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Loyalty discount is a life time discount, that depends on sum of all orders! Discount is increasing when new checkpoint is reached.
Let's say, that you have 3 orders, total sum for those orders is $22, so, for your next order you will receive -1% loyalty discount, until you reach total sum of $40, then your discount will increase by 1%. So more you spent, bigger discount you get.
Discount increases by 1% after each $20 are spent, like this: