Token Gating for Physical Products

Leveraging digital ownership for physical world products.
July 19, 2023
Photo by Giorgio Trovato on Unsplash

Traditional brands are creating token-based products. That’s just the reality of the world now.

Token-based digital goods have risen from the depths of web3-native consumers and are entering the mass market consumer. Everyday users are now both buying and receiving digital products in the form of tokens.

This is important to understand.

Digital ownership will change the consumer interaction. It already is.

You see what brands like Louis Vuitton are doing with their treasure trunk NFT holders and access to physical products. Or, you see how Starbucks is tying token ownership to physical cups of coffee.

Brands are creating new mechanisms to engage consumers (token-based products). No, they aren’t all issuing cartoon characters or pointless “NFT collections”.

Rather, brands are thinking about what experiences their customers might actually want or might value. Gutting the actual experiences and breaking them down — this is what I’m referring to when I say token gating for physical products:

  • Brand designs an experience where consumer is incentivised to buy, collect, or is gifted a token-based product
  • Consumer now owns that token-based good
  • Brand designs an experience where consumer is incentivised to buy or claim a physical product
  • Consumer now owns the physical good

Simple. For most major brands, what’s the core part of their revenue? Their traditional, physical product lines.

As a brand, if I told you there was a new channel to engage consumers, get them excited, increase revenue — all while increasing your core business revenue as well — wouldn’t you be interested?

Watch as more brands enter the phygital space — digital ownership driving physical ownership. What a beautiful pairing!


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