NFT token gating is a method of authorization and access control that uses NFTs to grant access to digital or physical experiences. Don’t worry if you aren’t familiar with this technical jargon, read on and it will all make sense. Firstly, all your Upland assets are NFTs. These items are things that you own, meaning you can sell it if you wish. NFTs are created on the blockchain (Upland uses the EOS blockchain) and everything is public. This means that anyone can look up the assets you own. Token gating is a powerful tool that can be used to create exclusive communities, reward loyal users, and generate excitement around new projects all by utilizing NFTs.
Any type of asset can be used in order to token gate. As stated the main goal is to grant access to digital or physical experiences by using a NFT. Using Upland as an example, in order to do this I could create a new asset like a map asset, or I could use any existing asset. One of the most common examples of token gating that exists in Upland is utilizing property ownership to allow owners access to private discord chat channels for property owners only. Think of this as a private whatsapp group for home owners on your street. The group manager would be in charge of adding/removing people from the group when they move in/out. Token gating would verify and automate this process. How exactly would this work?
- The owner of the discord server would predefine the properties whose owners are allowed access to the private server. This could be a specific neighborhood, street, or any individual properties he defines.
- Players would have to synchronize their discord account to their Upland account.
- The discord server, which is pre-programmed to verify that the discord user (who is connected to a specific Upland account) owns a specific property defined above would grant access to a specific channel if he meets the necessary criteria.
- As long as the player continues to own that property and meet the predefined requirements, the player will continue to have access to the channel.
- If the player sells that property, the discord server will know to automatically remove that player from the channel.
Some other ways to include token gating would be to provide in game boosts or bonuses to holders of specific block explorers or Legits. Gift a map asset to a new player who purchases a property in your node or neighborhood.
Layer 2 experiences or games are an excellent way to provide value to specific players through token gating. Here are just a number of reasons one might want to utilize token gating in Upland, or any other NFT project.
- Creating exclusive communities: Token gating can be used to create exclusive communities for users who own a particular NFT. This can help to build a sense of community and belonging among users, and it can also help to create a demand for the NFT.
- Rewarding loyal users: Token gating can be used to reward loyal users of a project with exclusive access to content, events, or merchandise. This can help to show appreciation for users who have supported the project, and it can also encourage other users to participate.
- Generating excitement around new projects: Token gating can be used to generate excitement around new projects by offering exclusive access to early adopters. This can help to build anticipation for the project and attract new users.