Your cryptocurrency wallet isn't just about security anymore. It's moving beyond storage to offer rewards for holding, spending, and learning. In the next sections, you will discover how these programs work and why they’re so effective at building loyalty.
Today, holders of many wallets benefit from rewards programs. What was once mere crypto storage is now an opportunity to earn interest on your savings, get cashback on coffee, or receive free crypto for learning. This shift in functionality highlights the growing role rewards programs play in building strong user loyalty and changing how people interact with digital money.
The major Wall Street institution, Morgan Stanley, filed to launch a Spot Ethereum ETF that includes staking. They want to offer their wealthy clients a stock-like fund that tracks Ethereum’s price, but also automatically stakes the fund’s ETH to earn rewards and boost returns. It indicates that the staking reward mechanism, which is a cornerstone of crypto wallet programs, is now being sold by traditional finance to its clients. This trend legitimizes the underlying value proposition of earning yield on crypto assets.
In this article, we, together with our development experts, focus on the main rewards programs in crypto wallets. We break down how they work, why they’re so effective, and what the future holds for earning within your wallet. Besides, we figure out why reward programs are a critical strategy for user acquisition, retention, and ecosystem growth.
The toolkit of wallet rewards
There are several types of crypto wallet rewards that allow holders to earn additional money for certain activities.
Staking
Owners of crypto wallets that support staking may lock (“stake”) their assets or cryptocurrency and earn passive interest. By staking, they contribute their crypto to the network’s validation process, help to verify transactions, and maintain security. The amount of the reward depends on the network, period of staking, and the sum. Major staking networks include Ethereum, Cardano, Polkadot, and Solana.
DeFi lending
Users who are not afraid of higher potential risks with higher profits may lend part of their cryptocurrency through DeFi applications. DeFi can provide transparent peer-to-peer lending with potentially higher returns than traditional financial offerings. Investors who decide to lend their assets receive rewards for doing so. Crypto wallets that are compatible with DeFi applications support this functionality. For example, with Coinbase Wallet, you can experiment with lending some of your cryptocurrency through DeFi protocols, such as Compound or Aave.
Cashback
Users of crypto wallets receive rewards for their everyday spending. They make purchases with their cards and earn crypto (BTC, native tokens). The system connects a crypto wallet with Visa or Mastercard. Your cryptocurrency is converted into local currency, and you receive the percentage back in crypto. The amount of the cashback depends on the provider of the wallet. Other conditions (frequency of fees, ATM compatibility, etc.) also vary.
Activity-based rewards
Another way to earn crypto rewards is through specific in-app actions such as swaps, referrals, and educational quests. Wallets may also offer opportunities to earn cryptocurrency for completing educational content or participating in promotions.
| Reward type | Primary user incentive | Example in action |
| Staking | Earn passive income (APY) on idle assets. | Staking ETH to help run Ethereum and earning rewards. |
| DeFi lending | Generate higher yield, often on stablecoins. | Supplying USDC to a lending pool to earn variable interest. |
| Cashback | Earn crypto on real-world spending, seamless entry. | Getting 2% back in Bitcoin for paying with a crypto card. |
| Activity-based | Earn tokens for engagement and learning. | Earning points on MetaMask for swaps, or free crypto on Coinbase for quizzes. |
Why are these programs so effective?
The emergence of crypto assets has changed the way people interact with financial value. Loyalty and reward systems allow cryptocurrency to move beyond its role as an alternative currency. Crypto rewards offer the following benefits:
Behavioral economics and habit formation
Reward programs integrate smoothly into users’ daily financial routines (checking balances, spending, and swapping tokens). The low effort required to earn incremental rewards helps form strong habitual engagement. Members observe the value of their incentives increase and get motivated to consistently participate in various engagement initiatives.
Power of passive income
Crypto incentives are distributed as digital tokens. These tokens tend to gain value over the years, allowing participants to engage directly with the expanding digital asset ecosystem. Wallet holders accumulate digital rewards in the form of passive income.
Low entry barriers
Initiatives like “learn-and-earn” allow users to acquire crypto risk-free while educating them about new projects. This gentle onboarding removes the intimidation of buying crypto and turns curiosity into ownership and engagement.
