AI and Web3 are a match made in next-generation tech heaven.
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On one side, you have technology that's found its mainstream groove, and consumer product market fit on the heels of everyday life-changing apps like ChatGPT, Stable Diffusion, and Midjourney.
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As a result, they've reinvented in a matter of months how we live, work, game, build apps, make art, and create pictures of cats (the last two may be one and the same).
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On the other hand, web3 has rewired our brains, communities, products, and brand strategies for the onchain future—a paradigm shift where cookies become wallets, individuals become
communities, ads turn to tokens, clouds decentralize, and walled gardens turn transparent.
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“The Only Constant in Life Is Change.”- Heraclitus"

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In technology, as in life, this one always hits. Whether it’s AI-powered smart pillows, a fully NFC-chipped wardrobe, or an entire generation spending their allowance on avatars, the future of engaging consumers is no longer about maybe leveraging next-generation technology — it’s a must. "

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Nonetheless, it’s not always easy to keep up when so much change is in the air. Sometimes, it even requires us to completely rewire our brains to make room for what we must understand to thrive as a brand. Rather than turn this into a game of Operation, let’s continue.

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Recently, we celebrated the successful wrap of the Mojito-Powered Sankofa Carnival, a digital art experience at the Toledo Museum of Art which showcased a three-part collection of digital works from two incredible creators: Osinachi, a Nigerian artist widely loved in the NFT community; and Yusuf Lateef, a legend of the local Toledo art scene.
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The project's entire minting process (including an IRL QR code scanning option), wallet setup, and community management tools were built by Mojito's invisible web3 technology.
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Below, we've highlighted some moments from an X Spaces with artists Osinachi and Yusuf Lateef, Calvin Burchfiel (Web3 lead at Toledo Museum of Art), and Raquel Cornejo (Mojito Consumer Engagement Lead / Go to Market team).
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Keep reading to learn how the Sankofa Carnival drop helped Toledo Museum seamlessly use new technology, engage its audience, and tell a powerful story about how art can connect people across cultures.

Recently, we examined why web2 toolkits like Reddit Pro aren’t the best option for brands that want to engage consumers and retain loyalty across their products and experiences.
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So what is? Drumroll, please.
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From art to sports, luxury fashion, and even credit cards, Web3 is ushering in an entirely new set of tools for brands that want to build deeper connections with communities across dynamic environments that they can customize to their greatest needs.

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Let’s break down some of the benefits we talked about last week in greater detail, starting with web3’s ability to help brands:

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1. Gain insights into customer activity and behavior across both online and real-world touchpoints.
2. Leverage new analytics by connecting data from wallet signatures and onchain activity to build richer profiles and segment audiences more effectively.

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2023 was not a great year for Reddit. After announcing sudden changes (e.g., a massive price hike and a new set of rules) to its once-free API, technology required by the many thousands of subreddits, things got tense. In what many have come to refer to as the APIcalypse, hoards of subreddits went dark in a coordinated blackout—and some closed their r/'s for good.
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Eight months later, Reddit, reportedly preparing its IPO, looks to be working to clear the air with a new set of free tools. Interestingly, it's not users or subreddit moderators who are getting a box of chocolates and an apology note — it's brands.
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Reddit Pro is billed as a "new toolkit for business growth," which the company wrote is the next step in its focus on building advertising solutions that channel Reddit's community-driven conversations. The new tools reportedly extend beyond traditional advertising and help brands grow an organic presence on the platform and leverage Reddit's interest-based communities to "understand, inform, and engage authentically online."

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Can you believe the year is already 1/12th over?
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Luckily, the 2024 web3 conference season is just heating up.
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This week we’re doing something just a little bit different and bringing you deep cuts on which events to target to get a pulse on innovation. Because if there’s one irony in web3, it’s that in the ever-evolving landscape of brand loyalty, staying ahead means diving deep into the heart of IRL experiences.

With that in mind, this year's lineup of web3 events promises unparalleled opportunities to connect, learn, and grow.

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When our smart-as-heck web3 pal Mel, aka @belikewater893, drops a spicy thread on X, we recommend you listen up. Case in point: Mel’s recent response to an article in Forbes on the journey NFT categories have taken from speculative mania fodder to a technology that’s taking brand loyalty to the next level. 

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In her thread, Mel highlighted a particular line from the article, where writer Javier Paz stated, “technically, this kind of loyalty program does not need to rely on blockchain technology to run,” referring to a recent reward-based, blockchain-backed loyalty program from Lufthansa. Similar to Mel’s response (the thread), you better believe this line got our internal Slack channel buzzing. 
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Let’s break down some of Mel’s points to understand further how blockchain isn’t just a shiny buzzword to hit a brand’s vanity innovation metrics but a completely new toolkit for connecting consumers to products and communities that you actually can’t find anywhere else.

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Mojito's technology breathes life into dynamic web3 experiences for brands. We simplify the complex backend, allowing the front end to effortlessly focus on the fun stuff – including sticky consumer engagement.
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Our recent collaboration with the forward-thinking museum turned this vision into reality. Mojito worked with Toledo's team to orchestrate a digital art experience by Osinachi & Yusuf Lateef. Our community engagement portal enabled Toledo to provide a smooth minting process, hassle-free claims, turnkey community management and reporting for the museum. The result? A powerful drop of 10,000 NFTs.

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Swipe (or nowadays, tap) your credit card, and earn points. A process that’s now commonplace has a lengthy history that can teach us more than a few things about customer loyalty — and its journey through technology. Let’s start at the beginning. 
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From paper to plastic 💳
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While the history of credit cards dates back thousands of years, things turned from stone to metal — and later paper and plastic — about halfway through the 20th century with the arrival of the modern credit card in 1950. Reportedly invented following a case of a forgotten wallet, The Diner’s Club Card (initially owned by Discover Financial Services before its acquisition by BMO in 2009) was the first multipurpose charge card credit card intended primarily for dining and travel expenses. 
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The Diner’s Club was also the first to pair the concept of charging credit with fueling consumer loyalty through the inception of points. Through partnering with dining, entertainment, and later, travel entities (i.e., airlines, rental cars, and hotels), Diners Club cardholders paid a tiered annual fee to gain special perks based on how much money they spent. The greater the yearly fee, the greater the perks. 
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About eight years following Diner’s Club in 1958, American Express entered the credit card industry with the world’s first international charge card, which initially had an annual fee of $6 (one dollar more than Diner’s Club). Shortly after, Bank of America and Mastercard followed suit. During this initial period, most credit cards focused on offering customers just that — credit — with loyalty and reward yet to take off. 

2023 was a year of building in web3 — and no shortage of brands got in on the action. 

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Across luxury fashion, institutions like Prada, Louis Vuitton, and Maison Margiela reimagined the roadmap for retaining customers through captivating yet accessible content that turned buying products into something more: an enduring digital connection. Others, like beauty platform KIKI World, pushed the limits of blockchain — and fingernails — via web3 communities focused on co-creation and customization. Across the sports field, Manchester United, Red Bull Racing, and the Tampa Bay Rays-owned Rowdies, won through fan programs and sticky experiences that incentivized fan engagement and boosted sales. The list goes on.  

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Below are 10 brands who did it right in 2023 — and, in the process, won web3.
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Words matter — and in web3, they can get pretty confusing when new technologies are adopted so regularly. 
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In October, we published a primer on NFT digital twins, which help connect a physical product with a digital asset, which is often its virtual representation. Today, we’ll be digging into another piece of web3-powered tech focused on blurring the lines between digital and physical assets — digital passports — a new term and tool being adopted by one of the world’s biggest luxury brands. These new digital passports carry with them some striking similarities to digital twins, though with some interesting (and potentially revealing) differences. 

Everything in life moves in cycles, and brands in web3 are no exception to the rule. 

In our recent blog posts, we’ve explored how web3 ushers in a new era of brand opportunities — from powerful customer retention and data analytics to dynamic product customization and personalized, user-owned experiences. 
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So, what can this level of brand evolution mean for sports, a $500 billion global industry where teams like Manchester United are worth over $6 billion, count nearly 700 million international fans, and command a brand profile often said to resemble global corporations like Coca-Cola and Nescafé? Let’s kick off with some insights.
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According to McKinsey, fashion companies are expected to double their investment in technology by 2023. This statistic was one of many released during 2021's digital assets boom, revealing an important truth: consumers — and especially Gen Z — care deeply about owning their digital identities. In the two years since "NFT Summer," we've learned a lot about the evolution of consumer habits in digitally-native spaces. These insights can help guide the future of how brands operate and consumers engage in virtual environments. 
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As a short follow-up to our last blog post on how web3 is driving a return to the internet's golden age of customization, we're sharing some additional thoughts on how you can build for the next wave of consumer adoption. This evolution is already showing signs of incredible value for forward-thinking brands like Gucci, Valentino, L'Oréal, Adidas, Nike, and many more.

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MySpace, StumbleUpon, GeoCities, LiveJournal, Tumblr — the early internet thrived on user-driven, customizable experiences that, while rudimentary in design, clunky in function, and altogether useless for major brands (i.e., not monetizable or targettable), offered humans some of the earliest opportunities for representing themselves online. 

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Two decades later, across multiple transformational eras of the internet (more on this below), what can we learn from these now archaic — and predominantly extinct — platforms? To start, let's set the stage of the golden age of the web and the subsequent erosion of online customization that followed.

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These early platforms referenced above were among the first to offer users a customizable digital sandbox that lacked the restrictions — and intrusive, expensive, increasingly ineffective advertising practices — that is now commonplace across tech. These were platforms on which people created, not platforms on which products were sold.
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FAANG companies undoubtedly standardized the internet user experience. These companies built easier ways for people to create and disseminate information while creating the ability for the world's biggest brands to reach these new, content-craving audiences through new experiences and digitally-native business models. However, FAANG-style companies have also contributed to the flattening of the once-loved, now-nostalgic digital aesthetic, eliminating (or narrowing) users' ability to find customization online.

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‍Example: go to StumbleUpon right now, and you'll just get dragged between identical Pinterest boards.

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Luxury brands are some of the most successful at creating not only hype — but generational loyalty — around high-quality products. Just consider some of history’s most long-standing luxury fashion houses, like Louis Vuitton and Prada, which have been around since 1854 and 1913, respectively. For any brand, let alone those selling luxury products at high price points, these institutions’ longevity reveals several powerful truths about how luxury brands can mix time-tested strategies with disruptive new tactics and technologies in order to succeed in a big way.
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‍Using web3, luxury brands have the opportunity to retain — and better understand — their customers by offering captivating yet accessible experiences that turn the act of buying any product into something more: an enduring digital connection.
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What do luxury brands do best? In an increasingly saturated market, they’re experts in maintaining a loyal customer base of people willing to pay high prices. They do this through unmatched brand recognition, audience analysis, and conscious evolution. 
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While the toolkit around these strengths has evolved (it’s safe to say customer analytics looked different in 1854 than it does today), it’s an ability to keep up with the times while carefully expanding on their prestigious reputation through experimenting with new technologies that has helped them thrive. 
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However, the way these technologies come to life for brands is not always equal in delivery, optics, and impact. In web3, we’ve learned that simply “doing it” is not the same as “doing it right” when leveraging web3 to grow and retain an audience. 
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This realization becomes even more pressing when you consider how fast web3 technologies evolve, which is both a potential hurdle and a massive opportunity for smart brand leaders. 
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‍If you want the best ROI, you need to consider what’s working and why.
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Your customer relationship management system is your business's beating heart. It’s how you nurture customers, track vital information, and make strategic decisions. 

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Now that web3 has entered the fold, traditional CRMs can be augmented. So the question is this: Is your brand prepared for it? And what does the future look like?

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Brands can expand upon their CRM data with wallets and token interactions to build loyalty in the changing digital economy. 

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If your CRM is the heart, what happens if it can't support your entire customer base along with their actions and interests? Consumers are adopting web3, and you want to be there from the start. 

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And with increasingly more limitations on what consumer data brands can collect, store, and use, along with apps and systems that don't talk to each other, brands miss out on data everywhere. 

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You need web3 CRM capability to connect wallets and token usage to your web2 data to accurately paint a picture of your customers. 

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Enhancing your CRM with web3, you can track and reward engagement across virtually any physical or digital touchpoint and connect it all in one place to analyze and manage.

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Onboarding customers to create web3 wallets is the first step to getting started. The good news is that, with Mojito, the process is seamless for new users. They can set it up and manage it with an email address. In many ways, wallets have become the new email address, offering more benefits for customers and providing brands with the holistic data and CRM capabilities they need.

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Mojito's web3 CRM collects and pulls all these moving pieces from different parts of the web together to create one remarkably effortless customer experience. 

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In this article, we’ll compare the differences between a web2 and web3 CRM, the benefits of using a web3 CRM, and how Mojito might be the right fit.

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What’s the difference between web2 and web3 CRM?

The CRMs most brands use do not facilitate the needs that web3 has—the biggest one being connecting offchain and onchain data and creating an integrated portrait of customers across all physical and online interactions. 

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Web2 CRMs provide essential data and communication tools to manage emails, SMS lists, social media followers, eCommerce buyers, event attendees, and more. 

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But it's difficult to connect every data source you'd like to trigger into your web2 CRM, let alone add new data sources in web3.

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Brands can instead use a web3 solution to augment their CRM by connecting data sources in a different way that brings everything together. Companies can create the most connected, data-rich CRM they've ever had. 

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Brands require CRM solutions to capture the entire customer data picture across both the internet and real-life experiences. In turn, they create a community-driven customer base, increase sales, and use their CRM for better connections, communication, and data.

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Wallets are the new email addresses

It's no secret that brands are losing data through their traditional channels. Big Tech companies are reigning in how much data you have access to, like Apple limiting cookies, and how brands now get an incomplete picture of their customers.

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Additionally, as customers interact with web3, your brand is in the dark until you establish web3 CRM capability. 

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Web3 wallet addresses are unique identifiers for users on the blockchain. Their address is recorded when they purchase an asset or trigger activity on the chain. With Mojito, onchain and real-life interactions join together in one familiar experience.

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As your customers interact with your brand and create or log in with their wallets, you can associate that with their customer profile. 

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When a customer logs in on your profile manager, they can add their web3 address, resulting in a holistic view of your customer. 

