A Token Use Case: Gating vs Spending
A closer look at key tools
Many creators want to learn how they can create exclusivity and reward their most dedicated fans using token gating and spending. These tools are perfect for those looking to provide unique experiences that will encourage continued fandom and build deeper communities. By adopting these strategies, you offer more than access; you provide a sense of belonging and excitement within a world of exclusive content and experiences. Picture a space where your token is a key to special engagements or limited editions. Transform your tokens into a passport to your unique world - Let’s dive in and uncover how gating and spending can seamlessly integrate into your token ecosystem and deliver the goods to your fans.
Token Gating
Token gating is a method where access to content, events, or services is limited to holders of your specific token. This approach requires fans to prove that they hold the token in their wallets, and you can also require they hold a specific number of your tokens in order to gain access.
Cam Murdoch created a token gated experience for his Orb community on Lens Protocol, Lé Surf Noir. Fans holding 5000 SHELLZ tokens or more are able to join the community and interact with Cam’s content. The Orb community allows Cam to post exclusive content that gives them a behind the scenes look at his world and a sneak peak into his latest projects.
Token Spending
Token spending simply means a holder forfeits their tokens back to your allowlisted wallet or a burn address in exchange for their exclusive reward. A burn address removes the tokens from circulation entirely, while sending back to an allowlisted wallet means the tokens can continue to be used by the creator.
Check out this example to see spending in action. Shilly fans were able to get an exclusive Shilly hoodie by burning 100K MOSH tokens on Perk Shop for a limited time, as a reward for their top holders when they first launched the token. These items were also available for full price, illustrating how valuable it was to be holding the tokens. Sometimes it pays to be an early fan!
Choosing the Right Approach:
Gating and spending are related, but can be more effective in various scenarios depending on the goals and strategies of a creator or a community.
Token Gating restricts access to certain content, experiences, or communities exclusively to token holders. It's about access control based on ownership.
Best For:
Building Exclusive Communities: Ideal for creating an exclusive club or community where access itself is a significant part of the value. Think of private Discord or Telegram groups.
Offering Premium Content: Perfect for situations where certain content (like special articles, videos, or services) is reserved for token holders. This could be accomplished with Bonfire.
Community Engagement: Gamify status by setting various gates for Fan Badges.
Token Spending allows fans to use their tokens as a currency in lieu of spending dollars to purchase goods, services, or experiences. It is transactional in nature and can be a reflection of a fans time and money spent in your ecosystem.
Best For:
E-commerce and Transactions: Great for platforms where tokens can be spent on merchandise, digital goods, services, or experiences. Think of the Shilly Perk Shop example or selling an exclusive one-on-one meeting.
Rewarding Engagement and Participation: Ideal for incentivizing certain actions or participation in events, where tokens can be spent as part of the activity.
Dynamic Engagement: Useful in interactive platforms where spending tokens can lead to a variety of outcomes or changes in experience. This could open new worlds in gaming!
Perk.Shop is one of the most popular tools that P00LS creators use to host their token related perks. Creators are able to easily set up store fronts and integrate their token directly into the platform to allow for fans to access perks using the tokens. When asked, owner Taylor McKnight stated:
“Token Holding measures lifetime loyalty, so it's best used as a tiered strategy where folks level up over time. Think about it like offering different perks for bronze, silver and gold tiers of your fans. The most loyal ones have been fans of yours for years and get ongoing VIP perks while the newer fans get welcome benefits like behind-the-scenes videos.
Token Spending is better for incentivizing active participation. You can reward fans with P00LS tokens for taking specific actions like RT this on Twitter or purchase my latest NFT. Then, like at an arcade when trading in your prize tickets, fans can spend their P00LS tokens on the exact reward they want.”
Advantages of Using P00LS:
Ease of Use: P00LS tokens are airdropped directly to token holders wallets, making it easy for fans to use their tokens anywhere they go on-chain.
Customization Options: P00LS uses the ERC20 standard which can be used on any website that accepts this token standard. This radically expands your tokens use cases and utilities.
Focus on Community Building: P00LS prioritizes community engagement, ensuring token distribution is targeting true fans within a community, based on their engagement with a creator.
Whether it’s for creating a sense of exclusivity or encouraging more active engagement from fans, creators have a range of possibilities when working with their token. P00LS is making it easier than ever for creators to leverage their tokens effectively and interact with their community using Perk Shop or any platform that uses ERC20 tokens. Visit p00ls.io to join our waitlist or to learn more about why P00LS is a great solution for creators.
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