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Membership models are not a new concept. However, the rise of blockchain technology has opened up plenty of new opportunities for businesses to monetize their services with memberships. Non-fungible token (NFT) is an emerging type of digital tokens that can store unique information about an entity or user — in our case, members. As you probably know by now, NFTs are unique and non-interchangeable tokens which cannot be replaced or substituted. For example, think of NFT as a dog that has its own name, breed, date of birth etc. Now let’s take it one step further and think of how we can use this to build some interesting applications on top of blockchain technology. These articles go through all the aspects you need to create your own NFT membership system and start charging for entry to your club/app/website/business — whatever you want it to be.
What is a Non-Fungible Token?
A non-fungible token, or NFT, is a special kind of token that only exists in one instance. NFTs are unique and cannot be interchanged or substituted — they can only be exchanged or transferred whole. This might not seem hugely important at first, but the unique properties of NFTs create new applications that were not previously possible with fungible tokens. Fungible tokens, on the other hand, can be interchanged and substituted. For example, think of utility tokens, like $FIL. Utility tokens are fungible because one $FIL is simply interchangeable with another and could be used by any user. Now let’s explore how NFTs are different in key ways. NFTs can be unique, non-interchangeable and non-divisible. If the token represents a rare physical item, like a one-of-a-kind painting or collectible, it is non-divisible. If the token represents a virtual item, like a digital collectible or a membership, it is non-interchangeable.
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Basics of creating an NFT membership system
NFT membership models come in all shapes and sizes. The best thing about them is they can be custom-designed to suit any application or business. Let’s break down a few different membership models and what you could use them for. — Pay-per-view — You can monetize an app or website by charging a subscription to access content and resources. This might be a great model for an educational app or website with a lot of valuable resources. — Subscription model — You can charge your users a recurring subscription fee, like a food subscription service. This could be a great model for an online magazine or online gaming service. — Pay-to-play model — You can charge users a subscription to play a game or use a service, like an online video game. This could be a great model for gaming apps and websites. — Crowdfunding model — Although this doesn’t quite fit the mold of a membership model, it could still be an interesting monetization option. You could launch a campaign on a platform like Kickstarter, where backers pledge a certain amount of money for you to complete the project.
Creating your token
The first step to creating a membership model is to create your token. You’ll need to first decide what type of token you want to create. Most likely you will want to create a fungible token, but it is also possible to create a non-fungible token. For example, you might want to create a collectible token that users can trade back and forth once they own it. For a non-fungible token, you might want to create a membership or virtual item. For example, you might want users to own a unique piece of clothing that only they can wear or have access to. For a more detailed description, check out this article about the difference between fungible and non-fungible tokens.
Adding rewards and penalties to your membership
Rewards and penalties are a great way to incentivize and motivate users to join your membership. These could be as simple as discounts, early access to special content, or even one-of-a-kind rewards. Rewards and penalties can be implemented as smart contracts on the blockchain. This means they will be immutable and transparent for all users. For example, you might want to reward your users with a 10% discount every time they shop with your online store. You could create a smart contract where every time a user purchases something from your store, an amount of money is transferred to your membership token. Rewards can be applied once the user accumulates a certain amount of tokens. For example, the user will receive a 10% discount once they accumulate 100 tokens. Rewards and penalties can also be applied based on a certain action. For example, you might want to apply a penalty to your members if they miss a payment. This can be done by simply deducting points from the membership token.
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Create a whitelist of approved users with your NFT
Whitelists are a great way to give your members early access to products, services and special content. You can create a whitelist within the NFT and make sure only approved members can access it. You can even reward members with a certain amount of tokens if they are added to the whitelist. For example, you might want to create a special or rare item that can only be accessed by whitelisted members. This could be a special item you sell to members or access to a VIP area. You can implement this using a whitelist NFT.
Conclusion
Membership models are a great way to monetize your products and services. For example, online magazines, online shopping stores, and gaming platforms are all great candidates for membership models. As the blockchain industry continues to grow, we’ll see more and more companies implement membership models with NFTs. If you’re looking to monetize your product or service with a membership model, NFTs are a great fit.