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This is a huge opportunity for first-party data. Your brand can get direct analytics from your activities through a verified, authentic process supported by onchain and offchain interactions. 

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Wallet addresses offer a more reliable and extensive way to gather data on customer behavior, help drive engagement, and make better growth decisions. 

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Cookies are the new NFTs

While traditional solutions suffer from increasingly limited access to cookies, web3 offers brands a bright and better future.

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NFTs are non-fungible tokens. A non-fungible token is a digital asset recorded on a public decentralized ledger called a blockchain. It can be verifiably owned and impossible to forge. 

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NFTs make it possible for someone to digitally own an asset, which has changed the future of technology. But it also provides a unique opportunity for web3 CRMs, engagement, and data. 

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"NFTs: your ticket into a brand's action." — Michael Litman

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Dynamic NFTs utilize live metadata to gather customer information and drive engagement. 

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Before solutions like Mojito's Dynamic NFT, non-fungible tokens didn't change. And why should they? People wanted a unique digital asset that would last forever and retain or grow in long-term value. 

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But as web3 matured, so did the perspective on NFTs. 

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What if the value of an NFT was change?

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For example, artists began to experiment as they created NFTs. They would explain that the NFT would change and evolve. This in itself made it valuable and rose in popularity. 

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Brands would learn how to use it for data and supercharge engagement only a short time later. Traditionally, metadata remained static, but now Dynamic NFTs update metadata based on consumer behavior. 

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Brands can leverage metadata in many use cases:

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Loyalty programs: Customers can join membership communities when they purchase a digital pass with Mojito's traditional, familiar checkout experience. Every time they interact with your brand across any first-party or third-party platform, like redeeming rewards or visiting an event, their token metadata is updated and fed back into your CRM.

Exclusive access: Brands can implement token gating, limiting access to your brand's NFT or memberships. Gate websites, apps, events, games, and more. When customers check in, their activity becomes trackable.

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Enhanced membership and subscriptions: Dynamic NFTs allow brands to sell time-access passes with expiration dates. While owners can always retain the NFT, their subscription must be maintained for full access to benefits. Brands use the metadata to identify subscription holders and analyze their activity (while adding a new revenue stream). 

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Customer interactions: Brands use NFC-enabled spaces to connect customers with their Dynamic NFTs and events, physical checkout experiences, and more, intertwining digital and physical customer engagement. When someone redeems a reward by scanning a code or object, your brand can track that activity. 

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Web3 solutions like Mojito use webhooks to send data from third parties back into your CRM. Every time a user takes an action, Mojito sends that data to your CRM and vital tools. Your data is collected, verified, and authenticated in one place, on or offchain. 

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Mojito offers a cohesive relationship management infrastructure. You can leverage a complete picture of your customers through thousands of interactions involving physical triggers, third-party apps, web2 tools, and web3 activity. Customer actions across the web or in real life can be configured to work with your CRM. 

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You’ll be able to understand your customers better than ever and reward them for their engagement at a level that was impossible before. 

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Benefits of using a web3 CRM

You don’t have to worry about a bumpy or complex ride when you adopt a true web3 CRM. 

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You’ll have all the tools, resources, and tech stack integrations needed to make an enterprise solution for your customers that meets the standards of your brand. 

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Below are several benefits you can expect when you connect your web2 CRM to a web3 solution.

1. Bring web2 and web3 data together

Mojito facilitates web2.5, meaning instead of "switching" web experiences, brands and customers can use web2 and web3 with no learning curve or friction at all. All is encompassed in one familiar internet experience.

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Users can pay with a credit card or crypto and interact with the online apps they've used all these years (as well as easily using web3 apps). 

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Mojito enables brands to collect and pull necessary data to understand their customers through all web iterations and experiences—all in one CRM solution.

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They can use the full power of this web2 and web3 data for events, NFT collections, token gating (exclusive access based on ownership), and other digital ownership experiences.

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2. Actionable data for better customer relationships 

Every brand wants to improve its customer relationships. Still, as the internet becomes more fragmented, especially with the introduction of web3, improving service and keeping up with expectations will be much more difficult. 

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Web2 CRMs are not capable of putting all these actions and platforms together.

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However, web3 CRM platforms improve customer relationships by incorporating off and onchain activities through a centralized database.

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If brands adopt an enterprise web3 CRM, they can meet changing consumer needs and stand out in the market with better and improved relationships thanks to the tools and possibilities web3 offers.

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3. Improved sales and marketing strategies

Now, more than ever, your sales, marketing, and customer service teams will have access to the most accurate and transparent data within multiple channels and communities, all in one place. Your CRM can include customer history, preferences, community management details, and more data points within web3. 

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You can use accurate and more abundant data to analyze customer behavior for improved decision-making. A suitable CRM can also help sales and marketing teams provide personalized messages based on their data, increasing conversions and other KPIs. 

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4. Next-level customer service 

Not only does better, more current information help improve customer relationships but so does the level of service you can provide.

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Your team can proactively resolve issues with real-time data collection (for example, tracking customer engagement and pinpointing areas of opportunity), which increases customer satisfaction. 

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Brands can go beyond positive experiences and create the best problem-solving processes and community-building opportunities for your customers.

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5. Greater ROI potential

Web3 CRMs connect your stack, improving overall sales, marketing, and customer service and building long-term loyalty. 

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These critical benefits offer bigger ROI potential and future growth. By analyzing blockchain activity, brands can track the popularity of certain products, use blockchain-verified data to track inventory and invest in the areas customers are most interested in. 

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Web3 CRMs also open new revenue streams, like selling digital assets with NFTs. Brands can even test the reception of new physical products by selling limited sample releases with “NFT digital twins” (when a physical good comes with an NFT representation at purchase). 

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6. Strategic positioning 

You can better position your company for the economic shift to the decentralized web with a web3 CRM. 

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For example, Mojito's web3 CRM also includes "web2.5" features for the transition. 

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Some customers won’t know how to navigate web3—they’ll want simplicity. Others will want every tool available to them. Web2.5 serves everyone. New users can pay with a credit card and have a user-friendly experience. At the same time, web3 adopters can take full advantage of innovation and opportunities with cryptocurrency payments and more.

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Brands will serve web2 and web3 users for the internet's evolution, and they'll have a robust CRM foundation for the new economy. 

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Web3 has finally allowed consumer brands to connect with their customers in a decentralized digital arena. 

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Brands can meet the growing demand for NFTs and web3 experiences, increase sales, and solidify customer loyalty. But they have to start today before customers find alternative solutions as web3 adoption grows. 

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Customers want web3 so they can enjoy digital assets, loyalty points, and communities. Then, they can take these benefits to a metaverse, marketplace, or decentralized app (DApp). 

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Thanks to NFT digital twins, the physical and digital world becomes one integrated experience.

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We'll define how digital twins fit into your web3 strategy, how they work, and how you can start today.

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From the top: Defining NFTs

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An NFT or "non-fungible token" is a digital asset recorded on a public decentralized ledger called a blockchain. It can be owned and verified.

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These tokens represent art pieces, virtual products, photography, and more. As a result, NFTs have established true digital ownership for the first time in history.

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What’s more, brands can utilize NFTs to provide and sell ownership opportunities for customers. 

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What is an NFT digital twin?

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NFT digital twins help connect a digital asset with a physical product. 

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For example, if someone buys a designer purse, they could receive the physical product as well as an NFT digital art version. They can wear the bag physically and share their NFT on social media and in a metaverse. 

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Brands like Nike have already jumped in. 

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With Cryptokicks, Nike's virtual sneakers, customers can embed themselves in the ultimate web3 experience. They can buy virtual sneakers valued by the popularity of the "skins" or designs. 

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Owners redeem physical shoes after purchasing the NFT. Much of it is still developing as innovation moves fast, but they want users to experience the shoes wherever possible (like how they partnered with EA Sports to incorporate the shoes into games). 

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In Nike’s case, The Verge reports, “[It] suggested that its virtual apparel could eventually be equipped in video games and ‘other immersive experiences.’” Soon, Nike could add their shoes to EA FC as players play soccer with their NFT merchandise.

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None of this is possible without a blockchain connecting physical and digital assets. But as brands unite both realities, they can give customers a fully immersive brand and community experience.

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Mojito provides the NFT infrastructure, marketplace, and digital twin technologies required for a successful web3 strategy. 

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Key NFT digital twin terms

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Tokenization vs. digital twin

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A token represents assets or utility on the blockchain. It can become non-fungible (NFT) when it is a unique (one-of-a-kind or serialized) item. While tokens help represent a digital twin, this doesn’t necessarily mean tokens will always have a physical component.

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Digital twins are a combination of the two (digital and physical). Owners acquire the physical product and the NFT, which is then recorded on the blockchain.

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Virtual worlds

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Web3 brings virtual space opportunities where online users can interact with others and communities. Your brand can host their own virtual experience, and customers can also feature your digital products in other virtual worlds. Brands have already experimented with virtual experiences in games like Fortnite and Roblox.

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In many ways, it's the virtual embodiment of the web3 customer experience. Users can play games, build spaces, and show off their digital assets. Thanks to blockchain technology, they can bring their items into any virtual world. 

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Digital twin NFTs connect physical and virtual realities so users can join different virtual spaces with their items from anywhere.

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Consumer brands need a seamless multi-option payment system to satisfy customers and create a high-quality experience. 

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Web3 payments are growing in demand as consumers crave alternate options to purchase and engage with brands. These modernized payments involve AML/KYC compliance, digital wallets, blockchain, smart contracts, crypto, and dozens of tools to create a web3 ecosystem. 

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But here's the good news: With Mojito, brands easily accept payments with traditional methods like credit cards or bank information, alongside web3 digital payments. Mojito brings it all together so you can increase sales and meet customer demand without stress.

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Right now, brands have the opportunity to become pioneers in the consumer web3 shift. Customers can pay how they want—whether with a credit card or a cryptocurrency like Ethereum.

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Together, we'll dive into the uniqueness of web3 payments, blockchain and crypto, benefits, and how to integrate web3 no matter your adoption stage.

Unpacking web3 payments

Web3 digital payments are one component of the web3 ecosystem. Web3 is considered the third iteration of the internet. 

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Three phases were built on top of each other to create an immersive internet:

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Web1: This was the read stage. You could get information from a web page or use the internet as a reference. 

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Web2: The "write and publish" stage gave everyone the power to engage with each other through social media and other platforms that presented everyone with their own corner of the internet. 

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Web3: The phase we find ourselves in today is about digital ownership. Internet users can create something and own it as an asset. They can pay for products through various digital currencies. 

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The best brands have nurtured and serviced their customers through every iteration of the internet. Because of this, they became (and many remain) the biggest movers in the market. 

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Web3 ownership has the following characteristics:

1. New revenue streams

When customers buy a digital good from your brand, it's theirs. But for the first time, brands can add a new revenue stream through the re-sale of their digital goods. 

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If a customer wants to resell an NFT you minted, you can earn a percentage in royalties. Also, if someone sells an item in your marketplace (Mojito can power this with our white-label solution), you can receive a portion of the transaction.

2. Audit capability

Brands build their reputations on quality and customer experience (creating trust). It's vital to develop a payment environment that's transparent and secure for traditional and web3 payments.

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Web3 technologies provide transparency, automation, and audit capabilities. When someone makes a transaction, like a web3 payment or transfer of ownership, it’s recorded on a public ledger—the blockchain. 

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If it’s a digital asset like an NFT (non-fungible token), it has a unique identifier tied to you until you sell it. Since this is public information, everyone knows what data is shared and can verify its authenticity. 

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This allows brands and consumers to trace the provenance and transaction history of digital assets. This offers a safer and more transparent form of ecommerce.

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Not only are these benefits good for consumers, but they also add additional levels of safety and better responsibility standards for brands interacting with their customers and communities.

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Smart contract automation also helps save operational time, cost, and labor.

3. Digital ownership for customers

Thanks to the blockchain (a public ledger), platforms can integrate themselves with it, and users can ideally maneuver between spaces and apps. Consumers can own their digital assets outright.

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For example, customers can purchase your NFT in a marketplace with Mojito’s white-label solution. Since the token, provenance, and transaction are recorded on the blockchain, consumers own it no matter what marketplace they bought it from (like with a physical purchase). 

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Customers don't need a credit card company, the merchant bank, or the bank to communicate. Instead, they can transact directly with you—the merchant—and have immediate ownership. 

Everyone saves on fees and once that payment is sent, you don’t have to worry about chargebacks or losing on completed sales. Mojito makes the payment and integration experience easy and user-friendly, like the internet experience everyone loves today.

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More importantly, brands prevent becoming obsolete (like the iPhone apps Apple created that replaced everyday necessities) and can instead become definitive leaders in the market.  

4. Community and culture

Through token-gated access (when customers have exclusive access to a community, rewards, virtual events, or physical events because of NFT or similar ownership within your brand project), they can join other passionate customers and invest in your brand. 

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Web3 cultural identity plays a huge role. It’s the idea of freedom over your digital assets and data, fostering creativity and innovation. Web3 payments facilitate the buy-in as customers want to grow closer to your brand. 

5. Fast payments

Since web3 payment infrastructures do not rely on a centralized bank or intermediaries, the transactions settle immediately.

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Faster transactions provide multiple benefits to both the brand and the consumer. The first is better cash flow. Businesses have more control over their funds, with faster payments arriving in their accounts. 

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Another plus is a smoother experience. Customers can get their asset or reward as soon as they purchase it without waiting for delayed funds or a slow system. 

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Faster payments create a real-time approach to transactions to improve security, asset delivery, and overall experience. 

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Customers want a more intimate relationship with the brands they love. Web3 connects the dots with digital ownership, exclusive offers, and community membership. 

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Brands have the opportunity to meet customer needs, increase sales, and build their presence on the evolving internet. 

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But how can a brand jump into web3? They can meet customer needs with a web3 marketplace. 

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Using a white-label solution, brands provide a great experience that meets their high standards, enforces royalties, and fosters a committed, passionate customer base. 

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Together, we'll dissect and define the web3 marketplace. Then, we'll dive deeper into how a marketplace works in web3 and some use cases for consumer brands. 

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What is a web3 marketplace?

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Web3 marketplaces allow users to buy, sell, and trade digital assets peer-to-peer with automated transactions and enforced royalty payments to the brand.

