No Token, No Access
Token-gating will change the way consumers interact with their favorite brands and organizations. Before we dive into why, let’s level-set on what we mean by token-gating.
Token-gating is when a brand or organization grants special or differentiated access to holders of a specific token(s).
To keep it simple, let’s use a sample flow for token-gating:
Basically, I own a token so I get something different.
The easiest analogies that exist today are:
- Sports tickets for entry into a stadium
- Membership passes for a social club
- Subscriptions for access to digital content
- Voting rights for being a citizen or member
All of the above unlock special or differentiated access for individuals, whether that’s getting to watch the game in-stadium vs. at home OR getting to read the news vs. only getting to read the first paragraph; these are examples of where access is restricted and/or differentiated (and accepted by society).
So — what’s different with tokens?
At the core of web3 is ownership of our identity, assets, and objects. This ownership is enabled via tokens and wallets. Very simply, think about your physical wallet — you put your physical tokens: ID, US dollars, membership cards, etc. in your physical wallet. In an analogous manner, your digital tokens are stored* in your digital wallet.
Now, this digital wallet serves as your digital backpack that you can theoretically travel with across physical and digital worlds. As more and more brands tokenize products and services, your backpack will continue to fill with tokens and the applications for token-gating both at-and-across brands will expand.
Let’s take a look at several emerging applications:
Event Access: if I own X token, then I get access to Y event
Examples include: ticketing, conferences, virtual worlds, celebrity/athlete meet-and-greet rooms, physical/virtual fashion shows, the metaverse, etc.
Commerce: if I own X token, then I get Y differentiated shopping experience
Examples include: dynamic storefronts, exclusive access to products, free product redemptions, physical x digital products
Digital Content: if I own X token, then I can view/consume digital content
Examples include: news subscriptions, blog/podcast access, video streaming, music streaming, ad-free content
Community Management: if I own X token, then I can participate/vote in Y community
Examples include: Discord channel access, exclusive community chats, voting rights, DAO or token-based community management and governance
Brands are actively building token-gated applications across each of the above categories and more! Numerous organizations have built token-gated zones within Decentraland and The Sandbox as well as used providers like tokenproof for access to in-real-life events, Shopify is empowering brands to unlock community-focused commerce, TIME is tying digital art token ownership to their digital content, and nearly every DAO uses token-ownership as a form of access to the community.
With verifiable digital ownership via tokens, brands can now create improved digital relationships with their consumers. Imagine what this can do for experiences, loyalty, collaborations, and community!
While there are risks that exist (wallet security, fraudulent applications, token scams, etc.), there is a massive opportunity landscape for brands to create unique experiences and products for their loyal customers, collaborate and partner with existing token-based products and companies, and create meaningful communities that encourage participation and imbue a renewed feeling of individual agency.
*For ease of explanation, the industry often explains tokens being in your wallet. Technically, however, tokens aren’t actually stored in your wallet, but rather the smart contract records that your wallet address is the owner of the token and therefore can do XYZ with the token.
