How-to Add NFT Utility to Your Web3 Project in 5 Easy Ways

It seems like there is a new pfp NFT project popping up every day striving to reproduce the results of Crypto Punks, Bored Ape Yatch Club, and Azuki.

The reality is that most of these NFT (non-fungible token) projects of this nature will not achieve comparable outcomes.

It takes a lot of community building experience, the right team, and a valuable offering to achieve what the 3 highlighted projects have achieved. We think of those projects as the mavericks that 99% of future projects will not be able to reproduce… no matter how much effort they put into their strategy.

The reason is simple.

Because projects such as those mentioned above have set the bar high in terms of quality/utility/value, NFT buyers have elevated their expectations when it comes to any NFT project and they seek long-lasting and sustainable utility around the project if they are going to spend their precious layer 1 network tokens (ex: ETH, AVAX, SOL, BNB, or HTR) on “being part of a new community”.

The great news is that there are many creative and engaging ways to put in place a successful NFT/token project or community.

We want to share our outlook on 5 easy ways to provide long-lasting utility to your project and stakeholders.

1) Holder-only governance or hybrid governance

What is holder-only governance?

This is where you tell your community that they get to dictate the direction of your community, projects, or product via a token-based voting mechanism tied to your project’s token or NFT. Projects that adopt a purely token-based governance model literally adhere to the wishes of the holders when it comes to core decisions. Implementing this kind of governance can increase holder engagement and produce a loyal holder base that feels each and every decision taken by the project is aligned with the needs and wants of the holders.

What is holder-only hybrid governance?

This is a term coined by our team at SENTR3 (the enterprise division of our company). It refers to a token-based governance model where only select types of decisions can be governed and enforced by token holders. It is a much more pragmatic approach to governance and tends to lead to better outcomes than a fully token-based governance program. This is because it is very hard for holders to consider all the facts required to make a decision when their understanding of the nuances involved in the decision-making are not as clear as those of core team members. A hybrid model makes a lot of sense for decisions such as: feature-related decisions, branding-related decisions, and other decisions such as when to throw an annual token-holder-only event.

2) Exclusive access to holder-only premium content

Your project could come up with premium content that it knows will be of value to your holders. As the subject matter expert leading your project, you hold the answer to what content you should token-gate for your holders.

Here are a few ideas for inspiration:

  • Research pdf or video reports
  • Online education course collateral
  • High-value cheatsheets and guides

3) Exclusive access to holder-only events (physical or online)

Your project could come up with an array of holder-only events, whether they be hosted in physical or virtual environments.

Here are a few ideas for inspiration:

  • In-person holder-only event (conference, party, meetup, or anything else you can think of)
  • Virtual holder-only conference or community group calls
  • Holder-only Gather spaces
  • Holder-only Webinars

4) Holder-only offers, discounts, and promotions

To further increase utility for your NFT holders, you can token-gate access to special offers, discounts, and promotions that are aligned with the needs and wants of your holders. If you are a supper club, offer a discount on a limited-quantity merch offer. If you are a gaming company, provide holder-only discount coupons on the early release of your next game. The possibilities really are endless here.

Here are a few ideas for inspiration:

  • Holder-accessible discount codes for an e-commerce store (if you hold X, you can save on Y)
  • Holder-accessible early bird offers highly related to your core offerings (if you hold X, you can get access to this exclusive thing Y)
  • Holder-accessible partner promotion opportunities (if you hold X, you qualify to benefit from Y opportunities)

5) Holder-only engagement gamification and incentivization

The ultimate way to stand out from the crowd when considering the incentive structures within your project is to implement custom holder engagement gamification for your holders.

What does that mean?

By leveraging on-chain activity, it becomes easy to think of fun reward and incentive structures that can be triggered by on-chain activity of your holders. Since it is possible to compute your holders’ token balances, recent transactions, and activity within your community, it makes sense to reward good behavior where-ever it can be measured.

Let’s look at a few examples of how this is possible:

  1. If your holders accumulate X NFT, give them access to Y metaverse world;
  2. If your holders hold your NFT for X days, they unlock Y rewards or access;
  3. If your holders engage more with other holders than their peers by at least 20% on average, their governance votes get a multiplier; and
  4. If your holders attend your entire virtual event, allow their wallet address to have access to a limited-time special offer reserved for your most engaged holders.

These web3 gamification examples may not apply to you and only scratch the surface of what’s possible when it comes to adding gamification to your web3 holder engagement strategy.

Whaleroom is available on iOS and Android in open beta

How to Quickly Implement 5 Holder Engagement and Retention Strategies

So you may be asking yourself, “but how do I do any of these things once my token or NFT are in the hands of the community?”.

This is a great question, and a few years ago we wouldn’t have the answer for you.

The great news is that the web3 space is moving full steam ahead and ecosystem builders such as WhaleRoom/SENTR3 have built an all-in-one solution that can facilitate each strategy proposed above.

SENTR3‘s technology that powers WhaleRoom is available to anyone to use for their own project.

Via its native suite of apps built natively to support the growing needs of token and NFT projects, the platform can help any token creator or organization to accomplish the following things:

  1. Token-gate access to a social space only accessible to holders (out of the box)
  2. Manage holder-only poll voting within these token-gated rooms (out of the box)
  3. Allow room owners or white-label clients of the technology to add any custom features they desire (upon request)
  4. Allow for the easy segmentation and bundling of one or many entry criteria based on your exact needs (out of the box)
  5. Token-gate the sharing of exclusive content, events, offers, discounts, and promotions (out of the box)
  6. Add any custom on-chain analytics, reporting and much more related to token holder activity (upon request)

Feel free to reach out to our team over at SENTR3 with any questions you may have about your use case and ways to increase holder engagement for your project.

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