What is Assemble Protocol? All You Need to Know About ASM

Assemble Protocol (ASM) is a blockchain-based platform enabling users to aggregate and spend reward points like a unified currency.

In a world where loyalty rewards are abundant yet fragmented, consumers often find themselves with points they can not use, facing expiration dates and limited redemption options. This gap between earning and spending points has led to widespread dissatisfaction, highlighting a disconnect in the reward point market’s potential versus its real-world application. By addressing the key challenges of point expiration, redemption limitations, and fragmented loyalty programs, a solution emerges that redefines the value and utility of reward points.

Assemble Protocol (ASM) is a blockchain-based platform that revolutionizes how points are accumulated and spent, bridging the gap between consumers, businesses, and retailers for a seamless, value-driven experience.

What is Assemble Protocol (ASM)?

Assemble Protocol emerged from the collaboration between STA1 and YWMobile, leveraging their extensive experience in the South Korean financial market to tap into the largely unexplored Korean Reward Point Market, valued at 20 trillion KRW. This initiative builds on the broad application of reward points across industries, initially spurred by the airline mileage system and significantly concentrated within the credit card ecosystem. By 2019, the valuation of Korea’s e-commerce points system soared to 20 trillion KRW, highlighting a vast yet underutilized global market potential estimated by the Japanese Yano Research Group at 200 trillion KRW.

STA1.com, with its 520,000 subscribers and over 3,000 partners, specializes in web crawling and data extraction. At the same time, YW Mobile offers AI-driven real-time mobility services, contributing its software engineering expertise to Assemble Protocol. The project’s journey began in the latter half of 2019 with team formation and concept development, quickly followed by key milestones such as the White Paper release, partnership with Style.com, the launch of ASSEMBLE Wallet, and the completion of the ASSEMBLE Marketplace development by the end of 2020. In 2021, Assemble expanded its digital footprint by launching its web and mobile platforms.

Targeting a 0.5% market share, or 100 billion KRW, Assemble Protocol aspires to redefine the utility of reward points, offering users worldwide the freedom to use their points akin to cash. With partnerships encompassing over 750,000 users and 3,500 shopping malls, Assemble Protocol aims to integrate diverse points into a single, easily manageable asset, evidenced by its significant user engagement and platform growth.

How Does Assemble Protocol Work? Marketplace and Data Infrastructure

Assemble Protocol envisions establishing a vibrant ecosystem that benefits point providers, consumers, and retailers alike, harnessing the power of blockchain technology to offer a unified point integration platform. This initiative aims to connect consumers, endowed with robust purchasing power, directly with retailers, thereby enhancing the overall utility and flexibility of reward points.

At the heart of Assemble Protocol are three critical components: the Point Exchange (PX), the Marketplace (MP), and the Data Infrastructure (DI). The PX is the cornerstone for integrating and exchanging loyalty points into Assemble Points (ASP), the platform’s primary currency. This transformation is facilitated by the point providers’ requirement to stake ASM tokens, thereby enabling an efficient exchange mechanism for users. The introduction of ASP ensures a stable value for loyalty points, mitigating the volatility often associated with digital currencies while offering the benefits associated with ASM token staking.

The Marketplace, or MP, emerges as an innovative online arena where users can employ ASP to purchase goods and services from partners within the Assemble ecosystem. Upon converting their external loyalty points to ASP, consumers unlock the ability to transact with a wide range of affiliates, enhancing the redeemability and utility of their points. This system not only facilitates daily profit settlements for sellers but also significantly broadens the scope of point utilization, challenging traditional limitations and offering unprecedented freedom in reward point expenditure.

Moreover, Assemble Protocol addresses the inefficiency of disparate reward systems by enabling the conversion of various loyalty points into a single digital asset, ASP, which can further be exchanged for ASM tokens. This approach not only simplifies point management but also breathes new life into potentially expiring points, with the Financial Supervisory Service highlighting the substantial value of points that cease to exist annually.

Transitioning from the Marketplace to the topic of Data Infrastructure, Assemble Protocol leverages the accumulated consumer behavior data to create a comprehensive database. This infrastructure supports targeted advertising and market analysis, utilizing ASM tokens as a medium of exchange. By offering detailed insights into consumer patterns, Assemble Protocol not only enhances the efficacy of its marketplace but also sets the stage for a deeper exploration of how data analytics can further refine and personalize the user experience within the Assemble ecosystem.

