recycles to the campaign for future distribution.

In pilot deployments, this recycling mechanism has reduced reward budget waste by 35% or more compared to unconditional distributions.

### Economics

Spree charges nothing upfront. Brands and protocols fund campaigns with stablecoins. Fees are taken on transactions, not on contracts or licenses.

| Operation                | Fee   |
| ------------------------ | ----- |
| Mint SP from stablecoins | 0%    |
| Convert SP to Branded SP | 0%    |
| Convert Branded SP to SP | 0.25% |
| Distribute pSP           | 0.20% |
| Finalize pSP (settle)    | 0.20% |
| Redeem SP to stablecoins | 0.50% |

No SaaS fees. No implementation fees. No minimum commitments.

### The Coalition Model

Every brand on Spree operates within the same infrastructure. A user holding FLY Points (from an airline) can convert to base SP, then convert to STAY Credits (at a hotel chain), paying the 0.25% conversion fee. Brands get cross-brand interoperability without bilateral integration agreements. Their loyalty token has utility beyond their own ecosystem from day one. Users can move loyalty points between brands instead of watching them sit locked in silos.


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