Decisions · Layer 1
Should you set a minimum redemption threshold
Set a minimum only when small redemptions create material fulfilment or fraud cost, and provide a credible path to reach it. A threshold that strands balances damages trust.
Set a minimum only when small redemptions create material fulfilment or fraud cost, and provide a credible path to reach it. A threshold that strands balances damages trust.
## The decision boundary A minimum redemption threshold controls the smallest balance or order a member can use. It needs a stated cost reason, a visible accumulation path, and an exception process.
## The options
### No threshold Choose this when digital fulfilment and low-value redemption are inexpensive. The cost is additional operating complexity.
### Balance threshold Choose this when fulfilment cost is tied to amount redeemed. The cost is more measurement and exception handling.
### Order threshold Choose this when shipping or handling is tied to an order. The cost is a stronger funding and review obligation.
## What it costs you The currency is liability, margin, engineering time, operating capacity, or member trust. In a hypothetical illustration, 2 points per dollar on 400 dollars of spend creates 800 points. At a hypothetical 1 cent value, that is 8 dollars of liability. Ten comparable cases therefore represent 80 dollars of stated value.
## How to decide 1. Name the behaviour or obligation the rule must control. 2. Identify the independent evidence that proves the event. 3. Price the member, operating, and liability cost of each option. 4. Choose the least complex control that protects the least reversible outcome. 5. Set the evidence that would cause a later review.
## What breaks The failure mode is a rule that measures its own success. Keep source evidence, eligibility, issuance, adjustment, and fulfilment separately observable. Revisit the recommendation when the balance has no meaningful value or the event cannot be independently verified.