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Digital assets can be “digital-only” artwork, avatars/skins, trophies, and/or membership passes, and digital assets can also be “backed” by redeemable physical goods and experiences.

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Sometimes they are initially earned or distributed for free by the brand or offered at a price. The vast majority of transactional activity occurs after the primary drop (if they’re in demand by a hungry audience). This means your customers want and need a place to discover available assets, interact with other customers, and ultimately trade. 

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Why would brands want to drive this behavior off-platform to a third-party marketplace when they can host a white-label marketplace instead, thus controlling the experience and collecting royalty payments?

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Key characteristics of web3 marketplaces 

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Web3 marketplaces allow sellers to list their digital assets for a “buy now” price, while potential buyers can make an offer.

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Mojito enables brands to accept payments with credit cards or cryptocurrency and facilitates royalty payments to multiple parties automatically and instantly, regardless of payment choice.

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When customers make the purchase, a smart contract automatically kicks in to broker the transaction. It is then recorded on the blockchain, updating the asset’s provenance and showing proof of ownership.

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Customers use branded digital assets to access special events and exclusive rewards, and to share their love for their brand through profile pictures and community engagement.

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It's one of the most exciting new ways to build brand loyalty and increase market reach. As customers continue to adopt web3, brands can meet them right where they are and lead the way.

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Web3 marketplaces offer direct engagement with and between fans, a global economy, provable scarcity, and engaging community features. 

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Successful examples of third-party marketplaces include OpenSea, Rarible, and SuperRare. But third-party web3 marketplaces operate like Amazon or eBay—with your brand mixed together amongst many others, you have no control over user experience. 

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Worse, the leading web3 marketplaces today do not enforce royalties, so trading on these platforms generates no revenue for brands. 

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Alternatively, brands can provide customers with a white-label marketplace using Mojito that represents their organization and generates revenue from secondary trading.

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Our team is thrilled to unveil a game-changing update that's going to revolutionize the way you manage royalties and distribute earnings. Introducing Mojito’s Royalty Splitter – use this powerful tool to streamline and simplify the process of sharing earnings among collaborators involved in your brands web3 project. 

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Here are just a few reasons your brand will love our royalty splitter functionality. 

• Set custom royalties with defined rules for distributing earnings.
• Automatically distribute royalties to each contributor.
• Track royalties in real time utilizing the transparency of onchain data. 
• Generate reports on royalty payments from our easy to use dashboard. 
• Integrate with your CRM to export royalty data to other systems

It's an exciting time for brands and consumers as web3 changes the digital experience. During this transition, brands need a game plan so that every piece falls in place.

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But you can't just flip a switch to web3. 

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Web3 APIs are the key to bridging the gap between web2 and web3. They equip brands to leverage new web3 technologies and connect them to existing web2 infrastructure. Over time, brands can scale their transition based on innovation, customer needs, and adoption.

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Together, we'll define what web3 APIs are and what makes them different, the types of data to expect, and some challenges you should consider. 

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What is a web3 API?

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An API, or application programming interface, is a set of protocols that allow two or more software platforms to "talk" to each other. A web3 API is the same thing but with the added power to also “talk” to the blockchain simultaneously.

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APIs in web2 vs. web3

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APIs in web2 involved independent apps working together for the user's benefit. 

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For example, one of the most popular APIs you use today is when you log in to a store or website using your Google, Facebook, or similar credentials. That website uses your email or social account's API to verify your account and log you in.

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Users enjoy these APIs because of their convenience. Instead of someone dealing with a dozen different accounts, they can just log in with their Gmail or Apple ID.

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Web2 APIs are all over the internet, like how a CRM might connect with a third-party online shop or email marketing platform. And while these benefits have helped create a smooth universal web experience, they have yet to carry users over to web3.

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The difference is the blockchain

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Web3 APIs allow brands to build physical and digital touchpoints that “talk” to each other using the blockchain as the data reference point instead of a centralized integration service. 

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This makes any two services “interoperable” without any work on an integration: They're simply reading and writing data according to the same protocol.

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For example, if you drop an NFT (a digital, ownable asset) collection, your customers can purchase the digital artwork. If they want to feature their ownership on another app, that app can connect to the blockchain for verification (which was initially established with your marketplace). 

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In 2022, Twitter (now X) launched the NFT profile picture feature. Users could connect their wallets through Twitter (a web3 API feature), which proved blockchain ownership.

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Web3 APIs help eliminate go-betweens by directly connecting the user's app to blockchain communications. This creates a smoother experience that supports web3's passionate base, valuing ownership, privacy, and direct access to resources. 

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Blockchain's accuracy and real-time public data prevent many security and fraud risks in traditional web2 settings. Though not immune to scams and fraud, it provides a better alternative to web2. Partnering with Mojito gives you a secure, fast, and user-friendly web3 experience. 

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Data you can query with a web3 API

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Why should web3 APIs matter for a large brand? And what would that look like?

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If brands want to evolve with their customers, they must embrace web3. A modern web3 API system equips brands to leverage the complex actions required in the web3 ecosystem. There's much to account for between blockchain activities, smart contracts, and other moving pieces.

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Fortunately, brands can use their existing web2 infrastructure combined with platforms like Mojito to meet web3 needs—particularly the ability to collect missing data.

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For example, companies should consider the following realities:

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1. Brands are running out of data

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It's getting harder for brands to access the data they need from their customers. Consider legacy methods like email open rates, social media engagement, and more. Big Tech is limiting the data brands have access to, like how Apple has made it more difficult for tools like Google Analytics to get data from Safari.

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As data restrictions continue to trend, brands will only have a fragmented version of the analytics they now use. 

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As a result, companies need to find a way to control their process to gather necessary data without depending on the few in charge.

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2. Customers are interacting elsewhere

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Thanks to the rise of virtual experiences, hybrid events, digital ownership, and other online innovations, customers continually demand web3 solutions. And they will hang out in the web3 ecosystem whether their preferred brands have jumped in or not. As they interact and engage on the web, they share valuable data for brands. 

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Companies can utilize web3 to understand their customer behavior online and track how those customers interact with the brand. 

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Brands can use web3 API technologies to connect onchain experiences like assessing interest in community memberships or tracking attendance and purchasing behavior at events.

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3. Brands can get back to the big picture

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Both of these points bring us to the whole picture. Web3 APIs unite offchain and onchain experiences to create a complete (and more accurate) picture of customers.

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"Web3 wallets are the new cookies…" — Salesforce SVP Marc Mathieu

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Brands can track movement in the web3 ecosystem and what's happening in traditional online settings. Mojito creates a seamless experience with the CRM and tools you already use. Data doesn't have to be fragmented and can instead become a pillar to grow sales, increase customer engagement, and build a thriving, loyal community. 

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When brands integrate web3 APIs with their existing stack, they can expect many types of onchain and offchain data. We've seen that the most impactful method to utilize different types of data is through Mojito's Dynamic NFTs.

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Dynamic NFTs

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While NFTs are digital assets recorded on the blockchain, Dynamic NFTs help create a living experience rich in data. 

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NFTs hold "metadata" and can reference nearly unlimited content, code, and raw data. When consumers connect their wallets to websites or apps, the brand can learn what assets they own and analyze the metadata.

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In most cases, NFT creators would freeze this data after minting it. This was partly because creators and brands wanted to ensure that these non-fungible products would never change. 

And that was reasonable, considering that when you buy a pair of white shoes, you don't expect them to turn bright pink in the morning. People want to know the long-term value of what they buy.

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But finally, the Dynamic experience has changed how we can leverage the metadata. 

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What if the value was the change? Creators began experimenting with the idea that art can change over time and even get influenced by internet activity. It created an entirely new digital class of assets and a living, intimate art experience. For brands, it’s an entirely new way to understand customers.

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One of the most famous examples of this experimentation is Bitcoin Volatility Art by Matt Kane, which changes daily based on the past 24 hours of Bitcoin trading activity.

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What does this mean for brands and data? 

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Brands can write data onchain from one touchpoint service (like checking into an event) that is legible through another (like an eCommerce store). They can utilize trigger events to capture touchpoints onchain. As a result, companies can unite data collection with remarkable customer experiences to identify invaluable insights. 

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Companies can get ahead right away:

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Loyalty program benefits

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Brands can create an onchain loyalty point program. Every time a customer interacts with your brand through a purchase, event, or membership community, their NFT metadata gets updated. They can redeem their points for rewards and benefits. Meanwhile, brands get a 4k picture of their customers' behavior. 

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Membership experiences

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Brands can offer incredible membership opportunities while collecting critical data. For example, they can sell an NFT digital pass that gives customers access to events. With the living metadata, they can maintain full access with a paid subscription. They can retain limited access if it expires and keep the asset as a digital owner. 

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Brands combine this dynamic experience with token-gating, which validates access to events, rewards, or opportunities with verified NFT owners. 

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Exciting engagement 

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Mojito's web3 API technologies involving Dynamic NFTs allow customers to interact in physical settings with digital rewards and ecosystems. 

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Imagine a brand holding an event with a contest to find hidden rewards. NFT owners can scan their findings in NFC-enabled places that connect them to their new win. The metadata can change based on time restraints, locations, winners, and more. The players' NFT metadata gets updated for an immersive community experience. 

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This is a massive opportunity for brands to identify their most passionate customers. Brands can also assess loyalty and how customers react to different campaigns. 

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These are only a few use cases, customer benefits, and brand opportunities you can capture with different data types. Mojito can unite and enhance your data so you can make better decisions and enhance the customer experience. 

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Get the latest web3 trends, news, and resources when subscribing to our weekly newsletter with 2,000+ brand leaders.

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Bridging web2 and web3: Integrating web3 APIs with traditional infrastructure

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Ultimately, brands need to find a solution that provides the necessary web2 and web3 integrations for a top customer experience. 

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Brands need web3 APIs to avoid fragmented experiences throughout the web and integrate them. Otherwise, juggling a hundred different web3 factors and functions while doing the same for web2—and integrating all of them—leaves room for errors. 

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Your systems would struggle to talk to each other. And worse, your customers will hit a brick wall full of frustration and bad experiences. 

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That's why partnering with an enterprise web3 API solution like Mojito can facilitate this—a white-label platform will make all the difference for your brand. You can launch successful NFT drops and jump into web3 with your loyal customers. Mojito integrates web3 onchain activities with web2 offchain experiences thanks to our robust platform stack.

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From digital to on-the-field customer experiences 

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Web3 and web2 need to work together to nurture sustainable scalability. It’s necessary as the internet evolves and serves as a bridge to get customers involved who have never used web3. 

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Mojito successfully introduced web3 when we built the infrastructure for the Tampa Bay Rowdies’ NFT drop.

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The NFT is called the Rowdies Digital Pass. Owners join a unique membership community exclusive to season ticket holders. They use the pass and a QR code to receive gameday stadium discounts and perks. 

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Each digital pass has a unique owner onchain, identified by their wallet, which is the basis for creating interoperability between existing physical and digital touchpoints.

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Not only has this been a successful launch for web3 users, but many Rowdies ticket holders have jumped into web3 for the first time. 

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As a result, 60% of season ticket holders claimed their digital passes, and 20% used them during the game for benefits. The team has received invaluable data and analytics from activity (like engagement, purchases during a game, and more). The remarkable experience and program has created a more passionate community that empowers its values for technology, experiences, and soccer. 

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Experiences like these are growing at a rapid pace. Brands and customers are excited about creating an intimate connection with each other linked to digital ownership and community experiences. 

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Security compliance with web3 APIs

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Since many web3 APIs are connected to transactions, brands must work with platforms and APIs that keep security in mind. 

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Companies should partner with a marketplace and platform that upholds AML compliance, representing their ability to prevent fraud and security threats. Mojito, while AML compliant and a Merchant of Record, provides the necessary requirements to protect your brand and customers.

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The platform should also have resilient protocols to confirm identities, oversee transactions, and minimize risks for customers. Security is pivotal to a web3 operation because web3 users hold trust, safety, and transparency as their ultimate priorities.

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Reputable platforms not only handle everything you need for a successful web3 experience, but they also help protect you and your customers. 

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How Mojito helps brands securely & confidently utilize web3 APIs

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If brands want to utilize web3 APIs, drop dynamic NFT collections, and build a platform that offers a user-friendly experience, they should consider Mojito. 

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Mojito is a high-end SaaS for luxury brands. It's an all-in-one web3 enterprise solution that scales with you and your customers. And it works with the tools you already use.

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Mojito can help you lead the way and offer customers incredible opportunities to build community and participate in engagement experiences. 

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Those loyal customers will fuel brand growth, spread the word, and establish your company as part of web3’s future.

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Mojito has it all:

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• Diverse payment options for web2 and web3 (credit card and crypto)
• Digital wallets
• Compliance
• Authorized Merchant of Record 
• Robust marketing stack built for customer loyalty 
• Fast and secure eCommerce stack
• NFT marketplaces
• Immersive virtual experiences
• Powerful SDKs
• And more

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Mojito can power your brand in web3, from NFT memberships with dynamic drops to exclusive brand rewards and events. 

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Cut down on the cost of switching providers—or How Web3 APIs Bridge the Gap With Web2 Infrastructures and managing different tech providers—to bring your vision to life. Mojito offers an all-in-one, white-label solution for any and all functionality you need.

‍Learn more today and try the demo to see how your brand can take advantage of web3.

Web3 offers incredible opportunities to build brand loyalty, increase revenue, and grow thriving communities. 

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As brands build their web3 infrastructure, they must decide what and how to incorporate their eCommerce stack for an experience that supports their brand.

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They should consider the following:

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1. Is it easy to use?

Web3 eCommerce should be so straightforward that someone unfamiliar with it can start immediately. But it should also be well-equipped to utilize all of web3 for those well-versed in the ecosystem.

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2. Does it meet web3's needs?

Your eCommerce platform should accept various cryptocurrencies, integrate with decentralized applications, communicate with blockchain technology, and include the necessary components for a full-solution web3 experience.

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The luxury experience doesn’t meet customers halfway—it exceeds expectations. A web3 stack should do the same.

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3. Is it safe, secure, and reliable?

Web3 eCommerce stacks should comply with eCommerce business laws and expectations (like AML compliance to protect from fraud). 

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If you choose a platform like Mojito, you get a Merchant of Record that safeguards risks and threats from bad actors.

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In this article, we’ll cover the transition to web3, how web3 eCommerce is changing the internet, and how you can get started.

