NFT-based memberships offer a unique opportunity for independent creators and content producers to build sustainable businesses. By using NFTs to manage access to exclusive content, assets, or events, companies can build customer loyalty and open new revenue streams.
In this post, we'll explore how NFT-based memberships work, the benefits they offer today’s businesses, and some of the challenges they present. For businesses looking to start a membership program, this should give you a few ideas that may help bring your vision to life.
We know that an NFT is an asset represented as a digital token on a distributed ledger. These tokens are unique, traceable, and trackable, and might grow in value based on scarcity or demand. In other articles we talked about how they can be soul-bound, dynamic, and even fractionalized, meaning that fractions of them can be bought by a group. The idea behind NFT-based memberships is that we can take this value, the uniqueness and ownership the technology allows, and mint assets to represent membership in a club or community, much like a ticket or passcode gets you into an exclusive room.
NFT are fun rewards, often taking the form of a piece of art or exclusive video, so there is value in owning them and some cachet for users who want to get a unique perk. Using them to track and reward membership makes a lot of sense. But they also might solve a lot of inefficiencies in membership systems and better track engagement.
NFT-based memberships could eliminate paper-based memberships, or the idea of traditional membership cards, as all one would have to do to enter a club, site, or company is present a digital wallet that has the required NFT in it. The inviting organization could eliminate any paper systems or existing back office systems that verify identity, as identity would be attached to the NFT.
NFT memberships can create real value for businesses and customers. Companies can charge upfront for inclusion and add micro-fees, or pay-as-you-use pricing, all tracked via smart contract. For membership holders, the actual membership may go up in value as well. Say space becomes limited, a membership holder could sell their space for more than they initially paid to join.
Password sharing, false identities, there are all types of ways to bypass membership fees and get into places you’re not allowed to be—especially on the internet. Rather than relying on physical cards, passcodes, or documents, NFTs allow members to store digital and securely encrypted tokens which can be authenticated effortlessly. The permanent, tamperproof records allow for increased transparency and authenticity verification in the membership process.
An NFT-based membership offers an exciting new way to grant exclusive access to digital content and experiences. As we think about ideas to put these into action, let’s brainstorm some ideas across industries:
When it comes to NFT memberships, like many NFT use cases, initial use cases may skew playful and collectible, and then evolve into something more functional.
Flyfish Club became the first private dining club where membership is purchased via an NFT, creating exclusivity and a new, interesting way to take reservations.
Surely these use cases, fun, interesting, and newsworthy, will inspire other more functional membership programs that replace the dated systems we consumers interact with on a daily basis.
Creating an NFT-based membership program can be a great way to reward customers and fans who appreciate your product or brand. The idea behind it is simple: create custom tokens on a blockchain network, assign them to users based on their level of loyalty, and provide exclusive benefits.
To get started, initiate the process of designing your network and tokens. You'll want to make sure to include functionality and design that reflects your brand while also providing customers with an asset they can proudly display. An NFT platform like ours makes it easy to mint your own NFTs. (You can read this how to mint an NFT guide to see how the platform works.)
Next, you'll use blocktrain to track how many are out in the wild and where they may have ended up.
Finally, you can define membership tiers and allocate specific benefits by tier. By doing so, you will have established an NFT-based membership program that provides loyal customers with exclusive rewards for showing you support.
NFTs have the potential to revolutionize how we interact with the digital world, and membership is just one area where they can be used. By using an NFT as your membership token, you can provide enhanced security, flexibility, and convenience for your members. If you want some help designing an NFT-based membership program, our team is here to help. Our NFT platform makes it easier than ever for businesses to create NFTs at scale, gas free. If you're interested in learning more, start with this tutorial on how to mint an NFT using the Kaleido platform.
Kaleido is your easy button for developing next era blockchain based business applications.