10 Key Benefits of NFT Token-Gating for the Loyalty Industry

For brands
Blockchain & Crypto • Jul 25, 2023 • 8 min read
NFT Token-Gating for the Loyalty Industry.

The phrase ‘NFT token-gating’ may remind one of pricy digital images. However, NFT technology (so not just images) has the potential to disrupt many industries.

Reintroducing NFTs

In recent years, the world of cryptocurrency has witnessed the rise of Non-Fungible Tokens (NFTs). But why is it that these digital images have gained so much popularity in such a short period of time?

What are NFTs?

The main purpose of NFTs has always been to revolutionize the way we perceive and trade digital assets. Unlike cryptocurrencies such as Bitcoin or Ethereum, NFTs are unique and indivisible tokens. They represent ownership or proof of authenticity of a particular item or piece of content. Here are some fun facts about NFTs:

  • The first NFT emerged in 2014

  • The most valuable NFT is worth more than $91.8 million

  • Nearly $41 billion worth of crypto was spent on the NFT marketplaces in 2021

  • People who earn less than $25,000 per year invest in NFTs at a similar rate as those earning over $150,000

Source: Fortunly

How do they work?

NFTs utilize blockchain technology to establish verifiable ownership and immutability. Each NFT contains metadata that provides information about its creator, history, and attributes. This digital trail ensures the token's authenticity and can be accessed by anyone on the blockchain.

Statistics for NFT token-gating

Use cases of NFTs

NFTs have gained popularity due to their versatility and the wide range of applications they offer. These applications can range from digital art, music, videos, virtual real estate, collectibles, the gaming industry and much more. NFTs have also opened up new possibilities for user engagement, ticketing, and tokenized real-world assets like real estate or luxury goods. While collectible NFTs have gained significant attention and popularity in recent years, it's essential to recognize that they represent just one aspect of the broader landscape. They may have their place in the digital art market, but utility NFTs are emerging as the driving force for the future of this new technology. 

Utility NFTs

A utility NFT is a type of digital asset that goes beyond the traditional function of a standard NFT, offering practical applications and tangible rewards within a specific ecosystem. As businesses and individuals continue to explore their potential, utility NFTs are becoming increasingly known across different industries. The ability to offer tangible and valuable experiences beyond the realm of collectibility is what makes them interesting. With the rise of utility NFTs, we may be witnessing a paradigm shift in how NFTs can be used in everyday life. Leveraging blockchain technology to enhance business performance by improving content engagement, customer loyalty, and rewards program participation is one of them. 

Most popular types of NFTs

Introducing NFT token-gating

What is NFT token-gating?

NFT token-gating is a concept that leverages the unique properties of NFTs to create exclusive access for individuals or communities. By "token-gating", we mean requiring ownership of a specific NFT to gain entry to a particular service, content, or event. Token-gated access combines the exclusivity of these NFTs with the benefits of membership-based systems, like the benefits of loyalty programs.

Why utility NFTs are the most suitable for token-gating

Utility NFTs are ideally suited for token-gating due to their non-fungible nature and verifiable ownership. Each NFT represents a distinct digital asset, and ownership can be easily proven through the blockchain. This makes it possible to grant access to exclusive benefits, rewards, or content only to those who possess the required NFT. It ensures that incentives for engaged customers are distributed to real people that are actually engaging with your brand, for example. 

Key benefits of NFT token-gating

NFT token-gating - benefits for businesses

There are many benefits to be described for NFT token-gating, we’ve managed to narrow it down to the top five:

  • Cost-effectiveness

  • Increasing scarcity

  • Creating exclusivity

  • Community building

  • Customer loyalty


Implementing NFT token-gating can be a cost-effective solution for businesses. Instead of relying on traditional loyalty programs that require ongoing expenses, NFT token-gating allows businesses to offer exclusive rewards and experiences to customers who hold specific NFTs. This eliminates the need for physical rewards or complex point systems.

Increasing scarcity
Scarcity is a powerful psychological motivator, and NFT token-gating provides a unique opportunity for businesses to create scarcity around their products or services. By limiting access to a select group of NFT holders, businesses can increase the perceived value and demand for their offerings.

Creating exclusivity
NFT token-gating enables businesses to create exclusive communities or memberships, allowing them to unlock full community marketing potential. By granting access only to individuals who own specific NFTs, businesses can foster a sense of exclusivity, belonging, and status among their customers. This exclusivity can drive customer loyalty and advocacy.

Community building
Token-gating can facilitate the formation of engaged and loyal communities around a brand or product, allowing for a new dimension of relationship marketing. By offering exclusive benefits to NFT holders, businesses can incentivize customers to become active participants in a community-driven ecosystem. This sense of belonging fosters deeper connections and long-term loyalty.

Customer loyalty
NFT token-gating provides a powerful tool for fostering customer loyalty. By offering unique rewards, early access to products, or special experiences, businesses can strengthen their relationship with customers and encourage repeat purchases. This loyalty loop is essential for sustaining long-term success.

Join leading brands that tap into NFT token-gating

NFT token-gating - benefits for consumers

Token-gating also offers significant benefits for consumers who hold the required NFTs, here are the top five:

  • Rewards

  • Exclusive privileges

  • Limited edition products

  • Exclusive content

  • Member-only experiences

NFT token-gating allows consumers to access exclusive rewards that are not available to the general public. These blockchain-based loyalty rewards can range from discounts, limited edition items, or unique digital content, providing added value and recognition to NFT holders.

Exclusive privileges
Web3 loyalty programs with token-gating grant consumers exclusive privileges and access to special features or services. This can include premium customer support, personalized experiences, or access to restricted areas or events. By holding the required NFT, consumers can enjoy enhanced benefits and status within the community - a form of gamification.

Limited edition products
NFT token-gating provides consumers with the opportunity to own limited edition or one-of-a-kind products. These exclusive items hold a higher perceived value due to their scarcity and the fact that only NFT holders can acquire them. This aspect appeals to collectors and enthusiasts alike.

Exclusive content
Token-gating allows consumers to access exclusive digital content such as artwork, music, videos, or articles. By owning the corresponding NFT, users gain access to premium or member-only content that is not accessible to the general public. This encourages a deeper level of engagement and connection with the brand or creator.

Member-only experiences
NFT token-gating can unlock member-only experiences for consumers. This can include virtual events, meetups, early access to product launches, or participation in exclusive community activities. By being part of the token-gated community, consumers gain unique opportunities to connect with like-minded individuals and enjoy tailored experiences.

In conclusion, these are the main benefits for businesses and consumers:





Increasing scarcity

Exclusive privileges

Creating exclusivity

Limited edition products

Community building

Exclusive content

Customer loyalty

Member-only experiences

NFT token-gating for (small) businesses

NFT token-gating offers unique opportunities for businesses of any size to stand out and create a loyal customer base. By providing exclusive rewards and experiences to NFT holders, small businesses can foster a sense of community, drive customer engagement, and differentiate themselves in a competitive market.

How you can start today

By leveraging the innovative approach of NFT token-gating, businesses can unleash the complete capabilities of their loyalty programs, cultivating customer engagement, loyalty, and sustained prosperity. With Crowny, brands of all sizes have the opportunity to transform their loyalty strategies and gain a competitive advantage in the market.

Get early access to a demo now.