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Evolution of web2 to web3 eCommerce

The internet changes so fast that it’s hard to remember what it was like before. 

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Take web1, for instance. 

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It started mainly as an information hub through which you could visit a static site. Then, companies introduced online shopping carts, internet directories like Craigslist or Yahoo! Directory, and eventually, the search engines we know today. But everything was controlled by a few companies. 

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It wasn’t until web2 emerged that everyone could participate in their creations and engagement. In the publishing and writing stage of the internet, users could easily blog or share on social media. They used their online community and growing network to fuel their brand and sell. 

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All these benefits still lacked a crucial customer need. 

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Consumers didn’t like how they depended on platforms and often didn’t own what they purchased (like digital products, where they only had a license or a copy). They wanted digital ownership.

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The new solution: Web 3.0

Web3 technologies solve many issues and create a decentralized marketplace with alternative payment methods, investment opportunities, security and privacy, and digital ownership.

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For the first time, customers don’t need to depend on a few companies or platforms to dictate their commerce experience. They can buy, collect, sell, and build a community on their terms. Additionally, luxury brands could create the high-quality experience they wanted with no limitations. 

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Transitioning to web3 recognizes the “ownership” stage of eCommerce. 

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Brands must invest in a web3 eCommerce stack and join up with partners like Mojito to meet these needs, grow their customer base, and build customer loyalty that spreads like wildfire. 

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It’s a complex journey for brands on their own. They have to consider the infrastructure and all different types of customers on their web3 journey—whether they’re big users or not, everyone is on a path to web3 as the internet evolves. 

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A brand’s eCommerce solution must facilitate Web 2.0 needs for newcomers and those transitioning but also meet the expectations of a fully adopted web3 user (a “Web 2.5” solution).

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How can brands leverage an eCommerce stack for all stages? 

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It starts with understanding the blockchain factor.

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What is web3 eCommerce?

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Web1 eCommerce: read stage

Web2 eCommerce: write and publish stage

Web3 eCommerce: ownership stage

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Web3 eCommerce is online trade that uses cryptocurrency and the blockchain. It encompasses and facilitates web3 themes like ownership, decentralization, and community. 

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When someone purchases a product on your marketplace, let’s say an NFT (non-fungible token or unique ownership of a digital asset), your web3 eCommerce stack conducts the sale and records it on the blockchain.

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The blockchain is a verified public ledger that shows digital ownership or onchain activity.

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For example, if you decide to sell NFT artwork based on a product line you’ve launched, customers can purchase it through an auction on your marketplace. 

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The transaction is recorded when they buy the NFT, and they have proof of ownership. They can keep or sell it in the future on a secondary market (brands can receive royalties with resales). 

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Companies can give rewards and exclusive access to events (through “token gating,” a way to prove digital ownership for entry), which can create exciting communities. These loyal customers and members continue to spread the word about the brand, strengthen brand culture, and launch strong momentum for market reach and growth.

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Brands can also hold digital events and connect with customers. Or, they can connect digital ownership and eCommerce purchases with real-life events, using the blockchain to verify eligible customers for exclusive access. The potential to build relationships with customers has never been greater.

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There are two notable uses of web3 commerce to consider, which we briefly mentioned above:

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• NFT & token-gated commerce: when a brand sells non-fungible tokens, usually tied to artwork, digital collectibles, or general proof of purchase when brands use tokens as a ticket to membership for exclusive events, loyalty points, rewards, and buying opportunities
• Redeemable commerce: when customers purchase a token they can redeem for something else, typically a physical product or event ticket

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The web3 eCommerce industry has also been created to facilitate today’s web2 needs. Customers can buy tokens with credit cards and simple-setup wallets with a platform like Mojito. 

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Brands can also use web2 apps like Discord to build communities while connecting them to onchain activities. When someone purchases a token, they can use it to access these gated communities. 

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Subscribe to our newsletter for weekly web3 trends, news, and use cases in your inbox.

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Mojito transforms consumer engagement by providing easy to use web3 solutions, and our new token-gate feature revolutionizes how brands interact with their audience. 

Read our blog to learn more about token gating.

Consumers own  tokens to unlock unique benefits. This feature empowers brands to offer exclusive content, rewards, interactions, and more . Token gating is a powerful way to grow your brand, build customer loyalty, and generate recurring revenue.

Mojito’s favorite reasons to implement a token-gating incentive include:  

• Generate buzz and attract new customers: Token gating can create a sense of exclusivity, which can help to generate buzz and attract new customers. 
• Build brand loyalty and engagement: Token gating can transform your consumers into dedicated community members. When customers collect and own a piece of your brand, that has token-gated value, they are more likely to become long-term buyers and engage with your brand on social media and other channels.
• Build high-growth communities: Token gating can help to build high-growth communities around your brand. When super fans have a chance to buy into a private community, they help to build and grow the brand in ways never seen before.
• Provide a more efficient system for selling and reselling event tickets: Token gating can provide a more efficient system for selling and reselling event tickets and other logistic-heavy customer experiences. For example, if your brand holds an important event, it can be made available only to token holders.
• Add additional value to products: Token gating can add additional value to your products by giving customers exclusive benefits or access to exclusive content. This can help to differentiate your products from the competition and attract new customers.

Of course these are just a few of the many benefits of token gating. If you're looking for a way to grow your brand, build customer loyalty, and generate recurring revenue, token gating is a powerful tool that you should consider.

Ready to web3? 

Contact Mojito to learn more!

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Token gating equips brands with the power to connect with customers, increase engagement, and create a community that cements their leading place in the market.

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In this article, we’ll explore what token gating is, how it works, and its benefits. Then we’ll go over a few practical examples in the market. 

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You’ll also learn how Mojito can provide the resources to make token gating possible as an enterprise brand web3 solution provider.

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What is token gating?

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Token gating (also known as tokengating, NFT Gating) creates value for customers by offering limited-access benefits, like private communities, events, or additional assets on a decentralized network. 

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The catch? Only owners of the token can access these perks. 

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This creates exclusive ecosystems where consumers must hold a set amount or specific version of a given token in order to access certain privileges. Token ownership provides potential access to many perks and rewards this way. Tokens are usually distributed through a free mint or primary sale, and can typically be traded on the secondary market.

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Tokens can be purchased through a brand’s custom marketplace or places like OpenSea and bought with different types of cryptocurrencies such as Ethereum. 

Web3 and token gating: How it fits together

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Web3 refers to the third iteration of the internet: 

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• Web1 offered static informational pages.
• Web2 invited users to create their own corners on the internet with social media.
• Web3 gives everyone the power of digital ownership and sovereignty online. Web3 proposes a decentralized network and the ability for each user to control their own data.

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All stages are popularly summarized into three words: read, write, own.

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How tokengating works 

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A token proves digital ownership of an asset, which can be verified on the blockchain.

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"Token gating" limits access to exclusive offers for token owners only.

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For example, a luxury brand might sell limited-edition watches that come with a tokenized certificate of authenticity of the physical product as well as a digital representation, and then provide token-gated access to private offers, communities, and events.

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When someone earns or purchases a token with their digital wallet, the transaction is recorded on the blockchain, a public and decentralized ledger. 

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There are many ways to get a token from a brand. Customers could have purchased a product that included one, or they could have bought a meme, image, or art piece as part of an NFT project. The original owner can also resell tokens. 

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Once someone has a token, they can use it to enter your gate.

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For example, if they join a private chat community on Discord, they could connect their digital wallet containing the token to get access. 

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Or, they could scan a NFT QR code and get benefits directly from your brand --like how the Tampa Bay Rowdies operate their digital season pass, to increase season ticket holder engagement NFT holders scanned a QR Code in stadium at Food & Beverage locations. By scanning the QR Code the point-of-scale verified ownership of the NFT and passed on a discount, exciting season-pass-holders to spend more across the season of games. All powered by NFT QR Code based benefits or tokengated discounts.

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You can leverage many opportunities, especially if you partner with an enterprise solution provider that can create the right system and support for you and your customers.

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Token gating in a nutshell: A fan gets ownership of a token => they use it to access exclusive assets, experiences, and/or communities => they can hold the token and continue to receive benefits, or sell it on the secondary marketplace.

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Embracing web3 and consumer engagement

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The changing economy is teeming with possibility, and web3 innovations are transforming the landscape for everyone. Brands can embrace these innovations and create a remarkable experience for their most passionate customers.

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But besides excitement and long-term trends, brands can’t ignore web3. Here’s the bottom line: Consumers continue to adopt web3 principles.

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They no longer want to read information or solely interact online. They want a decentralized and intimate relationship with the brands they believe in. Consumers want to own their creations and assets and control their data. 

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Web3’s allure for customers is about digital ownership.

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We can see this shift with consumers’ changing sentiment on web2, especially as they face data privacy threats. 

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While consumers might not know everything about web3, their habits point to it. The Washington Post shared some revealing statistics regarding American internet users:

• 72% of users distrust Facebook with their personal data
• 63% of users distrust TikTok with their personal data
• 60% of users distrust Instagram with their personal data

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With the rising distrust of Big Tech, along with the growth of the community economy and web3 interest, companies would do well to prepare for the continued shift in consumer behavior. 

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Customers want to own their data and creations rather than large corporations. 

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Web3 ownership and transparency reinforce that goal. In turn, brands can win consumer trust, loyalty, and engagement. 

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Token gating is the best way for brands to get started. Patrons can unlock exclusive community features, loyalty programs, intimate access to brands for super fans, and customer buy-in with assets. 

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If you want to see first-hand how your brand can leverage token gating and community memberships—and keep up with web3 trends, analysis, and profiles—sign up for our newsletter.

‍

What are the benefits of token gating?

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In this new and sprawling landscape, there are plenty of ways brands can use token gating to increase their value and win loyal customers. NFT token gating has many creative uses and benefits, and many have yet to be discovered.

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Ten token gating benefits

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1. Viral growth opportunities

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Word of mouth is the most effective form of marketing, and web3 token gating helps fuel it. 

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Whether through a surprise “drop” or project release, fans get excited and spread the word about the opportunity. 

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They share value increases of the token or the cool art that comes with an NFT. All this buzz ignites online activity and grows your reach.

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Fan clubs are one example of this—as we’ve seen influencers and celebrities experiment with in the past—such as VeeFriends, Flyfish Club, Stoner Cats, Bored Ape Yacht Club, and more.

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2. Increased brand loyalty and engagement

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When customers collect and own a piece of your brand, they are more likely to become long-term buyers. Not only will they continue to purchase from you, but they will also serve as natural ambassadors of the brand. 

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Additionally, any private community or exclusive perk will continue to increase their loyalty and positive brand perception.

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3. More scarcity-linked value

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When something is perceived as scarce, customers see it as more valuable—especially in the luxury market. Token gating can offer limited access to products, events, and communities, adding an incentivized component in purchasing or investing in your brand. 

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Companies can also offer token-gated products with extreme exclusivity, adding a high collectible value to the brand.

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4. High-growth communities

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One of the most powerful benefits of token gating is its potential for powerful brand communities. 

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When super fans have a chance to buy into a private community, they help build and grow the brand. Not only do they generate buzz for the company, but they also help establish purpose and acceptance that can only be found in tight-knit communities. 

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5. Logistical and security advantages

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Token gating also provides a more efficient system for selling and reselling event tickets and other logistic-heavy customer experiences. 

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For example, if your brand holds an important event, it can be made available only to token holders. If they cannot attend, they can sell it to other token holders, keeping the event exclusive to the target audience. 

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Offering a secure transaction method also avoids many kinds of scams and other unfortunate realities of ticket-buying.

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6. Additional value to products

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Your overall value can increase as you create digital assets, communities, and other valuable components through tokens, especially if attached to your products.

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When a customer buys a product that comes with an NFT and token-gated advantages, they know they’re getting more bang for their buck.

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7. Token-gated commerce for exclusive sales

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Sell highly limited products to specific token holders to generate more value and interest in joining your web3 community.

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8. Valuable insights with traceability 

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When you use token gating, you can easily trace who uses your benefits and when, as well as who they sell to. You can use this information to improve your overall brand and find out what interests people.

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9. Customer buy-in

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Not only would customers get exclusive value from tokens, but they could possibly turn a profit when they sell them. When they join a token-gated community and club, they invest in the brand with the potential for real return on investment.

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10. Recurring revenue

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If your token gating is linked to a card or art as an NFT, you make a percentage of that sale and further revenue when it’s resold.

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This is a substantial opportunity—considering that your project could increase in value as it becomes more popular. It can increase your revenue or help you re-invest as you build your brand’s future in web3.

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Examples + use cases of token gating

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1. Enriching brands through social clubs

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When Liverpool FC wanted a way to build its fanbase community, Mojito knew it could utilize token gating for the best solution.

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The club launched the LFC Heroes Club collection on Sotheby’s Metaverse. These NFTs not only provided great art and collectible assets but jump-started a digital membership club.

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This technology establishes ways for sports teams to connect with their fan base, rewarding them and even converting them into partial owners through distinct forms of on-chain digital collectibles. 

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These digital assets can be seamlessly claimed, purchased, sold, or held.

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With ownership of an LFC Heroes Club NFT, fans gained entry to a community with virtual hangouts, match day activations, generous giveaways, spirited competitions, real-world meetups, guest appearances, discounts on Liverpool Club merchandise, and other benefits.

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While the NFTs are original, authentic, and limited edition digital collectibles, the project goes beyond memorabilia. It delivers real-world utility and benefits to its owners.

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Brand-led membership programs are one of the next major things in web3. There is no better place to start than the global sports community, which has long united people worldwide around a common passion. 

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This pioneering launch by LFC pushes the frontiers of worldwide fan engagement, with a ripple effect anticipated across diverse industries as major brands embrace the practice.

2. Elite access 

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Lyrical Lemonade released an NFT project collection of different carton designs. The media and events company took full advantage of token gating when it limited the NFTs to 500 and required ownership to get exclusive access to rewards.

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Holders get merchandise only available to them and exclusive NFT ownership opportunities. Owners also get tickets to the Summer Smash event.

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Mojito facilitated the project by building out the token-gated website and platform to make the project successful.

