Cashback refers to a practice that grants a partial refund to a user who uses a service or buys a good. A percentage of the expenditure is remitted to the consumer and returned to their account. In recent years, websites have become popular on the Internet where the user – after registering – receives cashback from a group of e-commerce companies. By exploiting a system of referrals and affiliations, the member then receives cashback by bank transfer or credit.
In crypto, the cashback mechanism is sometimes used to incentivise loyalty to a service or tokenomics