A brief introduction to Token Gating
A community is an integral part of any NFT project or community. Whether it’s an NFT Marketplace for Gaming Collectibles or any other NFT collection, communities form the beating heart of a project. This being the case, it is imperative for the teams behind these projects to cater to those who have been investing from the very beginning. Token gating is one such strategy used by these projects to give their NFT holders additional perks and benefits. These perks could be exclusive access to certain Discord channels or even physical assets.
This is simply token gating in its essence. But what does it bring to the table? Read on to find out.
What are the benefits of Token Gating?
The best thing is, of course, exclusivity. By creating an element of exclusivity for NFT holders, the worth of the NFTs goes up. As we know, NFTs are all about FOMO. When you increase the stakes, it stands to reason that the NFTs’ value, too, rises. Creators, too, gain more control over their works and they get to control the distribution. Furthermore, they get to benefit from royalties of secondary sales. And intermediaries, too, are eliminated. This ensures that artists get all the royalties and credit they deserve. And of course, one of the most noteworthy features is the inherent security and transparency of the blockchain technology. So you can be sure that the perks you get from holding the NFT are absolutely legitimate.
Any NFT project relies heavily on the support and enthusiasm of the community. And token gating provides a way to reward the NFT holders with added utility and other benefits. From the perspective of the creator, too, token gating allows one to ramp up the worth of their project by creating an exclusive club. Who knows?! As brands move more towards Web3, we may be able to expect some big names to make use of token gating as well!