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Toni Sudimac, Head of Partnerships at Lyrical Lemonade, stated in an interview with Boardroom:

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“Our thing was that we wanted to protect what Lyrical was and not make any abrupt changes because the last thing that we would want to do is alienate our supporters. So that’s where the idea for the Carton collection came in. We wanted to kind of test the waters and do it in a way that was true to us.”

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The test worked. Because of Lyrical Lemonade's success, the organization wants to invest more in web3 opportunities. 

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In the same article, Sudimac expressed his wishes to streamline the entire token-gated experience, mentioning that at future festivals he would like holders to scan their NFT for direct access at the entrance. 

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Token gating, web3, and brands

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As web3 provides more opportunities and consumers increasingly crave community, endless possibilities exist to create a growing and loyal customer base.

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Web3 applications and opportunities are new and developing, and the brands that take advantage now will position themselves for future growth opportunities unique to them. 

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As managers and leaders work to find ways to introduce their brand to web3, they can utilize token gating to get started and leverage its practical uses now.

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Choosing your partner to launch token-gated experiences

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When you’re developing your token-gated project, there are many factors to consider. 

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You want the process to be user-friendly and enjoyable for your customers. You also want it to be successful, secure, and able to position your brand for continued growth. 

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The right partner can deliver your infrastructure, UX, and go-to-market so that you can successfully launch your web3 initiative. 

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Mojito's consumer engagement platform makes using blockchain technology, NFTs, and token gating simple. 

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Our solutions combine the user-friendliness of web2 platforms with web3 benefits. You can create your own NFT platform marketplace, mint NFTs, launch NFT drops, nurture customers, generate reports, and more.

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Mojito’s winning API and enterprise SaaS solution provide you with the following (and more):

• Token gating setup and management 
• Dynamic NFT setup and management
• Simplified wallet setup and management (non-custodial and custodial options)
• Memberships, rewards, and loyalty program setup and management
• Fiat and crypto payments on primary and secondary sales
• Free mints, buy-now drops, Dutch auction, and standard auction
• Secondary marketplaces to list for sale and make offers
• Minting setup and smart contract deployment
• Smart contracts and automation 
• Insights and reports
• Multi-party royalty splitter 
• Product guides, FAQs, and technical support

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Web3 memberships are the future of brand loyalty, and token gating makes it possible to customize and build your club for passionate customers. Communities fuel brand growth, and it’s never been a better time to get started with web3.

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Once brands build a thriving membership online, there’s no telling where that momentum will lead. Devoted fans become ambassadors, launching a buzz campaign that doesn’t stop.

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But if companies want to maximize their success, they need to start now. This is the perfect time to build a community foundation so that you become the market leader when web3 adoption comes full circle. 

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Learn how to take advantage of token gating and web3 opportunities with Mojito. Get in touch with Mojito today to bring your web3 strategy to life and make your token-gating vision a reality.

NFTs are an effective way to build brand community and expand your market reach. But once you mint your NFT project, the game isn’t over. You have to get it out into the marketplace and distribute your collection. 

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NFT auctions are one of the most popular ways to sell digital assets. 

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In this article, we’ll review everything you need to know about NFT auctions to win in the space (and not get left behind).

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What are NFTs?

“NFT” stands for “non-fungible token.” 

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A non-fungible token is a digital asset recorded on a public decentralized ledger, called a blockchain. It can be verifiably owned and impossible to forge. 

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Today, NFTs often involve digital art and creative endeavors, like digital art pieces or trading cards. These assets lead to high-potential use cases like memberships, customer loyalty programs, exclusive events, and more. 

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What is an NFT auction?

Onchain NFT auctions work similarly to traditional auctions. The primary differences are focusing on an NFT as the asset, the blockchain, and the online experience.

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One precursor to NFT auctions would be eBay and other online auction sites where visitors would spot something they wanted and virtually place a bid. They would follow the auction and make incremental bids if they wanted to win and, at the end of the auction, own the item.

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But today, NFT auctions are a better and safer option because they link to smart contracts, public ledgers using blockchain technology, and cryptocurrencies. 

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When someone wants to participate in a company’s NFT sale, they’ll visit its branded auction. Companies can partner with white-label engagement platforms like Mojito to create a smooth, efficient, and successful launch.

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Once the NFT auction is ready, visitors can connect their wallets to the site and start bidding. 

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Fans want to dive into the brands they love, and collectible NFTs are the best way to fire up the community. There’s nothing better than a passionate customer base that’ll move your brand forward. And NFT auctions supercharge that movement.

How NFT auctions work

While NFT auctions might resemble a traditional or online auction, there are some clear differences. 

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Web3 technology has revolutionized the efficiency and security of transactions, and NFT auctions take advantage of those innovations.

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Smart contracts play a pivotal role in the process. They establish the parameters for the transaction and auction rules. 

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Smart contracts can define the start and end time, minimum bids, bid increments, and a reserve price. 

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When a buyer meets all the criteria as the highest bidder, the smart contract and connected wallet automatically initiate the transaction and transfer of ownership (which is recorded on the public blockchain).

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Unique ownership with blockchain

When NFTs became a big topic in the media, the first question most people asked was, what does digital ownership actually mean?

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After all, what’s the difference between a JPEG and an NFT if graphics and pictures are easily accessible online?

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Your NFT ownership is specifically tied to you—no one else can claim it. This concept revolutionized digital assets and made tangible ownership possible. The blockchain works as a public ledger that records the transaction made, and each NFT has an identifier, much like a serial number, representing one version. 

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Even if the NFT is part of a serialized collection, you own yours (similar to the millions of iPhones in existence—you physically own a single, identifiable device). 

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When you sell an NFT through the marketplace, the blockchain records that transfer of ownership.

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Types of NFT Auctions

Below are the most popular ways a brand may hold an auction:

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1. English Auction (Normal Auctions)

A foundational NFT auction requires potential buyers to bid for the asset. The highest bidder wins the NFT and becomes its owner. 

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Auctions remove the lid for the highest selling price possible by letting the market decide. But, like traditional auctions, you risk undervaluing the asset. That’s why proper execution and market distribution play an essential role in the auction process. 

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You can expect an auction to look like the following: 

• Starting price: $100
• First bid: increased to $200
• Second bid: increased to $300
• Additional bids: accumulated to $800
• Last bid: $950 (the highest bidder wins)
• End time: auction closed

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2. Dutch Auction

Unlike a traditional auction, Dutch auctions start at the highest price and slowly decrease until it meets the reserve price or the bidder wins the final asset. It’s designed to sell through an entire collection and, in turn, achieve the highest possible average selling price.

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In a type of reverse bidding, the going price lowers until someone makes the bid, determining the current market value.  

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The auction continues for the NFT collection, selling each digital asset. This is an excellent strategy for NFT drops. Hesitant customers can wait until they can jump in on the opportunity but at a price point they feel comfortable with.

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For example, a Dutch auction might look like the following:

• Starting price: $1,200
• Reserve price: $350
• NFT prices decrease in increments based on determined parameters
• Customers bid and purchase NFTs as the collection sells out and prices lower
• The collection starts to establish its worth
• At the end of the drop, a buyer bought the last NFT for $700 (and the collection has sold out)

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Dutch auctions test the value of an asset in a more controlled environment and offer an effective way to drop a collection. While it doesn’t have unlimited earning potential since there is a set high price, you can test consumer behavior and get the most possible within your parameters (and identify the fair sale price).

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3. Buy now

While technically not an auction with bidding increments, “buy now” offers a way to showcase a set price, and the quickest buyer can win ownership. 

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Brands can include NFTs within the marketplace ecosystem and offer an asset for eager customers and fans to immediately jump after. Brands and sellers have total control over the price.

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If you want to learn more about these types of auctions, web3 trends, and analytics, sign up to receive our newsletter with 2,000+ other agency leaders.

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How much does the average NFT sell for?

Just like any digital market, prices can drastically vary. 

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Much depends on your brand equity, the perceived value of the asset, the marketing strategy, and your customer’s passion for the brand. Thankfully, NFTs can help grow all of these markers. 

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NonFungible.com published a 2022 market report stating that the average individual NFT value in the year's first half was $823.50. On the other hand, Beeple, the digital artist, sold an NFT for $69.3 million dollars in 2021, making him one of the wealthiest living artists in the world. And just one NFT from the CyptoPunks collection can sell in the millions.

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While many factors will influence how much your brand can sell an NFT for, you can partner with a platform and service that can build your strategy and infrastructure to increase and position you for a successful and valuable launch.

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Key concepts in NFT auctions

Below is a list of essential phrases and words that may come in handy:

• Bidding process is when buyers place incremental offers for the desired NFT asset until there is a winner.
• Buy now price is the fixed price for an NFT so the buyer can purchase the asset immediately. 
• Reserve price is the seller’s lowest price for their NFT—a fixed parameter in a smart contract so the asset will not sell lower than the desired minimum price.
• Starting price is the starting price of the auction.
• Gas fees are the cost of a blockchain transaction that brands pay when minting and selling NFTs. 
• Minting is the creation of a unique NFT recorded on the blockchain. 
• Provenance is the record of ownership and transaction history of the NFT that lends authenticity.
• Royalties are the percentage original creators receive when a buyer resells the NFT.
• Allowlist is a list of wallet addresses identifying people with access to an NFT collection before it drops. 
• Drop is a limited release and minting of an NFT collection on the blockchain, often promoted as a big announcement for customers and communities.
• Airdrop is a free-to-claim NFT given by brands based on a range of criteria like high engagement, retail purchases, and event attendance.

Risks and considerations 

There are many pros to NFT auctions, but there are also risks that every brand should consider.

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While these risks exist for everyone, they multiply when brands don’t have the right partner. Mojito prevents and safeguards against many of these issues—check us out to see how you can start leading successful NFT auctions. 

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1. Financial risks

The crypto and blockchain arena is still new and cryptocurrencies and the NFT market are volatile. Brands must take responsible steps like choosing a partner like Mojito to navigate these sensitive factors.

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Mojito is a Merchant of Record and facilitates compliance, tax, fraud detection risk, and consumer technical and financial troubleshooting.

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2. Consideration for artists and creators

As brands create their collections, they should consider the culture that has fostered NFT growth within creative communities. In other words, supporting artists and developing fair parameters for NFT art auctions is key. 

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Mojito can help navigate these communities and customer expectations for your brand as Web3 experts.

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3. Security

While blockchain adds some of the best security for online transactions, bad actors still exist. Mojito arms brands with the best tools and resources to prevent avoidable risks.

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The advantage: NFT auctions for luxury brands

There are many creative opportunities for luxury brands. 

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Besides enhancing community engagement and investing in Web3’s future, brands can use NFT auctions to improve the customer experience for everyone. 

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Picture this: 

You gather your most passionate customers together, the crème de la crème, for the most exciting virtual showroom in history. 

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These customers can purchase NFTs, unlocking access to exclusive events. You present them with the best products on the market, some aren’t released yet, and others never will be—they’re only available to your NFT community!

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As your most dedicated customers explore your showroom, they can pick which products they want. They could get the physical product and a linked NFT when they purchase it. 

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Your customers can then spread the word on social media about how they’ve experienced their favorite brand—intertwining luxury products, digital art, and a vibrant community.

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These moments and opportunities spark incredible movement and word-of-mouth opportunities for expansive ROI. 

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Once customers embed your brand into their digital lives, it paves the way for other Web3 opportunities, like a metaverse where communities can build relationships virtually and talk about the brands they love.

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Additionally, luxury brands can add a new revenue stream within the secondary market—earning royalties when an NFT is resold. 

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Luxury brands can position themselves as innovative leaders, driving the future for their market and immersing their customers in an evolving digital landscape. 

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How do I start an NFT auction for my brand?

As more consumers expect brands to participate in NFTs, brands should shift towards the future and cement themselves in tomorrow’s economy. 

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Starting an NFT collection involves creating artwork or a digital asset, minting it, and distributing it on a marketplace. It also includes strategic community components like nurturing the owner base and offering airdrops, perks, or events. 

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A lot is going on in this whirlwind of a sector and you don’t want to delay until it’s too late.

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That’s why we recommend partnering with someone who masterfully executes successful NFT projects and communities for the largest brands in the world. 

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This way, you can trust that it’s done well, maintained, and helps grow your brand and strengthen customer loyalty. 

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Mojito facilitates NFT auctions so you and your customers can experience the best Web3 auction. 

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We merchandise and monetize your digital assets through dynamic drops. You can launch your NFTs with the best marketplace, seamless checkouts, community features, robust API integrations, and more.

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Mojito offers the top features for successful NFT drops and communities:

• Primary marketplace API 
• Secondary marketplace SDK 
• Multiple types of auctions
• Sophisticated bidding features
• Compliance AML
• Crypto payments 
• Fiat payments
• Web3 e-commerce 
• Web3 marketplace
• NFT auctions

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Click here to learn how to customize your NFT drops with the best tools available. Onboard, engage, and monetize your community.

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Curious to know how Mojito enables brands to increase engagement with earned NFTs? Dive in below to learn about our recent collaboration!

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The Tampa Bay Rays and their affiliate soccer team the Tampa Bay Rowdies partnered with Mojito to improve community engagement, increase revenue, and foster a stronger sense of community with season-ticket members via an earned ‘digital fan pass’. The project offers free NFTs for season ticket members, which can be used to get discounts in the stadium all season long.

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We are happy to announce that our product delivers valuable insights into the drop and has achieved impressive results:

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💻 Analyze data to measure the success of onboarding members to web3, increasing sales, and generating excitement for season ticket holders.

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🔐 Incentivize engagement by offering private showings for away games and other local rewards to NFT holders.

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🤝 High participation, with 60% of members claiming their free NFT.

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💰 A net increase of over 500 unique transactions at 10 different stands during the first half of the season.

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📈 Boosted revenue from in-stadium sales of food, beverages, and merchandise.

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Mojito is designed so any brand can effortlessly launch a Free Earned NFT drop for your community using our no-code templates. Or use our powerful SDK & APIs to build your own custom Earned NFT experience.

NFTs have already revolutionized the way we think about digital ownership and creativity. But now, a new type of NFT is taking the world by storm: dynamic NFTs. Dynamic NFTs are digital assets that can change over time, so the artwork, music, or other asset associated with the NFT can be updated or modified after it's minted. This innovative technology opens a whole new world of possibility for the way an NFT can be utilized.

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In this blog post, we will explore the impact of dynamic NFTs on the NFT landscape, and discuss the benefits of dynamic NFTs for creators and collectors to explore the innovative ways that dynamic NFTs are being used today.

