What is Token-Gating?
Token-Gating is a way to use blockchain technology to restrict access to exclusive content. By owning a specific NFT, token holders can unlock different experiences offered by the brand or creator. These holder benefits can vary in flavor and provide owners access to digital or physical content.
This ability to turn an NFT from a piece of art to a token that provides real world utility is what makes this technology unique and powerful.
Over the past 18 months we’ve seen 3 distinct variations of Token-Gating used during NFT Campaigns and projects.
Flavors of Token-Gating
- Unlock a webpage or communication channel
- Unlock an e-commerce transaction or discount
- Unlock access to a physical or digital event
Flavors of Token-Gating
Unlock a webpage or communication channel
Fans of brands and creators are always looking for other members of their community to connect with. While it’s simple to find fellow followers of a community on social media it’s not always easy to find a specific niche within a large community.
NFTs allow fans to connect with other collectors within their niche community. Individuals can gather to collaborate or view exclusive content that has been restricted to those who hold a specific token.
We’ve seen similar examples for online publications and news outlets where they add a paywall to a published story.
Wall Street Journal Website
Software like Unlock Protocol and apps for Discord have been used to restrict access to metaverse experiences, online communities and private communication channels. This enables NFT holders a chance to interact with members of the community who support the same niche as them. It’s like finding your tribe. Access to the community becomes an additional benefit for these token holders.
The NFT becomes the verification to unlock the webpage or Discord channel where other community members interact with one another. Brands can utilize this technology to increase engagement and brand loyalty.
Collab.Land
Unlock an e-commerce transaction or discount
Organizations love to reward their most loyal customers and employees. Many do so by providing discounted or free branded merchandise.
The problem with discounts codes and free merchandise links is that these URLs can easily be shared online and end up in the wrong hands causing loyal customers to miss out.
The solution that token gating provides here is that these creators and brands can restrict access to specific products on an e-commerce site or apply a unique discount only to those who own one of their tokens.
Coach implemented such a token gated experience with the launch of their first NFT collection. The 2021 Holiday season collection was for their 80th anniversary and featured 8 characters from Snow City, Coach’s mobile game. Read more here
NFT.Coach.com
On June 22, 2022 the 80 NFT owners from the Coach Ski collection were given the ability to redeem their token for a custom made-to-order Coach Rogue bag. The verification process for this token gated experience used the owners NFT to unlock an e-commerce website to redeem a free Rogue bag.
Coach.com
Coach.com
Unlock access to a physical or digital events
Brands often host large events ticketed by conventional means — think of your favorite sporting event or concert. Typically one purchases a ticket from a website and downloads an app to be scanned in at the gate. That ticket is the key to unlocking your access to that venue and experience.
Smaller venues like restaurants, country clubs or private parties can also be ticketed with access granted through checking IDs or names on a list.
NFTs can be utilized as a tool to unlock access to one of these physical venues or digital events like a webinar or online meetup.
Tokenproof was used at over 80 Satellite Events at NFT.NYC by NFT communities to restrict access to exclusive in-person events to members only. Individuals who owned an NFT from that community gained entry into the event by scanning a QR code that verified ownership of an eligible token.
Tokenproof.xyz
NFT holders are not just consuming content, they become active participants and ambassadors of the brand or community.
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Disclaimer: Our owners, writers, and/or guest post authors may or may not have a vested interest in any of the above projects and businesses. None of the content on this blog is investment advice nor is it a replacement for advice from a certified financial planner.
