Because of the web2 nature of most of these products the points will begin on a web2 platform but will all data stored in a IPFS backend hosted by Lost Labs. Currently the backend is not pinned to the global IPFS network, but as the solution becomes more stable and defined we will work to release it to the wider IPFS network. The goal of this backend is to form a Digital Identity that can be used by other projects and serve as a home for all your points, badges and preferences (think dark mode) across the NFT sector.
We've done a great amount of Research about the possibilities of Soul Bound Tokens, Badges etc. and through that research we've got a good sense of what needs to be done to make these tokens a reality. Therefore, CUTE points are our first building block into this sector. Soul Bound Tokens require a few things to work: Consent among participants, knowledge of the agreement and transparency into the parties. With the current design of the CUTE points we decided to begin with creating an Issuer of the tokens - to understand how we can design a trusted system that marries the web2 and web3 world. We've done some prelimiary work with EIP-4337 with think has a good shot at achieving the desired goals of Soul Bound Tokens.
CUTE points are issued by the Nftyswap team and are up to the discreation of the team. If there is misuse or abuse of the system, Nftyswap reserves the right to remove accounts and/or points.