SUBWAY Tokenization; Case Study Analysis


Twelve Moderator Matrix (XIIMM) Publication
April 13th, 2021


Authored by Scott L. Ornelas a.k.a. Jatslo.   Edited by Anonymous.
Subway MyWay(R) Rewards


          The loyalty program presented by Subway® is a marketing strategy designed to encourage consumers to continue to subscribe to goods and/or services.  The consumer typically receives incentives, such as: coupons, points, rebates…etc.  Some of those incentives can be used as discounts on future purchases.  The problem with this strategy is that it is very quickly becoming outdated, and rapidly being replaced with a similar; more universally accepted strategy known as tokenization.

          Tokenization has evolved at a breakneck pace to include the tokenization of assets.  The tokenization of assets has evolved well beyond infancy, in fact.  Subway® is not referring to tokenization in the sense that they are issuing a blockchain token, but they should be.  The issuance of a blockchain token is much greater than simply a improved security.  The issuance of a blockchain token is a wealth generator for not just Subway®, but for anyone who might receive fractional incentives.  As the Subway® token appreciates in value, the cost of goods and/or services becomes more competitive.

          The Subway® token could digitally represent the company while a coin might represent the parent company, for instance.  These security coins and/or tokens can also be traded on secondary markets.  It is not enough to simply say, “Yes, we accept Bitcoin.”  Having cryptocurrency pairs only strengthens your position; pairings with Bitcoin, Ethereum, DeFi…etc.  This is not a matter of “IF” Subway® will include the tokenization of its assets; it is a matter of “WHEN.”  To continue to remain competitive in this 21st-century, Subway® will be forced to tokenize its asset(s) along with the competition.


          This is the XIIMM collective; a byproduct of collaboration.  The collaborators were a scientific peoples at first, and now collaborators are mostly people who buy, sell and/or trade, e.g., stocks, funds, forex, coins, tokens…etc.  There is a whole army waiting to trade tokenized assets, in fact.  The XIIMM was founded in 2007.  The most important issue facing both of our organizations is customer retention, because without them we are truly lost.  Offering incentives in the traditional sense is no longer an option.  The tokenization of assets is the only way to compete in this quickly evolving world that we all share.

          ERC-20 tokens, for example, are tokens utilized on the Ethereum platform.  They can be shared, they can be paired with other digital assets to simplify exchange, and/or they can be transferred to a digital wallet.  Ethereum, on the other hand, is the second largest digital asset by market capitalization, with Bitcoin being the forerunner.  Ethereum is the most utilized blockchain, and is certainly capable of dethroning Bitcoin.  There are quite a lot of other digital assets that have morphed into something that includes bits and pieces of the best parts of their predecessors.


          Subway® can continue down the same road that has made it the powerhouse that it is today; a road that has had some serious bumps along the way.  Providing superior goods and services, and the best consumer experience has served Subway® well for a great many years.  Subway® can have a “Don’t fix it, if it ain’t broke” mentality right up until something breaks.  The world, as we know it, is undergoing change; a great many changes, in fact.  Organizations that embrace change and adapt to that inevitable change are the ones that stay in business the longest.

          Subway® can not sustain itself, if it does not embrace and adapt to the changing world.  Your competitors are looking to get the competitive edge, and some may already have that edge.  Just to name a few:  McDonald’s®, Burger King®, KFC®, Jimmy John’s®, Quiznos®, Dominos Pizza®, Pizza Hut®, Dunkin’ Donuts®; any one of them could adopt blockchain that includes a digital asset.  A digital asset; especially one that appreciates in value, will enable your competitors to slash prices.  They will additionally offer incentives to their customers.  Subway® on the other hand can be a pioneer by being the first to adopt blockchain as fact, and embrace with open arms all that it can offer.

          We would love to see Subway® in the future; many collaborators here are customers; that includes myself.  The tokenization of assets by and through blockchain is what will sustain Subway® into the future.  In fact, many of the Subway® competitors who do not adopt the same changes that we are recommending will undoubtedly go out of business.  It would take something truly biblical to knock out some of these larger competitors.  The emergence of blockchain, and the power of its digital currencies are exactly that:  Biblical.  We have not seen anything comparable since the “Dot-com Boom” that spanned the late 90’s.

Proposed Solution

          Hire and/or contract a developer.  Blockchains are a digital record or digital ledger that is often associated with cryptocurrencies.  Blockchain can also record transactions with other cryptocurrencies, other data, and/or other information.  This is unlike other forms of finance.  Cryptocurrencies that rely on blockchain are decentralized, so people have access without the need of a bank.  Cryptographers are developing even more ways to utilize blockchain. Even as we speak, the technology is evolving at a breakneck pace affecting every digital aspect that can be imagined.

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