Abstract: As the application of blockchain technology in supply chain management continues to expand, its effective implementation within closed-loop supply chains (CLSCs) has emerged as a critical research topic. This paper addresses the challenge of optimizing blockchain adoption in CLSCs by integrating a discount factor for recycled quantities and considering consumer preferences for the traceability of remanufactured products supported by blockchain. The study constructs a CLSC system involving both a manufacturer and a retailer and examines four distinct blockchain implementation strategies: no blockchain adoption, manufacturer-only adoption, retailer-only adoption, and full-chain adoption. Using a Stackelberg game model, the paper conducts an in-depth analysis of key variables across these scenarios, including optimal pricing, blockchain traceability levels, recycling rates, market demand, member profits, and social welfare. The findings reveal that when the blockchain implementation cost borne by the manufacturer is moderate, the retailer's independent adoption of blockchain technology proves to be the most advantageous strategy. This not only enhances the profits of both manufacturers and retailers but also improves the overall operational efficiency of the supply chain. Moreover, in scenarios where both the manufacturer and retailer jointly implement blockchain technology, the study underscores the importance of a well-structured cost-sharing strategy to maximize overall supply chain profits. Additionally, the analysis shows that consumer preferences for product traceability significantly influence the performance of the supply chain. Leveraging these preferences can further increase market demand and enhance supply chain benefits. This research provides crucial decision-making support for enterprises in determining the most effective blockchain implementation strategy within CLSCs and offers practical recommendations for optimizing supply chain management. The study's findings hold substantial academic value and practical significance, contributing to the broader understanding of blockchain’s role in modern supply chain systems.

Key words: closed-loop supply chain, blockchain, traceability preference, recycling discount