The team at Ripple has announced a new accelerator program for commercial and enterprise companies that are joining RippleNet. Funded by $300 Million in XRP from Ripple’s holdings, the rewards will be processed via volume rebates and an adoption marketing incentive.
One of the most interesting concepts of this accelerator program is the volume rebates. The Volume Rebate provides license and integration-fee rebates to RippleNet members once they’ve reached integration and volume milestones by certain deadlines. Depending on the volume processed, these rebates can cover anywhere between 50 to 300 percent of the integration fees and first year’s license fees.
The volume rebate will be available in XRP or USD and is meant to accelerate the adoption and usage of Ripple solutions. The team at Ripple has explained that selling restrictions will apply to customers willing to receive XRP for the rebate. This restriction is actually a positive thing because it’ll prevent the market numbers from going wild.
Ripple is sort of copying PayPal (with their early days adoption and referral bonuses), implementing incentives to accelerate network effects on RippleNet. This is a referral method to attract more users onto the platform.
Since Ripple is offering the incentives in XRP, the company anticipate seeing an added benefit of building an easy on-ramp for institutions to use XRP in their payment flows to lower liquidity cost in the future.
Early reception of these XRP incentives in a test phase has been very positive according to Ripple themselves.
For the adoption marketing incentive, the program will match the marketing costs for eligible customers who promote Ripple solutions to their customers. Ripple will support the marketing efforts with tailored marketing content, messaging frameworks and tools in a bid to reduce their customer’s total costs. The incentive will be available on a first-come, first-served basis. It can be earned through XRP or USD. In the case of the former, similar selling restrictions will apply to support healthy XRP markets.
Again, this is quite similar to the referral programs that other payment solutions have offered in the past. Paypal was really well known for this in their early days and it was a big attribution to their early stage growth.
Ripple also isn’t the only one coming up with an accelerator program to boost their eco-system. There’s been many other companies in the blockchain space such as TRON and EOS stepping up their game to foster more talented companies.