What Are Dynamic NFTs

Imagine having a digital asset that transforms over time, reacting to real-world happenings or interactions from users. Dynamic NFTs bring a whole new level of excitement by changing how they look, their traits, or even behavior to create immersive experiences that seamlessly blends art, technology, and interaction.

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This kind of flexibility and adaptability is especially valuable in industries like commerce and luxury, where customer engagement is key. Brands can easily refine tokenized assets or even completely transform their visual appeal, offering a service that caters to evolving demands.

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Capabilities of a Dynamic NFT

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Update Metadata

Brands are dynamic, and their messaging needs to evolve alongside them. Thanks to Mojito, the power to modify every aspect of an NFT is at your fingertips. Whether it's altering descriptions, attributes, or other particulars, this can now be done effortlessly. The days of being confined to the initial creation are over.

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Keep your blockchain assets up-to-date, perfectly aligned with your brand's growth and evolving message. What's remarkable is that you don't need any coding experience to make these updates, ensuring that the process remains accessible and user-friendly for everyone involved.

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Changing NFT Art

Visual aesthetics are a driving force behind an NFT's perceived value. The innovation of dynamic NFTs provides brands with the unique capacity to effortlessly modify or revamp the artwork of their tokenized assets.

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This capability proves highly advantageous for brands wanting to align NFT visuals with shifting seasons, limited-time collaborations, or a fresh visual identity. This feature is particularly useful for brands that want their NFTs to reflect seasonality, limited-time collaborations, or simply a revamped aesthetic.

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How can I get started with these tools?

For Developers: Our Dynamic NFT API offers a potent toolbox for developers familiar with programming. Backed by comprehensive documentation and robust support, seamlessly integrating and managing Dynamic NFTs becomes a breeze.

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No Code Users: The age of no-code solutions is here, and Mojito is at its forefront. With intuitive no-code tools, brands can mint and manage Dynamic NFTs with a few clicks. No programming knowledge? No problem. Mojito ensures that the world of NFTs is open to everyone, regardless of their tech proficiency.

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Jumpstart your journey with Mojito: In offering unparalleled flexibility in managing blockchain assets, Mojito seeks to give your brand the tools to tweak the specifics of your NFT, give it an entirely new look or do something creative that we haven’t considered.

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In today's digital era, a regular loyalty program just won't cut it anymore. With Mojito's membership and loyalty offering, your brand can now personalize, engage, and reward customers in ways that are truly exciting. It's time to connect with your community in a whole new way, boost customer lifetime value, strengthen that sense of belonging, and even add some fun gamification to your current rewards setup!

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Signup for news, trends and analysis on tap. Join 2,000+ brand leaders going deeper into web3

But what does this mean for your brand?

‍Onchain Loyalty Points:

Simplify your web3 rewards program by giving out membership passes that update loyalty points automatically whenever customers engage with your brand or redeem rewards. The added bonus? The evolving NFT artwork highlights tiers, fueling engagement!

Personalized Token-Gating:

Provide customized experiences and rewards based on thorough engagement data from web2 and web3. By utilizing this data, you can restrict access to websites, apps, games, and events to pleasantly surprise and delight your members.

Memberships/Subscriptions:

Sell access passes with automatic expiration dates based on metadata. Passes can be kept after expiration for limited community space access or re-entry discounts, or offer a subscription fee or extension of the expiration date to retain access to members-only spaces.

Physical x Digital Enhancements:

Use NFC technology to combine physical experiences with digital ecosystems through "proof of proximity" engagement campaigns. This delightful user experience allows for NFC-enabled spaces, objects, and garments to be used with digital reward schemes, enhancing real-world engagement.

Gamify and Engage your Audience:

Our platform offers seamless integration with existing systems through APIs and SDKs, allowing for easy access and utilization of loyalty program insights and analytics. Mojito's user-friendly web 2.5 wallet provides consumers with activity feeds, loyalty point tracking, and an engaging rewards UI, ensuring a smooth and enjoyable experience for anyone.

Ready to unlock the full potential of web3 consumer engagement?

Contact Mojito to find out how your brand can foster deeper connections, enhance customer loyalty, and create unforgettable experiences that leave a lasting impression.

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Web3 applications and tooling is rapidly evolving as the industry matures. The last two years have ushered in a new era of adoption by global brands and customer engagement. Amidst this shift, Wallet-as-a-Service (WaaS) is emerging as the crucial bridge for mainstream users to seamlessly step into the world of Web3 and set up their first on-chain ownership of digital assets. This is how the biggest Web2 brands including Sotheby’s to Nike are stepping into Web3. 

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It’s not a revolution, it’s an expansion: new channels, new revenue, increased brand value and loyalty. Set up a Web3 Wallet with email &/ phone number for your customer or login with 193 other wallets via Wallet Connect, Metamask native. This “Web2.5 approach” offers a seamless blend of non-custodial and blockchain-verified transactions, so top brands can effortlessly engage their existing audience while also tapping into the vast potential of web3 natives.

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^{The Challenge: Complexities of Web3 Wallets}

Web3 wallets are essential in offering users control over their data and assets. However, the technical intricacies of setting up and managing these wallets can be an obstacle for mainstream users. 

Mojito stays by your side as your brand navigates this new territory by empowering you with our unique Wallet-as-a-Service.  We manage the complexity, security and risk of Web3 so that you can focus on creating experiences you want for your customers while experimenting with your web3 strategy.

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Branded Wallets  

Your company wants to keep their brand front and center - now you can, with a Web3 Wallet that is branded with your logo, colors and name. Mojito allows you to create a branded wallet, for example “BobCo Wallet.” This means your customers web3 wallet will always have your brand name and your customer can access other parts of Web3 with your web3 wallet. 

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Everything is configurable. That wallet can be 

• limited and only available on your website (we call this “walled-garden)”
• available anywhere a Web3 wallet is available (use it to login, like O-Auth) 

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Your tools, Your Way

Armed with Mojito's SDK, you can create new, robust Web3 wallets for your consumer, and facilitate transactions using crypto or credit cards through the Mojito Payment Mixer, while offering logins to a wide range of existing digital wallets. Integrate digital wallet data into your existing data and reporting infrastructure to  generate insights on spend habits, consumer preferences, and more. We offer a comprehensive solution to help your brand dramatically enhance or transform  loyalty strategies and bolster customer engagement, so that you can generate greater LTV than ever before'. 

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Leveraging Mojito's WaaS: Your Enhanced Customer Engagement Strategy

By incorporating Mojito's Wallet-as-a-Service into your systems, you don't have to worry about the technical, legal, and support complexities of Wallet-as-a-Service. Easily onboard mainstream users with enriched Web3 experiences, process diverse payments swiftly, manage wallet functionalities natively, and efficiently split royalties from transactions using Mojito's Payment Splitter.

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Broadening Your Reach with Mojito's WaaS

Your brand is exploring, working and experimenting with Web3 Tech already. Broaden your brand's reach and amplify your consumer engagement strategy with Mojito’s WaaS. This solution is at the crux of unifying a Web2 profile with onchain data to future proof your analytics strategy. Mojito's WaaS acts as a seamless bridge between Web2 and Web3 to ensure a more inclusive customer experience. Mojito WaaS gives your brand a wallet solution that’s easy to activate, spin-up and get going. Mojito takes care of all the integrations and support so that you can focus. Most importantly, it gives you a way to get into Web3 and extend your existing Web2 strategy.

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Let's chat more

Use Mojito's Wallet-as-a-Service reliable tool, to effortlessly integrate Web3 into your current strategy, and tap into its vast potential of onchain data. We designed our offering in a way that enriches the user experience and facilitates brand innovation. Explore how Secondary Market can benefit your brand with one of our brand experts

Own your entire user journey and unlock new revenue streams: Build a secondary market to connect your customers, reach new audiences, and strengthen loyalty and revenue.

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Traditional consumer brands have rarely been able to play a role in the post-purchase product lifecycle. In the digital realm, the user journey begins at initial purchase, with the always-on marketplace of web3 digital products. Mojito’s Whitelabel Secondary Web3 Marketplace enables brands to curate and own that whole product lifecycle, whether customers are buying directly from the brand initially, or through each other in the post-purchase lifecycle. Accelerate your customer acquisition, decrease CAC, and increase revenue in an ever-growing Web3 market.

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Mojito facilitates a seamless secondary market commerce experience with actions such as: 

• Buy Now
• Make Offer
• Reject Offer
• Send Counter Offer
• Accept payments Credit Card, fiat-on-ramp and Crypto²
• Enforced Royalties, royalty payment spliters & automated payouts 

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Mojito empowers you to create a direct-to-consumer secondary marketplace, offering you custom-branding on top of a data/proven and trusted user journey that allows you to tell your story through the customer experience.

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Royalty Enforced, everywhere

With Mojito, ROI is straightforward - you collect a percentage of profits via enforced royalties on all secondary sales, a feature often overlooked in many third-party marketplaces. By safeguarding your intellectual property's value, we boost customer retention and activation while adding a new passive revenue stream. Brands like Sotheby's have already experienced the potential of our Secondary Web3 Marketplace, achieving sell-out product drops upon release last week and seeing those same drops sell for multiples on Secondary Market. Their success underscores the opportunities for customer acquisition and marketplace vitality Mojito’s platform offers. 

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For example: Sothebys, In the Sothebys Marketplace - powered by Mojito - there are Superrare tokens that were minted externally and Salgado tokens that Mojito minted. These Salgado token will have royalties to artist no matter what where it will get sold. On the other hand, these Superrare tokens, by default did not include royalty to artist, but because they are being sold on Secondary powered by Mojito, artist royalties are enforced. You can update this on the fly with the Mojito Admin dashboard and when a user buys superrare tokens inside the Sothebys Marketplace, like magic the artist gets their Royalty. 

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Launch Fast No-Code Templates or Full UI/UX Customization 

Launching your marketplace is a breeze with Mojito. The no-code, themeable templates provide you a quick setup, while Mojitos UI SDK offers a more customized build. You can get your marketplace off the ground ~60% faster, creating an engaging space that drives customer loyalty and acquisition. Should you want full ability to manage front consumer experience, Mojito APIs and low level SDK get you closer to the meta while still offering you a buffet of functionality and features without having to build, secure and support. 

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Fully Customizable: build a user journey that fits in to your brand

Brands of all kinds are going to be selling digital-only products, and the only way to do that in today's world and have your consumer actually own it, is with Web3. Mojito helps brands sell digital products via Web3 infrastructure. As consumers increasingly expect direct relationships with the brands they support, the importance of owning your consumer experience with your own branding and storytelling, beyond just the primary market is more important than ever before– you want your customers to land in a marketplace that’s branded with your name and security, not a third party marketplace where you have no visibility and control over your customer experience. Mojito's secondary marketplace solution will enable you to create more touch points with your community and own the customer experience thorough the entire customer journey.

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As global consumer brands of all types continue to create digital product lines, the demand for a brand-specific secondary marketplace is growing. Mojito's solution is a logical choice to experiment with secondary marketplaces, creating more touch points for your brand-community interaction while owning the customer relationship. 

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Data that works with your corporate data infrastructure, third party tools & reporting 

Reliable data generated with Mojito’s platform can be seamlessly made available to your analytics databases and third party tools to better understand your customers across various channels. Mojito enables you to add the data your customers generate into your existing ambitious customer retention, reengagement and retargeting programs. In cases where you need data related to transactions that happened with Mojito’s tech, Mojito’s reporting on both primary and secondary marketplace revenue makes it easier to keep track and measure your total ongoing digital product revenue, well after initial sale. This also gives support teams anything they need to troubleshoot. 

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Enterprise Performane & Scalable 

Mojito is incredibly scalable and utilizes cloud infrastructure that auto scales relative to the load being placed on it. We’re happy to share load tests with our clients. We have a diverse set of offerings and are continuously adding to them. Our product roadmap is influenced by our clients and have a proven track record of delivering these at scale.

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Secure, Compliant, Data Secure  

Mojito is Soc 2 Type 1 certified and is working towards its Type 2 certification. Our security program has been structured to comply with ISO27001 and expect to receive certification this year. Mojito is not subject to GDPR given our physical location and the limited data we collect, but we do abide by such laws and respond promptly to any requests related to third party data (also in compliance with CCPA standards). We have data retention, deletion, protection and recover policy as well as policies and procedures related to encryption.  We have an in-house General Counsel and dedicated CISO who oversee the data and security policies generally and all employees receive regular training on the subjects. We also seek advice of our experience external legal counsel (Latham & Watkins LLP) when appropriate.

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Let's Chat

Choosing Mojito's Whitelabel Secondary Web3 Marketplace means investing in a secure, proven technology that boosts revenue, increases brand trust, and reduces operational complexity. Stay ahead of the curve, enhance your customer loyalty strategy, and tap into the vast potential of the Web3 era. 

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Explore how Secondary Market can benefit your brand with one of our brand experts

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^{1  Mojito must MINT the NFT to enforce royalties anywhere, for example Salgado.}

^{2  Seller does not accept credit card natively, this is facilitated via our third party vandor which is effectively a crypto on ramp.} 

Recently, wallets-as-a-service startup Magic raised $52mm from PayPal and others. This post breaks down what 'wallets-as-a-service' means, introduces similar solutions in Paper, Crossmint, Sequence, and Coinbase, and how brand and agency leaders should think about this within their broader consumer engagement strategy.

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'Wallets-as-a-service' is not about hardware wallets like Ledger for self-sovereign diehards, or self-hosted web wallets like MetaMask that require safely storing a seed phrase offline and paying your own gas. It's not for web3 natives, in other words. It's for onboarding the mainstream!

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'Wallets-as-a-service' are one of several emerging technologies that make up the growing 'web2.5' trend in general, which is about making selective decentralization trade-offs in pursuit of a seamless user experience that still delivers on digital ownership and interoperability.

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How 'wallets-as-a-service' work, and how brands and consumers benefit

If you've ever tried to set up a web3 wallet, you know how much friction is involved.

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Instead of a simple email-password, you are given a 'seed phrase' of random words that you need to write down and store offline for maximum safekeeping. This is how web3 maintains full decentralization: no one but you is capable of gaining access to your account or acting on your behalf. This is great for certain use cases when users are ready to climb the learning curve, but for onboarding new consumers to the space with sometimes free-to-earn digital assets, it's just overkill.

