Token Gating is a technique that NFT projects use to allow their token holders access to specific content, events, and other privileges. For example, a project utilizing the NFT discord community can have a dedicated channel that allows its token holders to access exclusive benefits. While there are open Discord communities, the token gated groups are only for people holding the project’s tokens. Here, we explore the primary reasons projects use the token gating strategy.

Which groups can benefit from token gating?

The standard way of joining a community is to sign up through your email address and provide your personal information. However, in the Web3 blockchain environment, you use your crypto wallet as your identity verifier and log in.

Many decentralized groups demand that users keep a specific number of tokens to gain exclusive access to the community’s content. When signing up with their storage apps, the information is verified to ensure that the user has the right number of tokens to be allowed in the group. Here are some communities that might use the tokengate approach:

• Creators, musicians, and follower groups: They allow tokengated members to access confidential audio-video information.

• Schools: Token gating allows schools to shield learners’ data from outsiders.

• Corporations: they can control specific pages for their workers.

• Conference organizers: they can create a tokengate to restrict who attends the meeting.

Reasons projects use token gating.

The principal goal of token gating a discord NFT community is to deliver value for token holders. A token gated NFT community accesses elite content, airdrops, event permits, and products. Here are the reasons for using token gating:

Safety

Token gating allows an NFT community on Discord to develop a multi-layered confirmation system. Because the rights to an NFT ownership is confirmed via blockchain, it’s impossible to fake token rights. Thus, the strategy allows only token holders to enjoy specific privileges.

Affordable

Most projects are concerned with the cost of doing business. For such projects, cost-effective options are better for them. NFT marketing through token gating is cost-effective. Its overhead costs are low and the tactic  is efficient in monitoring user behavior.

With this strategy, the project can remove the intermediaries from the transaction. Creators pocket all their profits because of the minimal costs associated with the plan.

Creates hype

One of the effective ways of marketing blockchain-based products is by creating buzz. Token gating produces a fear of missing out (FOMO) effect, which is vital in marketing NFTs. The strategy underpins the potency of word of mouth in NFT marketing.  

Enticing your clients to support your expansion

Token rights transform the connection you have with your users. It allows the customers to contribute to the expansion of your offerings. And this happens when you’ve got a flat supply of your products.

A token permits you to distribute perks with your initial users. As the need for the offerings grows, the value for the token also grows. This induces the NFT discord community to spread the word about your product.

Dodges the cold start issue

Network-based offerings are only worthwhile to many users. This phenomenon is known as ‘cold start’ issue, and many platforms grapple with it. For example, you might not use Facebook if you’re the only platform user. However, using tokens circumvents the cold start issue by creating a network effect.

Endorsement of new features before their introduction

A token-gated voting procedure allows the discord NFT community to determine the best features to give precedence to on your roadmap. True, you don’t have to leave each design choice to your NFT community. However, seeking community validation is wise before committing your time and cash to new features.

Solidifies brand partnerships

Developing token gating capabilities for your brand helps you integrate other tokens. And this provides new meaning to the way you partner with other brands. For example, a brand with the same values as yours might want to partner with you. These partnerships allow you to provide your gated community exclusive perks from the other brands.

Use cases for token gating

The token gating tactic has multiple use cases for marketing NFTs. Here are some techniques creators provide their NFT community discord value via this method:

Exclusive offerings

Special product access is an effective method of using a token gating strategy. The technique allows users to access a limited edition of a product. For example, Doodle collaborated with Shopify, a famous NFT collector, to develop an engaging experience for event-goers.

Digital content

Some content is only available for a token-gated NFT community. Mila Kunis is an actress who created Stoner Cats, an animated series. Her show is available for people who hold Stoner Cats. The developers of the show regulate how it’s shared. Besides accessing the show, the holders of Stone Cats have a say in its production process.

Membership in a private community

A typical token gating practice has a token act as a membership ticket. Through a token, an individual can access a confidential society. Members can also gain access to actual conferences and meetups.

An example of NFT-based clubs is Flyfish Club, a famous non-fungible token hotel. You can only dine at this restaurant if you have a Flyfish token. Flyfish NFT has two tiers of membership: Flyfish Token and Flyfish Omakase. Whereas members with Flyfish Token can access the general services, Flyfish Omakase offers special privileges in addition to the available services.

Final words

Token gating has become a practical technique for marketing products and services. The method allows a community to access certain content. Each member of a token gated community has a token that enables them to access the privileges of the project.

Some benefits of using this strategy include safety, affordability, and the creation of buzz around your project. Projects can also use the process to enhance brand partnerships and seek endorsement for new features.