Membership as an NFT

Memberships have become an interesting subset within the NFT ecosystem. Using this new technology , brands can change the relationship that exists between themselves and their followers. Instead of having a single use item , or even a monthly or season long membership product , rights holders can deliver and work with their supporters across a much longer time horizon. Even after the initial sale , there is clear incentive for the seller to ensure they provide valuable and exciting experiences. This lies in the fact each NFT has a royalty attached to it (usually between 5-10%). As an example , Nike have made just over 93 million in revenue from initial NFT sales with an additional 92 million coming from royalties post initial launch*. The new dynamic is great for both parties , the brand has an opportunity to create revenue post sale while the NFT holders themselves can reap the benefits of additional utility beyond the typical life cycle of a product or service. 

There’s a few reasons why this new technology can improve the current membership subscription for users. 

1. Control : with traditional memberships users pay a fee for eg. a yearly subscription. The problem for those that pay is that they’re now tied to that subscription for the duration of the term. With an NFT you are in control. If you’ve reaped the benefits of your NFT or feel it's no longer worth having you can sell it whenever you want on the open market. 

2. Utility : Not only this but an NFT can also give its holders extra utility. Metaverse based experiences or events can be configured so that only holders of a given NFT can enter and enjoy that specific reward. Holders might be able to play a particular game or receive extra benefits by using their NFT as a key in digital spaces created by the original NFT issuer. This is going to become a huge driver of value in the next few years and a big reason why NFTs can, in certain instances, offer more than traditional membership programmes. Additionally , NFT holders can verify themselves so that when it comes to getting priority support or access to Q and A sessions they’ll be easily identified. 

3. Scarcity : Certain subscriptions offer massive benefits. For example an airline company might offer all members the chance to win a free holiday. You might have a 1/100 chance or a 1/10,000 chance depending on how many members are signed up. NFTs have scarcity engrained in them. You’ll be able to tell straight away how many members exist so that when it comes to receiving scarce benefits across holders you can make an informed decision on whether a membership is worthwhile or not. Alternatively holders may want to feel part of a very select or exclusive club similar to owning a rare piece of art or collectible. There’s no ambiguity when it comes to how many editions of a certain membership have been created by an NFT project. This fact can make it easier to ascertain if purchasing a membership is worthwhile or not. 

4. Security : There’s always a chance that with a physical membership card you can misplace or lose it completely. This is a lot less likely when your membership is stored digitally and can be accessed via any mobile device. On top of this, certain NFT subscriptions have the functionality to be ‘paused’ for a period of time. For those looking to rent out e.g. a season ticket to attend a singular football match , there’s the added stress of not knowing if the ticket is going to work up until you enter the stadium. Through the NFT being present on the blockchain , you’ll be able to immediately tell if what you’re purchasing is part of a registered collection or not. 

While NFT and blockchain technology have not yet reached maturity it’s clear that there are certain aspects of memberships as NFTs that might improve on current models. These aspects will continue to evolve and the final perk is that as the tech grows , so too can utility. Original issuers of the NFT can quite easily layer extra value for dedicated holders as time passes. This is why ‘lifelong’ membership programmes are such an interesting development in the space - the opportunity to provide value for holders is endless. 

*via - https://www.inputmag.com/style/nike-most-revenue-nft-sales-list