Viral growth
Referral programs increase user acquisition. Members can earn incentives in a variety of cryptocurrencies. This creates opportunities for participants to broaden their digital holdings, engage with multiple blockchain networks, and investigate the prospects of newer digital assets. Besides, users may choose reward programs that match their financial approach or individual interests. This builds personalization and stronger user involvement and commitment, as they tailor incentives to their specific objectives.
Ecosystem lock-in
Strategic use of native tokens that are usable for fees, upgrades, or exclusive benefits increases their utility and creates circular demand. This motivates users to hold, spend, and earn within the ecosystem. They become more connected to the platform and align their success with its growth.
Global accessibility
Crypto rewards can be accessed and utilized globally without constraints. People from all over the world may participate. Reward programs create a universal exchange with versatile reward redemption. Participants can apply their crypto earnings toward diverse products and services, exchange them for other digital currencies, or retain them as investments.
| Psychological principle | How it works | Business outcome |
| Habit formation | Rewards are integrated into routine actions (spending, checking balance). | Creates daily active users and habitual engagement. |
| Passive income | “Set it and forget it” earning through staking or lending incentivizes holding. | Reduces user churn and capital flight. |
| Lowered barrier to entry | Programs like “Learn & Earn” offer risk-free, educational crypto acquisition. | Attracts curious newcomers who might otherwise be intimidated. |
| Viral network effects | Generous referral bonuses reward users for bringing in their friends. | Drives low-cost, high-trust user acquisition. |
| Ecosystem lock-In | Rewards are often paid in the wallet/platform’s native token, which can be used for premium features. | Increases utility and demand for the native token, building a moat. |
Real-world implementations
Crypto.com
The Crypto.com Rewards Hub (previously called Missions) was introduced in 2021. Users interact with various features within the Crypto.com App, such as activating security measures, executing trades, and finishing educational modules.
Coinbase
Coinbase provides an educational incentive program called “Learn and Earn.” Participants can view brief educational content about certain cryptocurrency initiatives and then complete a simple assessment to receive a reward in that digital asset. The arrangement benefits both sides, Coinbase provides complimentary rewards to its community, and the projects become known to a broader user base. The rewards are generally modest (between $3 and $5), but they represent an effortless method for users to acquire digital tokens at no cost.
MetaMask
MetaMask has piloted points-based systems where users get points for swaps and in-wallet activities. The scores and progress are reflected in the dashboards of the MetaMask mobile app and extension. These points have been convertible to future airdrops or perks.
Lolli
In 2018, Lolli was a pioneering firm in the Bitcoin rewards space. It is a platform and browser extension that provides Bitcoin cashback when users shop online. Partnering merchants share a commission with Lolli, which is then paid out to customers as Bitcoin. Users accumulate BTC without engaging in trading or mining. Many appreciate Lolli as an alternative to direct exchange purchases. The platform typically doesn’t require identity verification to earn rewards, making entry easier for those who prefer a streamlined signup process.
Starbucks Odyssey
It was a Web3 experiment in which the company tried to look at building brand loyalty from a different angle. Participants performed tasks and received NFTs (“Journey stamps”) that could be further sold or kept. The project was built on the Polygon blockchain. Though the engagement faded and Starbucks announced its shutdown in March 2024, the program served as a significant proof-of-concept, demonstrating how tokenized rewards can deepen brand engagement and create new economic layers for customer loyalty.
| Platform/Program | What makes it successful | Key metric/Outcome |
| Crypto.com | Creates a powerful status & utility loop. The more you stake, the better your card perks. | Millions of cards issued; drives massive CRO token utility. |
| Coinbase “Learn & Earn” | Brilliantly lowers onboarding friction. Users learn about an asset and own it instantly. | Major driver of user education and new asset discovery. |
| MetaMask points | Incentivizes using the wallet’s own swap feature, capturing fees and data. | Increases transaction volume and user retention inside the wallet. |
| Lolli / Starbucks Odyssey | Bridges crypto rewards with mainstream commerce, making crypto feel normal and useful. | Drives brand loyalty and introduces traditional consumers to Web3. |
The ROI timeline for reward programs
A crypto wallet rewards program’s ROI follows a clear timeline that can be divided into three phases.
