What: An increasingly popular Web3 tool, “token-gating” limits access to certain spaces to blockchain token-holders, allowing brands to offer perks to select customers.

Why it is important: This can be a way for brands to move beyond the need for a log-in using email addresses or social media accounts; and for brands to provide special perks or features to select communities. Token-gating provides a more exclusive experience for clients and allows companies to manipulate who gets access to high-profile releases.

Some companies are looking to improve their customers’ experience by utilising token-gating, an emerging Web3 technology. Token-gating is most commonly done on desktop websites by connecting a crypto wallet to a site to verify ownership of the necessary token (NFT). To prevent people from using bots to resale products, each token-holder is limited in the number of items they can buy from each drop.

Brands can also target specific holders of different NFT collections to tailor the experience based on what’s in their digital wallet. Brands are largely leaning on these perks as a loyalty and retention strategy.

While some are concerned by the threatening anonymity meta-wallets pose towards big data, many brands like Gucci continue to gather emails and mailing addresses for token-holders who will receive physical products as part of their perks.

Brand exclusivity tied to “token-granted” websites