Source: Assemble Protocol whitepaper

Data Infrastructure

Assemble Protocol is setting the stage for a transformative approach to data utilization within its ecosystem, focusing on developing a robust Data Infrastructure (DI) that leverages the vast array of partner data, including customer purchasing behaviors and patterns. This initiative is poised to create a dynamic data framework, enabling advertisers to craft targeted strategies and enhance the precision of their advertising efforts.

Central to this development is the concept of Consumer Analysis, which harnesses the power of the assembled data to identify and engage consumers with significant purchasing power. By analyzing the nuanced behaviors of platform users, advertisers can tailor their campaigns to resonate deeply with specific demographics, thereby increasing the effectiveness of their advertising spend. This analytical approach not only promises a higher conversion rate but also offers a tool for measuring the Return on Ad-Spend (ROAS), making it a critical asset for achieving advertising efficacy.

The DI’s capabilities extend to Advertisement Placement, where blockchain-stored consumer data is used to pinpoint potential targets for highly personalized advertising. The platform encourages consumer engagement with advertisements by offering Assemble Points (ASP) as incentives, aligning consumer interests with those of advertisers. This mechanism not only reduces advertising costs but also enhances consumer satisfaction by eliminating intermediary agencies.

Moreover, the DI supports various advertisement formats, including Banner and Push Ads, Time Deals, Pop-up Ads, and Featured Products. Each tool is designed to optimize the timing and relevance of advertisements, ensuring that promotions reach the most appropriate audience segments. By leveraging specific consumer access times and purchasing power data, advertisers can deploy these tools at optimal moments, significantly boosting the likelihood of engagement and purchase.

Source: Assemble Protocol whitepaper

Assemble Protocol Use Cases

Assemble Protocol stands as a versatile platform transforming how loyalty points are managed and utilized, offering both consumers and businesses many benefits. This innovative ecosystem supports a variety of use cases that enhance the shopping experience and expand market opportunities:

• Streamlined Shopping Experience: Users can integrate various loyalty points into Assemble Points (ASP), simplifying their shopping process. This unified system allows for purchasing a diverse range of products, such as home appliances, beauty products, food items, and gift certificates, through the ASSEMBLE Market, eliminating the complexity of managing multiple point systems.
• Enhanced Consumer Engagement: Businesses can engage a broader audience by accepting ASP, tapping into a pool of users with accumulated points eager to be spent. This opens new avenues for growth and customer loyalty.
• Promotional and Marketing Opportunities: The Data Infrastructure component of Assemble Protocol enables targeted advertising and promotional campaigns, allowing businesses to reach specific consumer segments with high precision and effectiveness.
• Flexibility in Point Redemption: The protocol offers flexibility and freedom in point redemption, including converting points into ASM tokens, which can be further exchanged for fiat or other cryptocurrencies, providing users with tangible value for their loyalty.

In conclusion, Assemble Protocol revolutionizes the loyalty points landscape. It offers a unified, blockchain-powered platform that benefits consumers seeking versatility in point usage and businesses aiming to enhance their reach and consumer engagement.

What is the ASM Coin?

ASM is the native cryptocurrency of the Assemble Protocol for point integration and rewards. Its maximum supply is capped at 1.5 billion units, of which 1.47 (98%) are already in circulation (February 2024).

ASM Coin, the utility and staking token of the Assemble Protocol, is designed to function within a comprehensive ecosystem to revolutionize the loyalty points market. It is an ERC-20 token, and it serves as a cornerstone for various interactions within the platform, including point exchange, marketplace transactions, and data infrastructure utilization.

ASM plays a pivotal role in the Assemble ecosystem by facilitating the purchase and staking of tokens. Holders can stake ASM to access various benefits, such as discounts and rewards when purchasing goods with ASP (Assemble Points) from retailers on the platform. This encourages using reward points over traditional payment methods, offering a unique value proposition for consumers and point providers. The total issuance of ASM is capped at 1.5 billion, with a dedicated portion sold through ICO and provisions for token burns to manage supply.

The thoughtful distribution of ASM tokens includes:

• 20% for token sales to incentivize participation from a broad audience
• 18% allocated to strategic partners, fostering collaboration and expansion
• 16% dedicated to the ecosystem’s growth, ensuring a robust and engaging platform
• 14% for marketing efforts to enhance visibility and user acquisition.
• 12% directed towards development, supporting innovation, and platform improvement
• 10% held in reserve for future needs and contingencies
• 5% awarded to the team & founders, recognizing their contribution and commitment
• 5% for advisors and early supporters, acknowledging their guidance and support

Source: Assemble Protocol whitepaper

Use of Fund: The deployment of funds reflects a balanced approach to platform evolution and market penetration:

• 30% for development, underpinning technical advancements and new features
• 30% for sales and marketing, crucial for building brand awareness and driving adoption
• 20% towards operation and business, ensuring smooth platform operations and strategic growth
• 20% allocated to other essential areas, demonstrating flexibility to adapt and innovate as the platform evolves

This strategic allocation and utilization of funds and tokens underscore Assemble Protocol’s commitment to creating a versatile and user-centric platform, driving the integration of loyalty points in a blockchain ecosystem.