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Of course, the opposite of a fully decentralized wallet is a fully custodial wallet: one in which the brand owns, controls, and is liable for the users' wallets and their contents. This approach may be right for some brands (though we at Mojito often question it), but for others looking for a middle ground: 'wallets-as-a-service' was born.

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Wallets-as-a-service use an underlying technology called multi-party computation.

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Instead of asking consumers to store their own private key with a seed phrase offline, the private key is 'sharded' into three fragments of data, two of which are needed in order to control the wallet. Each is encrypted and authenticated uniquely:‍

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1. Email/SMS -- One fragment is tied to the consumer's email or phone number, and requires proof of ownership through a one-time password like 2FA.

2. Local Device ID -- Another fragment is tied to the consumer's physical device or browser that was used to create the wallet.

3. Vendor Solution -- The third fragment is stored by the wallet-as-a-service provider with a range of security options, some better than others.  

The consumer can operate the wallet with two of the three shards, while the wallet-as-a-service company can never unilaterally gain control.

THIS IS ALL IN THE BACKGROUND.

The consumer is never aware or bothered by any of this. This makes for a seamless wallet experience where users don't pay gas, and brands don't take on unnecessary risk or liability because the wallet is also non-custodial.

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Our 0.02 ETH 🍃

Mojito has met with all of these teams, tried all of their tech, and used multiple in the wild with customers.

• Magic -- The most well-funded, largest headcount, and longest tenured team, however, also the priciest and most centralized in terms of security.
  
  
• Paper -- The fastest, most secure, and most white-labeled product we tested on the market with the most flexible team and approach to partnerships.
  
  
• Crossmint -- The most b2b2c focused in terms of creating a direct-to-consumer connection with their own brand and family of growing apps.
  
  
• Sequence -- The most gaming focused, and farthest ahead on smart contract wallets (ERC-4337).
  
  
• Coinbase -- Mobile-only 'wallet-as-a-service' right now, but already has one of the best self-hosted wallets with their exchange and on/off-ramps plugged in.

At Mojito, we believe the future of consumer engagement is onchain.

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‍This is important for you to know -- brand and agency leaders -- but consumers should not need to know or understand this any more than 'omnichannel'. That's what web2.5 is all about, and wallets-as-a-service are a helpful piece of that puzzle (dynamic NFTs, too!), which will continue to evolve.

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The key thing to solve for isn't your wallet provider. They're largely at parity and easily interchangeable / upgradeable. The key thing is your holistic product offering, which isn't influenced or constrained by your 'wallet-as-a-service' provider, but instead unlocked by use-case solutions like Mojito, which has wallet-as-a-service built right in.

Mojito enables brands to launch end-to-end web3 consumer engagement campaigns including wallets-as-a-service, fiat and crypto payments, free mint and paid drop mechanics, white-label secondary marketplaces, token-gating, and onchain rewards.

With Mojito, you can tailor your brand experiences for mainstream users only, web3-natives only, or both.

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As always, we love talking web3 consumer engagement with brand and agency leaders. Whether you're sourcing tech solutions with a clear scope, timeline and budget in mind, or you're just getting started, Mojito can help you every step of the way. Share your contact details and our team will reach out for an exploratory chat. Get in touch.

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‍Sign up for news, trends and analysis on tap. Join 2,300+ brand leaders going deeper into web3

NFT ‘metadata’ has mostly consisted of JPGs, GIFs, and MP4s, and the more advanced collections have traits and rarity. Critically, creators haven't changed the metadata, in some cases they even ‘froze’ it to prevent tampering or ‘rugs’ post-mint.

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But innovative brand and agency leaders are poking holes in this dogma, and starting to realize what is possible with ‘dynamic metadata’ – updating a consumer's NFT metadata over time. It’s not just about possible new artforms or content, it’s about the fundamentals of how brands and agencies leverage consumer data itself.

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“NFTs: your ticket into a brand’s action," wrote MediaMonks Web3 Director Michael Litman.
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‍‍"We’re entering an ownership era where everyone has a chance to own a piece of the action. This ownership partly lies in NFTs or digital collectibles, which can be many things—an artwork that evolves over time as users get involved, a digital object, and more.”

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How will brands and agencies personalize experiences and tailor ads in a future without cookies? How will developers create unified consumer experiences across disparate brand properties or different brands altogether? How can consumers achieve a more elevated digital experience without compromising on privacy?‍

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Dynamic NFTs may be part of the solution. It’s not a consumer-facing term by any means, but it may soon become a key piece of every brand and agency's consumer data and engagement strategy. Here’s an explainer, today’s most helpful use cases, and where we see Dynamic NFTs going at Mojito.

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What are Dynamic NFTs?

First it’s worth clarifying: What is an NFT?

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An NFT is an unique digital asset owned by a single individual or entity at any given time. This digital asset maintains its own records, too: NFT 'metadata' can reference a near-unlimited amount of content, code, and raw data. When consumers 'connect wallet' to websites or apps, the brand can 'see' what assets they own and 'read' the metadata.

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Traditionally, creators ‘froze’ or otherwise swore to never change their NFT metadata after minting. Imagine buying a physical product off the shelf, and by the time you brought it home, the manufacturer had somehow altered it completely, or even somehow ‘deleted’ it. This is why best practice was to never change the metadata: otherwise, consumers couldn't trust its lasting value.

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But then some people got creative, and wanted to play with the idea of dynamic onchain art where the work changes over time, and not only that, but changes based on signals it receives from the internet (!!). One of the earliest and most famous examples of this is the Bitcoin Volatility Art by Matt Kane that changes daily based on the past 24 hours of Bitcoin trading activity.

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Our 0.02 ETH 🍃

• Bitcoin Volatility Art dynamically updates its metadata based on recent market trends, but there's no reason it couldn't be driven by anything else. What offchain sources of engagement data would you wish to capture, reflect or incentivize onchain?
  
  
• Brands and agencies don't necessarily need to do anything other than 'update' the NFT metadata with these touchpoints, and possibly maintain an omnichannel 'consumer profile score'.
  
  
• This would then be 'readable' by any website or app to enable personalized experiences on first-party and third-party platforms. These insights have gotten people in our industry thinking….

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LaMelo Ball (NBA) - Dynamic Content

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‍In 2021, NBA star LaMelo Ball sold 10,000 digital collectibles in partnership with Chainlink, a company that specializes in bridging offchain and onchain data, with the premise that if Ball should win the Rookie of the Year award later that season, the collectibles would 'evolve in a more powerful version'. This means dynamically updating its visual appearance as well as its 'rarity', an important aspect of collectibles markets.

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Our 0.02 ETH 🍃

• Imagine fantasy sports, reality TV, or other 'live data' enhancements driving desirable outcomes in a consumer's chosen collectibles, say, during a prediction or even betting contest. What would be right for you?

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Australian Open (tennis) - Dynamic Content & Rewards

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‍In 2022, the Australian Open sold 6,776 digital collectibles called AO ArtBalls in partnership with Hawk-Eye, a company that linked each NFT to a specific area on the court and triggered dynamic updates to corresponding NFT for each match point.

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AO Artball 'lucky winners' each earned 'upgraded' NFT artwork, but also free redeemable tickets to the next tournament.

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Our 0.02 ETH 🍃

• Upgrade the artwork when relevant, sure, but add loyalty points or access to free redeemables dynamically within the same NFT metadata, and the reward is suddenly that much more real and valuable.

‍gmoney & 9dcc (fashion) - Dynamic Rewards & Community

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Crypto-native lifestyle brand 9dcc incentivizes weekend wear amongst its ambassadors through flash mini-games that generate loyalty points and is only playable if you have the NFC-chipped garment nearby (or preferably, on your person).

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Founder and CEO gmoney designed these 'network points' to be a dynamic element within the 9dcc ecosystem, stored offchain but tied to each consumer's onchain identity.

"How do you find and incentivize those fervent brand people to become bigger ambassadors? That’s what I’m trying to mess around with." @gmoney

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Our 0.02 ETH 🍃

• The future of consumer engagement is onchain. But that doesn't mean that literally all the data is onchain, public, transparent and immutable. Here we see gmoney decide to store his network points offchain for privacy but with an onchain reference (i.e. wallet, NFT pass) to leverage within his own platforms or others where he shares permission.
  
  
• This is indicative of a broader trend within web3 called web2.5 (coined by yours truly!). Rather than decentralizing everything, this term refers to applications that blend centralized and decentralized tech in order to achieve a necessary balance between desirable web3 features, a smooth and familiar user experience, and corporate risk management. This is our specialty at Mojito!

What are the brand benefits for Dynamic NFTs today?

You can’t sell consumers a better database. You need to sell applications and benefits instead. So what can brands and agencies offer with Dynamic NFTs today?

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• Onchain Loyalty Points – Distribute fan or membership passes, then increment/decrement their loyalty points ‘in the metadata’ every time they interact with your brand or redeem rewards. Omnichannel, omniplatform, cross-brand. No fungible tokens necessary. Lightest possible legal and operational lift for web3 rewards program.
  
  
• Personalized Token-Gating – Deliver richer experiences and tailored rewards informed not just by token ownership alone, but all relevant engagement data including social, ecommerce, and IRL. Gate websites, apps, games, and events. Generate and distribute additional points at the point of ‘check-in’ for surprise and delight.
  
  
• Memberships/Subscriptions – Sell time-access passes with expiration dates in the metadata. Consumers may keep their passes after expiration for limited access to certain community spaces or re-entry discounts, but to retain access to members-only spaces, they would need to pay a subscription fee or simply ‘buy more time’ on their expiration date. Token-gates would read not just the presence of the pass but the expiration date within its metadata to determine whether to let the user through.
  
  
• Physical x Digital Enhancements – Pair NFC-enabled spaces, objects, and garments with digital rewards schemes to drive IRL engagement and a bridge from geo-constrained, time-limited physical experiences to boundless, timeless digital ecosystems. Making a bit of a comeback, the humble NFC chip delivers a more delightful user experience than QR codes, and is much more technically capable, too, meaning many clever ways to ‘read’ and ‘update’ a user’s NFT metadata through ‘proof of proximity’ engagement campaigns

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"Web3 wallets are the new cookies but the difference is that, this time, it belongs to the customer," said Salesforce SVP Marc Mathieu.
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‍"The big difference is that these people are no longer just consumers, they want to be co-creators co-innovators, collaborators, and co-beneficiaries.”‍

Here's how to get started with Dynamic NFTs for your brand:

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1. Identify 2-5 key engagements you want to track and reward digitally.
2. Define 1-2 valuable rewards and thresholds for engagement.
   
3. Contact Mojito to get it all done, on budget and on time.

As always, we love talking web3 consumer engagement with brand and agency leaders. Whether you're sourcing tech solutions with a clear scope, timeline and budget in mind, or you're just getting started, Mojito can help you every step of the way. Share your contact details and our team will reach out for an exploratory chat. Get in touch.

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‍Sign up for news, trends and analysis on tap. Join 2,300+ brand leaders going deeper into web3

‍Image credit: RTFKT x Nike Cryptokicks

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Here’s an explainer on Redeemable NFTs, today’s most helpful use cases and build considerations based on a number of active projects and exciting conversations with brand leaders at Mojito.

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What are Redeemables?

Redeemable NFTs are a digital token that can be exchanged for a physical good or service in the future (e.g. physical items, pre-sales, tickets, merch, physical artwork, special offers, access). Along with RWAs (real-world assets) and asset-backed NFTs, these terms are all used interchangeably, so for the purposes of this explainer, we’ll call them Redeemables.

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Redeemables are gaining significant traction as a way for brands to seamlessly tie together physical goods and digital twins, giving the brand enhanced engagement/loyalty opportunities as well as net new revenue streams.

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What are the brand benefits of offering Redeemables?

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• 🛍️ Offers consumers tangible value | This makes a digital NFT more attractive to potential primary and secondary buyers because they can at least peg the value of the NFT to something tangible in the real world. 
• 🖼️ Better liquidity and optionality for consumers | Especially for traditionally illiquid and siloed markets like art, handbags, sneakers, watches, or wine & spirits, NFTs offer brands and buyers more transparency and optionality when buying and reselling. 
• 💹 Secondary market revenue for brands | Every time the Redeemable NFT (which represents the physical good or service onchain) trades hands, the brand can receive a piece of that sale through a royalty enforced on-platform and possibly beyond. 
• 💰New revenue streams for brands | Tap royalties from the secondary market. Generate incremental revenue from preorder trading. Incentivize stockpiling with future rewards and benefits.
• 🧐 Authentication to ensure a premium product experience on the secondary market | Redeemables can also offer authentication assurances to ensure an excellent Brand experience in the primary and secondary. Examples include a Certificate of Authenticity (e.g. Nike Air Force 1s or Ticketmaster tickets), or storage assurance (e.g. temperature, packaging, light for Wine) or insurance certificates (luxury products).  
• 👀 Open-source visibility of redemption events | When a redemption occurs onchain, one NFT is submitted to the brand and another NFT from a 'redeemed' collection' is received in its place. This method enables distinct clarity between Redeemed and Unredeemed NFTs onchain while retaining the ability to market to users based upon onchain data and assets.

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What are some notable use cases? 

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Retail 

Nike’s Cryptokicks are digital collectibles that can be redeemed for their physical counterpart sneakers in a process RTFKT calls ‘Forging.’ During Nike x RTFKT’s Forging events, "holders of eligible digital collectibles can redeem for limited made-to-order physical products. Forging events last for a limited time, so always check for dates and set reminders."

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Premium fashion

Cristóbal Balenciaga’s ‘To the Moon’ drop came with redeemables such as Balenciaga gear, gift cards to designer Brands and even the 70-year-old drawings by Cristóbal.

Sport

Every Australian Open tennis AO ArtBall NFT was redeemable for 2 tickets to the Australian Open tennis grand-slam in 2023.

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Premium beverages

Glenfiddich single malt Scotch whisky launched 200 limited-edition ‘Chinese Lunar New Year NFTs’. Each NFT is linked to a physical bottle of Glenfiddich 21 Year Old Gran Reserva single malt and serves as a digital receipt verifying ownership and authenticity. NFT collectors can hold it, resell on an NFT marketplace, or redeem it for the physical bottle.

