A system and method for adapting the behavior of an interactive presence based application on a mobile computing device associated with a user; comprising: providing a plurality of multifunctional beacons; wherein the plurality of beacons provide a mesh wireless network; wherein each of the plurality of beacons provides a local wireless connection; providing an OMS backend for management of the plurality of beacons; wherein the OMS backend runs on a server; connecting by the mobile device to one or both of the mesh network and a local network; wherein the plurality of beacons report the connecting to the OMS backend; determining by the OMS backend the proximity of the mobile device to one or more of the plurality of beacons based on the reported connections; and adapting the behavior of the application and/or the beacons based on the determined proximity.