Source: Assemble Protocol whitepaper

ASM Use Cases

ASM tokens play a pivotal role in Assemble Protocol, enabling a seamless blend of loyalty points integration, marketplace engagement, and platform growth. These tokens unlock a spectrum of use cases, fostering a vibrant ecosystem for users and businesses alike:

• Point Conversion and Integration: Users can convert loyalty points from various sources into ASP and ASM tokens, enabling seamless integration and management of rewards.
• Marketplace Participation: Merchants and point providers can stake ASM to participate in the marketplace, offering their products and services to a broad audience.
• Enhanced User Engagement: Staking ASM tokens can lead to increased ratings on the platform, unlocking additional benefits and incentives for users.
• Advertisement and Promotions: Businesses use ASM tokens to run targeted advertisements within the Assemble ecosystem, leveraging the data infrastructure to reach relevant consumer segments.
• Revenue and Platform Development: Proceeds from ASM sales and platform revenue are allocated towards development, marketing, and operational efforts, ensuring the platform’s growth and sustainability.

Assemble Protocol Ecosystem

Strategic partnerships with innovative companies enrich the Assemble Protocol ecosystem, each contributing unique technologies and services to enhance the platform’s value proposition.

STA1.COM, a pioneering fashion curation commerce powered by sophisticated crawling technology, has significantly impacted the online fashion retail space since its app launch in March 2016. By aggregating data on millions of products, STA1.COM brings unparalleled efficiency and pricing advantages to consumers, boasting impressive metrics like 64 billion won in transactions and a subscriber base of 520,000. This partnership aims to leverage STA1.COM’s crawling technology to boost the competitiveness and reach of the ASSEMBLE Marketplace, inviting over 5,000 partners to the platform.

ClubPass, another major partner, dominates Korea’s club culture scene with its O2O app, facilitating access to the vibrant world of EDM and club music. With 480,000 downloads and a community of 230,000, ClubPass offers a gateway to exclusive events and fosters a dynamic social ecosystem for club enthusiasts. Their expertise in the EDM market and strong user base position them as a key player in introducing ASSEMBLE Points (ASP) to a young, tech-savvy audience, promising early market penetration.

YWMobile, specializing in “Mobility on Demand” services, integrates advanced AI to provide seamless chauffeur services. With significant achievements like 2.1 billion KRW in sales and a strong user engagement, YWMobile’s loyalty program represents a prime example of how ASP can offer added value, allowing customers to redeem points across a broad spectrum of products and services in the ASSEMBLE ecosystem.

Together, these partnerships diversify the utility of ASSEMBLE’s platform and ensure its position as a frontrunner in harnessing blockchain technology for loyalty point integration, making it a compelling proposition for users and businesses alike.

Is ASM a Good Investment?

The adoption of ASM and its blockchain foundation offers a novel solution for streamlining the collection and management of reward points, potentially increasing efficiency and interoperability among diverse loyalty programs. This approach promises enhanced security and transparency for transactions. However, it raises an important question about the necessity of blockchain technology for such applications. While blockchain brings undeniable benefits, the objectives of simplifying reward points processes could arguably be achieved through other technological means as well, without necessitating blockchain’s structure. This consideration invites a balanced view on whether the specific advantages of blockchain are essential for the goals of the Assemble Protocol or if similar outcomes might be attainable with simpler, possibly more cost-effective technologies.

How to Own ASM?

To own ASM, you can use the services of a centralized crypto exchange. Start by creating a Gate.io account, and get it verified and funded. Then you are ready to go through the steps to buy ASM.

News on Assemble Protocol

According to what was announced on the official Assemble Protocol Medium channel, on December 22, 2023, a landmark partnership was formed with DWF Labs through a strategic investment agreement. This collaboration marks a significant milestone in leveraging blockchain technology for enhancing global loyalty points systems. The partnership secures vital funding from DWF Labs’ Web3 Ecosystem Fund for Assemble Protocol’s development and sets the stage for creating an extensive ecosystem of affiliated brands. With DWF Labs’ support, Assemble Protocol is set to expand its reach, promising a more efficient, transparent, and user-centric rewards system worldwide.

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