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Smart Contract Development For Tokenized Membership and Rewards System for Metaverse Ecosystem
Executive Summary
TokenMinds helps Project V build the smart contract foundation for its metaverse ecosystem. The system introduces an ERC-20 in-platform currency, token-gated memberships, and a rewards mechanism. All for engagement and value exchange. Each contract enables secure wallet interaction and real-time balance tracking.
Development highlights & features:
ERC-20 Currency Contract
Manages token issuance, transfers, and wallet integration for in-platform transactions.
Membership Tier Logic
Defines tier access based on token holdings and automates upgrade or downgrade actions.
Reward Distribution Contract
Records user participation and distributes ERC-20 rewards for qualified activities.
Client Overview:
Client V is a metaverse platform for global events and seminars
Industry: Metaverse / Web3 events & community platform
Client’s Objective
Add an ERC-20 currency for in-platform purchases. It must support wallet storage and seamless transactions.
Launch membership tiers tied to token amounts. Accounts should handle upgrades and downgrades correctly.
Create a rewards system for seminars and contributions. Users should see earned tokens and history.
Client’s Challenges
Unlinked payment system
The platform lacks a unified token for purchases and rewards. Fragmented payments slow user transactions and cause verification gaps.
Unclear tier validation
Membership levels depend on token amounts. Without automated checks, users can access tiers they didn’t qualify for.
Manual reward tracking
Engagement rewards are not automated. Manual distribution creates errors and missing payout records.
Limited deployment testing
Smart contracts need full pre-launch validation. Missing test stages could expose issues during mainnet deployment.
TokenMinds Solutions
Smart Contract Development
TokenMinds designs and implements smart contract layers. The contracts handle all token-based operations and ensure transparent logic on-chain. This work was divided into key components:
Unified ERC-20 Currency
Built a single token contract for all in-platform transactions. It enables wallet storage, transfers, and balance tracking directly on-chain.
Automated Tier Logic
Developed membership contracts that enforce token thresholds. Each tier upgrade or downgrade adjusts holdings and access automatically.
Reward Distribution Contract
Created reward logic to mint ERC-20 tokens based on user participation. Reward balances and histories update in real time.
Smart Contract Architecture
Project V’s contract system connects the ERC-20 currency, membership tiers, and rewards logic into one framework.
ERC-20 Core Contract
Acts as the main currency layer. Handles token supply, transfers, and balance verification for all user actions.
Membership Contract
References the ERC-20 balance to determine access level. Tier upgrades and downgrades trigger token deductions or refunds automatically.
Reward Contract
Links with the membership and ERC-20 contracts. Issues reward tokens based on user activity and stores distribution records on-chain.
Integration Flow: Frontend connects through a NestJS API to interact with each contract.
Smart Contract Workflow
Each module works independently but interacts through shared events and verified token balances.
Step 1: User action
A user joins an event or purchases access using ERC-20 tokens. The wallet interaction starts the on-chain process.
Step 2: Token validation
The ERC-20 contract checks balances and processes the transaction. Token transfers update user holdings in real time.
Step 3: Membership update
The membership contract verifies the user’s tier based on token amounts. If thresholds change, it adjusts the tier automatically.
Step 4: Reward trigger
Participation data moves to the reward contract. It issues ERC-20 tokens for qualified actions and records them on-chain.
Step 5: Display & confirmation
The NestJS API and Next.js UI show updated balances, tiers, and rewards. Users see confirmation directly after the transaction.
Before vs After Smart Contract Implementation
The introduction of smart contracts transformed Project V’s operations. Processes that were manual and fragmented became automated and transparent.
Before Implementation | After Implementation |
Purchases were handled off-chain and often fragmented. | ERC-20 currency now processes all transactions on-chain with full traceability. |
Tier validation was manual and prone to mistakes. | Smart contracts now check token balances and update membership levels instantly. |
Token rewards were issued manually with inconsistent tracking. | Contracts now mint rewards automatically and record every payout on-chain. |
Users had limited visibility over transactions. | Every action is now recorded on-chain for full verification. |
Expected Results
100% on-chain payments
Platform payments expected to move fully on-chain for verifiable records.
90% faster tier validation
Membership tiers anticipated to update automatically with minimal manual review.
95% reward accuracy
Reward distribution expected to become fully automated with fewer missed entries.
100% transaction transparency
All user actions expected to be traceable through on-chain records.
Tech Stack
Smart Contracts:
Solidity, Hardhat, Foundry, Echidna
Backend:
NestJS, MongoDB Atlas, AWS EC2
Frontend:
Next.js, Vercel
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