Question about Channel Points rewards and external community rewards

Hi,

I’m working on a community tool for Twitch streamers and I wanted to ask about what is allowed with Channel Points custom rewards.

The idea is that a streamer could have an external community hub where viewers can collect cards, unlock badges, complete missions, trigger OBS overlays, etc.

There would be no real money involved, no cash-out, no marketplace, no resale, no crypto, no gambling, and no financial value. Everything would just be cosmetic/community features for that streamer’s community.

The first thing I wanted to know is if this flow is allowed:

Viewer redeems a Channel Points custom reward on Twitch
Our backend receives the redemption with EventSub
The external hub gives the viewer a specific reward, like opening a pack, unlocking a cosmetic card, triggering an overlay, unlocking a mission, or receiving a badge

I also wanted to ask about a second version:

Viewer redeems a Channel Points reward
The external hub gives them a small amount of virtual community tokens
Those tokens can only be used inside that streamer’s hub for cosmetic/community actions
They cannot be bought, sold, traded, transferred, cashed out, or exchanged for anything with real-world value

Would that second model be considered against the Channel Points rules because it looks like converting Channel Points into an external virtual currency?

I’m trying to understand the safest way to build this before going further. Thanks.

Please refer to the Channel Points Acceptable Use Policy or consult a legal professional

Third party developers forum deals with building things not really giving opinions on the legal side

  • Do not create Points redemption opportunities for tobacco, alcohol, pharmaceutical products, imitation currency, infant food and formula, bank operations, or fuel.
  • Do not sell, offer to sell, trade, barter, or transfer Points to other users of Twitch in exchange for Bits or in exchange for real or virtual currencies inside or outside the Twitch Services. Any attempted prohibited sale or transfer will be null and void.

imo yes