> For the complete documentation index, see [llms.txt](https://fiveelementslabs.gitbook.io/tide/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://fiveelementslabs.gitbook.io/tide/projects/rewards/dynamic-nft-loyalty-program.md).

# Dynamic NFT Loyalty Program

<figure><img src="/files/PfuXN4jewWOBc9L1wbuy" alt=""><figcaption></figcaption></figure>

The Dynamic NFT Loyalty Program is a particular custom campaign on Tide, enabling web3 growth teams to leverage badges to cluster and differentiate between users based on their on-chain activity and social media interactions over time. Moreover, by creating user tiers, it's possible to adopt a data-driven approach to rewards, incentives, and utility allocations.&#x20;

## **How does it work?**

It is very simple:

* Users collect an SBT (non-transferable NFT) on Tide after performing some pre-defined tasks
* Users accumulate on-chain points and upgrade the NFT graphics each time they perform on-chain actions
* Rewards, such as ERC-20 tokens, are distributed based on users' points leaderboard

**What are the advantages with respect to a traditional quest?**

* **Better UX:** After users claim the SBT on Tide, users can grow their status by simply using the app. No need to swap between platforms anymore.
* **Data-driven:** NFTs track and score the entire users' on-chain activity & change accordingly, enabling the creation of user clusters/tiers.
* **Native experience:** Embed leaderboard and tasks on your website so users can see points and statuses directly on the dApp.

[**Read about how Magpie is implementing this program through Tide here.**](https://medium.com/@Tide_web3/case-study-how-to-use-dynamic-nft-to-engage-communities-with-magpie-4229824815c7)