Kadoos Abzar Tests ckBTC as the Checkout for Merchant Loyalty

Kadoos Abzar is proposing a simple bridge between physical commerce and the Internet Computer: merchants contribute part of their revenue to a monthly reward pool, and customers receive the proceeds in ckBTC.

The project emerged from the earlier COE experiment, according to a September 15 post on the Internet Computer Developer Forum. Its stated distribution model starts offline. A customer scans a QR code in a participating store, completes a short onboarding tutorial, creates a Plug Wallet, and begins earning rewards. The design makes the wallet—not a trading interface—the first contact with ICP.

That is the more interesting Chain Fusion angle. ICP’s official documentation describes ckBTC as an ICP asset backed one-to-one by bitcoin, with minting and redemption handled through canisters rather than a third-party custodian. Transfers occur on the ICP ledger and can settle in seconds with low fees, while the ckBTC minter manages conversion to and from Bitcoin. Those properties make small, recurring rewards more plausible than paying every loyalty transaction directly on Bitcoin.

Kadoos Abzar says it had three active physical merchants and 19 active user wallets in its second month of live operations. The project presents those numbers as an early test of grassroots acquisition, with a 12–24 month goal of collecting transaction data and expanding its user base before considering governance and other economic mechanisms.

The scale is still an experiment, not evidence of product-market fit. The forum post does not identify the merchants, publish reward amounts, link transaction records, or provide an independent measurement of wallet activity. It also describes the platform as production-ready and says its front end and integration were built with Caffeine AI, but the cited material does not independently validate those claims. Readers should therefore treat the traction figures and implementation details as project-reported information.

For builders, the lesson is about reducing onboarding friction. A loyalty program can give users a reason to hold and receive ckBTC before they understand Chain Fusion’s underlying architecture. The hard questions now are operational: how merchants fund and reconcile rewards, how users recover wallets, how payments and accounting are audited, and whether recurring distributions remain economical as participation grows.

Kadoos Abzar’s next milestone is not a new token mechanism. It is proving that a Bitcoin-backed ICP asset can survive the ordinary demands of local retail: repeat visits, small balances, clear incentives, and trustworthy records.