NFT memberships give projects and businesses the opportunity to build online communities binding together their most loyal customers.
NFT-based memberships can grant holders a suite of online and real-life perks, ranging from access to exclusive events and services to voting rights and rewards. Keep reading to learn more about how non-fungible tokens transform the membership experience.
What Are NFT Memberships?
Cryptographic assets known as non-fungible tokens (NFTs) are used to represent various digital objects in a unique way. An NFT’s metadata is protected on a blockchain, guaranteeing the verifiable proof of each token’s ownership and uniqueness. Additionally, this guarantees that an NFT cannot be changed or fabricated.
Digital art, collectibles, and in-game objects are a few examples of common NFT applications. This asset type can also be used to confirm identification and ownership of physical assets (such real estate titles), tickets, and certifications.
In order to reward its patrons or supporters, well-known brands, especially sports groups, can adopt NFT-based membership schemes. When a user connects their cryptocurrency wallet to the organization’s platform and verifies they are the owner of a membership NFT, access can be provided to them. With these tokens, a variety of online and offline benefits, including admission to special events and services, can be unlocked.
How Are NFT Memberships Being Used
Similar to conventional membership models, NFT-based memberships can provide holders with a variety of benefits and be used to link organizations with their communities in order to foster closer links.
Owners of NFTs from the Bored Ape Yacht Club (BAYC) can, for instance, gain entry to private clubs within the community and gain first dibs on new NFT drops and improvements.
The only way to access and view the cartoon series Stoner Cats, which Mila Kunis co-created, is to sign up for an NFT membership. You must purchase the show’s token and prove the validity of your purchase in order to access the gated content and other special privileges.
NFT Membership Benefits
On top of offering NFT holders exclusive perks, NFT memberships can potentially disrupt the traditional membership system by solving its inefficiencies.
Creating a seamless user experience
The sign-in or verification procedure can be greatly streamlined with NFT-based memberships. To enjoy the benefits to which you are entitled, all you need to do is make sure you have the appropriate NFT in your wallet before connecting it to the organization’s platform.
Additional income opportunities
Traditional memberships rarely increase in value over time because most users continue to receive the same advantages. After a while, some businesses can even opt to eliminate particular privileges. It need not be this way with NFT subscriptions.
NFTs, including membership NFTs, can pay on-going royalties to their inventors with the aid of smart contracts. A portion of the sale price of the NFT may also be given to the creator if the token’s owner chooses to sell it on a secondary market. Additionally, certain membership tokens offer NFT airdrops as one of their benefits, giving owners the chance to sell the NFTs that were given away.
Minimizing the chances of loss or forgery
Traditional membership cards have a number of drawbacks, including the ease with which they can be stolen or falsified, allowing others not entitled to the privileges to take advantage of them. However, because NFTs are kept on a blockchain, counterfeiting is now all but impossible. On the blockchain, anyone can verify the NFT’s legitimacy and look up its ownership history.
Users no longer have to worry about losing their physical cards because NFTs are stored in a digital wallet.
Limitations of NFT Memberships
Even though NFT memberships have a lot of advantages, for the majority of people, obtaining a standard membership is still far quicker and simpler. Lack of knowledge and abilities to use the technology is one of the biggest obstacles to acceptance, as it is with many Web3 developments. The number of companies who provide NFT memberships is still fairly small for the same reason.
