Are you tired of NFTs that just sit in your digital wallet, doing little more than collecting virtual dust? We sure are - which is why we’re all about giving utility to NFTs: unlocking their full potential and giving them real-world value. And we believe that token gating is a huge step forward in this ambition - building on the idea that, to stick around, NFTs gotta be useful.
NFT Token gating is a feature that allows creators to offer gated content or experiences that can only be accessed by token holders. By token gating their content or experience, creators can create a sense of exclusivity for holders, rewarding them for their support and providing them with unique benefits not available to the general public. It’s great news for creators, and great news for communities.
In this blog, we'll take you on a deep dive into token gating, including its definition, how it works and its (plenty of) benefits. We'll also share some great examples of token gating experiences that have been created on Tropee, as well as the best tools and marketing strategies for token gating.
So strap in, get ready, and let's explore the exciting world of token gating together.
So, what is token gating exactly?
An easy one to start us off.
Token gating is about unlocking access to exclusive experiences, content, goods and services through the power of NFTs and smart contracts. It's about taking the value of NFTs to the next level, and providing a new and innovative way of accessing digital or physical experiences.
Let's say you're a fashion brand looking to offer exclusive access to your latest collection or runway show. With token gating, you can create a limited number of NFTs that grant access to these exclusive experiences. By token gating your content or experience, only those with the NFTs can access the exclusive content or experience, creating a sense of exclusivity and reward for your most loyal customers and collectors. Good stuff.
How does token gating work?
Overview of securing NFT content access
Token gating works by requiring token holders to prove ownership of their NFTs through a verification system. Once their ownership is validated, they can access the gated content or experience. The verification system can be integrated with the wallet used to hold the NFT, ensuring a secure and streamlined process.
In more technical terms, token gating works by using a smart contract on the blockchain to verify ownership of the NFT. The smart contract can be programmed to require specific tokens to access gated content or experiences. When a token holder tries to access the gated content or experience, the smart contract will check if they own the required token. If they do, they can access the content or experience. If they don't, they will be denied access. Sorry (not sorry).
The private key verification for your NFT security
To prove ownership of the token, token holders must sign a message with the wallet holding their NFTs and prove their ownership thanks to the private key associated with it. This message can then be verified by the smart contract to confirm ownership. The verification system can be integrated with the wallet used to hold the NFT, allowing for a secure and streamlined process. This ensures that only legitimate token holders can access the gated content or experience, providing a sense of exclusivity for token holders and ensuring the safety of their digital assets. It’s safe, it’s easy and it’s pretty darn compelling.
Why do NFT creators use token gating?
So now you’ve understood how to do it, why should you get involved? Plenty of reasons, including:
- Safety: Token gating provides a secure method of verification that ensures only token holders can benefit from an NFT. This prevents the fabrication of token ownership, ensuring that only legitimate token holders can access gated content or experiences.
- Exclusivity: Let's say you have a 10K NFT collection, you can now token gate exclusive experiences for only 100 holders. This preserves a perception of exclusivity for members. This, in turn, drives up secondary market prices. Great news for all.
- Rewarding holders: NFT Token gating offers creators the ability to reward token holders for their support. By providing gated content or experiences, token holders receive special perks and benefits not available to the general public.
- Monetization opportunities: It’s simple stuff - selling product, opening a e-commerce website and selling contents thanks to token gating can improve revenues.
Examples of NFT token gating
We have tonnes of examples of token gated experiences created on Tropee, which are delivering huge benefits to creators and communities alike. Let’s take a look:
Kicking us off is a recent campaign from Lacoste, the iconic French fashion brand, which partnered with Tropee to create an exclusive token gating experience for their customers. The experience was centered around an in-store event held at Lacoste's Champs-Elysées Flagship store in Paris.
To attend the event, customers had to hold a specific Lacoste NFT, which was created and distributed through Tropee's platform. The token provided access to exclusive perks, such as a coveted new collection polo shirt. Customers who attended loved being part of a totally exclusive experience, and Lacoste was able to reward their loyal customers while also creating a sense of community around their brand. Perfect, right?
Looking for a way to provide exclusive access to amazing content? Token gating has you covered. Take, for example, the Masterclass Recording NFT created by legendary photographer and videographer Dennis Schmelz.
This NFT provides exclusive access to a recording of Dennis’s hugely anticipated exclusive masterclass on photography and videography, held earlier this year. To participate in this token gated experience, you need to be a member of Dennis’s Auf Reisen 2023 collection and have your wallet address on the allowlist. Only legitimate token holders can access this exclusive content, creating a sense of exclusivity and reward for the most dedicated members of the community.
By providing exclusive access to private discord channels, many creators are harnessing the power of NFT token gating to ramp up community participation.
For inspo, check out The Winkybots. The team behind this super cool NFT has built two private Discord channels on The Winkyverse discord: private-nft-club and trading-private-channel. Only NFT holders (Winkybots and Land owners) have access to these channels, creating a privileged and exclusive space for loyal collectors,
NFT Token gating on Tropee can also provide unique opportunities for merchandise and discounts. Take, for example, the Rudekidz project, which has organized an AMAZING giveaway for loyal holders! To be won: a pair of Nike Air Force I Low White Supreme.
To participate in this token gated experience, you need to be a community member of BbWukong and have at least one NFT from the collection. Stay tuned for more on this - you’re going to want to be a part of it.
Token gating can also provide unique opportunities for exclusive events, such as the Marshall Jefferson Private Livestream DJ Set NFT created by the super cool Helix Records.
This NFT provided exclusive access to a special one-hour DJ livestream set by Marshall Jefferson, the Godfather of House Music. Safe to say the community LOVED it and can’t wait for the next unforgettable event. Can someone say ‘loyalty’?
So plenty of inspo here - and that's just the beginning. From discount codes, to voting rights in governance decisions, to a share of the creator's revenue, with token gating, the world's your oyster.
Best NFT token gating tools
You know what we’re gonna say. Tropee is the perfect starting point for your token gating journey.
We empower anyone in the web3 community to discover, collect and create token-gated NFTs. From physical products, to allowlists, AMAs, raffles, events and promo codes, with Tropee the world is your oyster.
So what are you waiting for? Get started on tropee.com