- In the short-term (3-6 months), the main goal is to achieve a direct boost in user engagement (surges in daily active users, completion of “learn-and-earn” modules, and initial referral-driven growth).
- In the medium-term (6-12 months), increased retention transforms into a higher customer lifetime value as users habitually use the wallet for staking, swaps, and spending.
- Finally, the long-term (1+ years) payoff demonstrates reduced customer acquisition costs and churn due to a loyal user base. The rewards paid in a platform’s native token create a powerful, self-reinforcing economic loop that drives utility and demand.
| Timeframe | Primary goals & user behaviors | KPIs | Long-term foundation |
| Short-term (3-6 months) | Boost initial engagement and education. Users try features, complete quests, and tell friends. | Daily active users, referral rate, quest completion rate | Establishes initial habit loops and user data. |
| Medium-term (6-12 months) | Increase asset retention and spending. Users hold more assets for staking, use cards regularly. | Total value locked in staking, card spending volume, customer lifetime value | Builds a sticky, financially engaged user base. |
| Long-term (1+ years) | Achieve sustainable growth and ecosystem strength. Loyal users are costly to replace, and native token demand is organic. | Reduced customer acquisition cost, lower user churn rate, native token utility & velocity | Creates a defensible, growing financial ecosystem. |
Rewards as an ecosystem engine
Approximately $146 billion in staked ETH is a testament to the massive scale of the passive income incentive model that wallet programs help facilitate. That means implementing rewards programs in crypto wallets is a working approach to building loyal audiences. The future of crypto wallet rewards lies in a fully integrated loyalty ecosystem. Imagine a program that seamlessly combines the most effective mechanisms into a single, tiered user journey:
- Staking as the foundation: Users lock assets to earn a base APY, securing their status as high-value holders and unlocking higher reward tiers.
- Spend-to-amplify: Every purchase with a linked card earns cashback, but the rate is boosted based on the user’s staking tier.
- Engagement loops: Educational quests about new DeFi protocols or features grant token rewards and deepen product adoption.
- Viral growth engine: Referral bonuses are supercharged, rewarding both the referrer and the referee with benefits from the unified points pool.
Critically, all these activities feed into a single, unified loyalty points system. These points form a key to the ecosystem, where users benefit from premium services like reduced trading fees, exclusive NFT access, governance voting power, or even real-world partner perks. This model moves beyond isolated rewards, creating a powerful ‘virtuous cycle’ where every user action reinforces loyalty, utility, and network growth.
This “ideal” rewards program seamlessly blends multiple reward types and therefore requires a foundational layer that can privately connect disparate systems. It is not enough to simply know how to build a crypto wallet. Technologies like the Canton Network and DAML smart contract language become essential.
Canton.Network wallet development services allow developers to create a network of networks with guaranteed privacy and atomic settlement across institutions. DAML’s focus on rights and obligations is perfect for encoding complex reward rules. Imagine a wallet where your staking rewards from a DeFi protocol, your cashback from a coffee purchase, and your airline miles from a travel partner are all tracked and settled instantaneously on a shared, private ledger built with DAML on Canton. This isn’t science fiction, it’s the logical result of the frictionless, programmable loyalty in Web3, which solves the siloed data and settlement delay problems that plague today’s programs. Our blog post Canton.Network Explained describes the potential of the network in combating current DeFi challenges.
Conclusion
To sum up, our main idea was that crypto wallets have successfully evolved from simple key holders into dynamic platforms for engagement and growth. The reward programs that we discussed in this article, such as staking, spending, and learning, manage to create powerful habits, build loyal communities, and lock users into thriving financial ecosystems. As we see it in PixelPlex, the programs will mature, and those companies offering the most seamless and valuable rewards will receive the most users.
The future points toward fully integrated systems where every financial action, from securing a network to buying a latte, contributes to a unified and personal financial journey. The wallet is becoming the central command center for the entire Web3 financial life. If you are ready to step into this approaching future, we will be happy to assist you – just contact us.
