NFTs have been witnessing quite the resurgence this year. Especially when one considers the crypto winter, NFTs have managed to not just survive the ordeal, but thrive despite it. NFT gaming marketplaces, for instance, are still very much being used to earn passive income. Brands, too, are looking to the decentralized Web3 and the immersive experience it offers to promote their products and services.
And a huge part of what’s making these NFT and Web3 projects tick is the community experience they offer. NFT projects often catapult to popularity primarily because of their community engagement on forums like Discord and Twitter. With this in mind, we have arrived at a new innovation - token gating. What is it? Read on to know more.
What is Token Gating?
Token gating is a strategy used by NFT projects to offer certain benefits and perks to NFT holders. One way to do this is by creating a token gated Discord channel, for instance, that is open only to NFT holders and can give them access to physical assets, merch, event passes, and more!
Another application that is being explored by Spotify is the concept of a “token-gated playlist.” Holders of the genesis Creepz NFTs will get access to a specially curated playlist. When the user clicks on the playlist, they are redirected to their wallet. Once it has been connected, the NFT holders can simply access the playlist using a unique link. This can create an element of exclusivity which is highly valued by buyers. Token gating also gives creators more control over the distribution of their work.
NFTs have more benefits than meets the eye. With brands like Spotify jumping on the bandwagon, they pave the way for the mainstream adoption of this tech. And token gating, being a user-centric experience, has the potential to bring in more users into the NFT space.