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Considerations for creating Redeemables

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What happens to the NFT when someone redeems the real-world asset? In short, it depends on how the brand builds it.

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A number of options are possible with differing pros and cons, with one winning approach emerging. 

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1. 🔥 ‘Burn it’

The NFT is burned when the consumer redeems the physical good or experience. The NFT is no longer functional or ‘owned’ by anyone.

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Pros: simplest to execute. campaign is over.

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Cons: ‘Burning NFTs’ removes people from your token-holding community, which brands very typically shouldn't want to do.

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2. 🛍️ ‘Trade it in’‍

Consumer sends the NFT to the brand’s treasury wallet, and once received, the brand ships them the physical item. The NFT is now owned by the brand.

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Pros: the brand owns the NFT supply and could choose to resell to other holders at a later date.

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Cons: the brand loses a valuable customer, the consumer is no-longer invested in the success of the NFT project, only enjoying the lifetime value of the physical item. It signals that the brand sees more value from owning it than the customer does.

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3. 📭 'Stamp it’

When the consumer redeems the physical good, the NFT metadata is updated to distinguish [REDEEMED] v [UNREDEEMED].

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Pros: Consumers are still invested in the success of the NFT project. Maintaining ongoing onchain continuity is a priority for both the brand and holders.

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Brands get access to a secondary market, authentication assurances, new revenue streams and opportunities to create imaginative loyalty tiers that build LTV.

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Consumers get to choose whether they claim the physical item. Secondary buyers get access to a liquid open marketplace with assurances the NFT will come with the right to claim the physical item.

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Cons: Depending on the secondary marketplace experience, consumers may not be able to decipher between the REDEEMED and UNREDEEMED markets and offerings with this technical method, which can result in buyer regret and negative sentiment from purchases of NFTs where the physical item was already redeemed. This is easily managed by issuing a second token. How? Read on:

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Serving up a ‘Stamp it’ example from tennis

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To crystallize the ‘Stamp it' concept, we’ll unpack a live brand case study where physical items were linked to the NFT, in this example as ‘tickets’ to a live event.

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For any brand leader in another vertical, the ‘tickets’ could easily be interchanged with any physical POS item like premium handbags, sneakers etc. 

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NFT Collection 1 

The tennis grand slam event Australian Open launched an NFT project with 6776 NFTs in Collection 1 uniquely numbered #0001 - #6776. The artwork from Collection 1 are tennis balls wrapped with art hence AO ArtBall.

The Redeemables

Every Australian Open NFT from Collection 1 gets to claim 2 tickets to the Australian Open 2023 finals week starting 20th January 2023, for free, redeemed via a simple token-gated experience.

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NFT Metadata on Collection 1 was updated

When consumers redeemed their tickets, the NFT metadata was updated to show REDEEMED. The metadata makes up the NFT and is traceable on the blockchain.

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Additional NFTs from Collection 2 are issued to holders 

At the same time, for consumers who redeemed the tickets, the Australian Open issued them a new NFT from Collection 2 [CLAIMED], directly to their wallet. Collection 2 NFTsfor example could have different artwork, a Certificate of Authenticity (COA) that provides extra validation that the Ticketmaster tickets are genuine.

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Why? This is two-fold

1. The Brand, Australian Open can isolate which NFTs are associated with [CLAIMED] tickets, distribute tickets to holders via Ticketmaster, track trading data, the floor price of Collection 1 [UNCLAIMED] vs Collection 2 [CLAIMED], reward this new tier of engaged customer i.e. the first claimers of Redeemable tickets, proof of attendance etc; and
2. Potential secondary NFT buyers on the secondary market can see which NFTs have tickets [UNCLAIMED] from collection 1, make a bid with confidence they have the right to receive the 2 tickets. The COA can travel with the tickets.

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Pre-order visibility

Australian Open can forecast token holder attendance at the stadium gates and revenue holders may spend in the precinct; and has enriched data as to which NFT holders are most likely to attend their live experience. 

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Our 0.02 ETH 🍃

We recommend Brands considering adding Redeemables to their loyalty stack issue a second NFT when the physical item is claimed so potential customers can easily distinguish between which NFTs on the secondary have had their physical item claimed. Brands get to track trading data between claimed and unclaimed redeemables and reward a new tier of engaged customers to grow LTV.

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The future of Redeemables with Mojito

We’re weeks away from launching a live example of Redeemables, we can’t wait to share with you. If you’re interested in building Redeemables into your loyalty stack? Get in touch

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Image credit: Vanessa Bucceri

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At the start of 2023 Mojito made some bold predictions for web3 adoption this year. As June is around the corner, let’s see how we are doing...

🍃 The term ‘NFTs’ is replaced with ‘Digital Products’ 🟢 On track

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More loyalty-focused programs are gaining traction (e.g. Starbucks Odyssey, Nike .Swoosh), new giants have launched memberships (e.g. Adidas ALTs) and major sporting IP has delivered 1m+ claims (e.g. ‘Inside the NBA' on TNT watch-to-earn program). Almost none of these global initiatives are using the term ‘NFT’s’, but rather things like ‘digital collectible.’

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Every single loyalty program in the future will use digital tokens (NFTs) to capture, incentivize, and reward consumer interactions, and we will continue to see focus on loyalty points rather than the NFT tech and terminology behind it.

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🍃 The Rise of Physical Asset-Backed Tokens 🟢 On track

A number of brands launch digital twins, NFC chipped products and there's significant growth in builders within tokenization of physical assets. Asset-backed tokens are being 'redeemed' for physical items ('Redeemables') with increasing frequency, from KITH x Invisible Friends campaign, Nike’s Cryptokicks to Avenged Sevenfold ticket access.

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🍃‘Connect Wallet’ Across Major Websites  🟢 On track

There’s a shift towards brands offering token-gated accounts as secure user authentication, that's invisible to the customer. Instead of managing different accounts and password, with web3, customers are starting to connect a wallet to verify their membership status and gain access. Customers can get access to subscription-only content (e.g. TIMEPieces for TIME subscriptions) and potentially other future rewards (e.g. Mastercard Music Pass offering AI generated experiences).

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🍃 Web3 Goes Web2.5 🟢 On track

Web3-native projects are exploring the transmedia franchise landscape to attract new ‘non crypto’ fans into their universes. e.g. Pudgy Penguins launched Toys on Amazon, and World of Women launched WOWGs Monopoly Game. Metaverse Web2.5 has seen major brand activations to scale traffic and DAUs (e.g. Roblox x Gucci x Vans and Coachella in Fortnite)

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🍃EVM Chains Will Dominate Non-EVM Chains 🟠 Too early to call

Brands continue to choose Polygon and Ethereum for their web3 activations and loyalty programs as a clear winner. That being said, with the excitement of ordinals, Asprey Bugatti launched a few weeks ago with a Bitcoin NFT project. EVM chains have faired better in the bear

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🍃The End of the 10k PFP Projects And Money Grabs 🟠 Too early to call

It seems to be the end as we know them. Web3-native 10k PFP projects solely focused on floor price and speculation, but yet to deliver tangible utility at scale, have struggled. Large scale NFT launches have been reframed. Nike .Swoosh is a new "community experience" that sold 50,000 on May 24th. Doodles is a "media franchise." Boss Beauties is a "media + entertainment brand." Deadfellaz is a "collection + metaverse brand." 

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🍃Brand-Hosted Secondary Marketplaces 🟢 On track

Major brands (e.g. Sothebys, Amazon, Mattel) and bluechip NFT projects (e.g. Art Blocks, 9dcc) have launched Direct-to-Consumer marketplaces with enforceable royalties and an elevated user experience.

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🍃More NFTs for DAO Membership Management 🔴 Few use cases

DAOs have fallen back in their promise to be the governance model of choice. Notable exceptions include the mighty Nouns DAO that have been funding wide ranging CC0 projects to accelerate the Nouns brand.

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If you'd like to explore any of these use cases, contact us

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Image credit: Bluesky

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What is Bluesky ?

Bluesky wants to enable a marketplace for media algorithms that users can vet and choose from in order to have total control over their feed, instead of it being decided for them by a centralized corporation. 

The Why

Bluesky’s CEO Jay Graber has said that the idea is to “build a platform where a centralized figure cannot censor.”

Similar brands we're tracking

A number of Twitter alternatives have spun up recently, including Mastodon, Farcaster, and a rumored one coming from Facebook. They all talk about consumer control over what they see, and for publishers to be free from censorship, through the use of blockchain. 

Our 0.02 ETH 🍃

While media brands like NFT Now and TIME are experimenting with ownable access passes and digital rewards as enhancements to their model, social media platforms like the above are betting that decentralized control over content recommendations will increase consumer satisfaction, trust, and ultimately, stickiness. How these worlds intersect at both the user experience level and the data interoperability level will be fascinating to watch play out, because clearly media brands and social media platforms will still need each other even in this new web3 world. 

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Covered by Mojito, the web3 consumer engagement platform. Empowering brand leaders with powerful tools to drive consumer engagement, sales, and loyalty for all levels of web3 maturity.

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Image credit: NFT Now "Web2 Media Is Broken. The Future of Media Is Tokenized"

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‍What's the trend?

Tokenized media envisions more community-centric models that redefine the audience-publisher-advertiser relationship in a web3 environment.

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Tokenized media brands are offering consumers ways to freely ‘collect’ content they engage with, earning loyalty points in the process, as well as selling NFT access passes that can act like a paywall, but can also enable additional token-gated benefits both on and off their own platform. 

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Simultaneously, these brands are opting out of onsite programmatic advertising and cookie tracking in order to better align incentives and trust with their community. The vision is a more engaged, loyal and monetizable community for media brands as they look to diversify revenue away from obsolescing Big Tech platforms. 

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Meanwhile, the consumer is rewarded for their engagement, participation, co-creation, and data.

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‍What’s fueling the trend?

To fully appreciate the tokenized media opportunity, we’ll quickly recap the push & pull drivers:

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1. After transitioning from programmatic ads to subscriptions over the past several years, web3 is the next evolution in direct-to-consumer media models.

The ROI on programmatic advertising doesn’t work for publishers and consumers. Most tech-forward publishers are prioritizing direct-to-consumer revenue models through subscriptions, as their next lever for growth. Media subscription offerings today are binary, the consumer pays monthly for an access tier of content (i.e. number of articles, unlimited access). There’s little imagination and minimal consumer incentives for engaging with the content, even participating in the editorial process itself. Direct-to-consumer models have to prioritize the consumer engagement layer to secure retention and drive LTV. Tokenized media is the next generation of DTC media.

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2. Web3 enables consumers to engage with publishers with more intentionality and relevancy

Programmatic advertising works, in part, by using web2-era cookies to track consumer behavior across different websites, enriching the predictive quality of the recommended ads. At least in theory. In practice, they create immediate friction in the user experience and are used in unknown ways with little if any perceived benefit.

Conversely, when a consumer 'connects wallet' and shares the onchain data it has accumulated from different experiences, this could in theory provide the same level of rich data on a new user as cookies do while representing a much more valuable opt-in because the consumer knows exactly what data will be shared. Brands will offer consumers options to share their data in more intentional ways, and may even incentivize data-sharing through rewards or benefits.

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3. Web3 can enhance the content experience layer   ‍

Some executives believe media distribution has become too focused on numbers, traffic and ad sales instead of creating differentiated, valuable content for their audiences. Tokenized media rewards loyalty and can unlock added revenue streams beyond the monthly content subscription from deeply engaged consumers invested in their success. Web3 can provide the infrastructure layer for consumers to more actively participate in the editorial or curation decisions with the publisher. Instead of running Twitter polls with limited transparency, consumers could co-decide on which stories a reporter covers, or co-create it with them, and then co-own the article onchain (a model crypto outlet Coinage adopts). 

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4. Token-gated accounts as secure user authentication

Instead of managing different accounts for every media brand, with web3, consumers can connect a wallet to verify their membership status and gain access. This sees the user get access to subscription-only content and potentially other rewards for further engaging with the media company e.g. article reads, likes and shares, event attendance, co-creation etc.  

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Brand use cases we're tracking

1. @TIME TIMEPieces pioneering collectibility of TIME cover artworks that serve as a membership to the publication (TIME) 
2. @NFTNow Now Pass ushers in a game changer media model, for the future of tokenized media (NFT Now)
3. @Bluesky Dorsey-backed twitter competitor aims to give users algorithmic choice (Techcrunch)
4. @GQMagazine release first NFT collection. ‘The GQ3 Issue 001: Change Is Good” including a magazine subscription (Coindesk)
5. @CoinageMedia Co-owned media Coinage paved the path to subscriber-led crypto journalism 
6. @Meta’s Mastodon-compatible decentralized Twitter rival launching in June (Beincrypto1 / Beincrypto2)
7. @Okaybears NFT project create Okay Ad Network (a16z)
8. @Dirtyverse wants to be your neighbourhood’s third space (Coindesk)
9. @137pm culture token promises access and collabs with cultural and brand icons‍
10. @Coindesk Microcosms NFT created multi-tiered access to conference Consensus (Coindesk)‍
11. @Overpricedjpegs podcast NFT drop came with a OPJ Gin, meetups and studio access to pod interviews in studio (Opensea) 

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Our 0.02ETH 🍃

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Media brands have been searching for a sustainable business model since the internet disrupted print and TV. The industry's decade-long trend away from ads toward direct-to-consumer does align nicely with web3's emerging use cases within brand loyalty and incentivized retention. Whatever form the tokenized media trend ultimately takes, it's important to follow for two key reasons: user experience and consumer data. With next year's planned obsolescence of cookies, media brands have a deadline to jump to something new. Thankfully, there are already a few pioneers showing them how it could be done!

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Covered by Mojito, the web3 consumer engagement platform. Empowering brand leaders with powerful tools to drive consumer engagement, sales, and loyalty for all levels of web3 maturity.

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Image credit: TIME

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First major media brand to pioneer token as a digital subscription

TIME was the first media giant to experiment with web3 and has a number of marquee initiatives. TIMEPieces genesis collection, themed “Building a Better Future,” featured original artwork from more than 40 influential artists. Owning a TIMEPiece will also unlock unlimited access to TIME.com through TIME’s 100th anniversary in 2023, exclusive invites to TIME’s in-person events, and access to special digital experiences. Owners of multiple pieces will also be extended additional opportunities. TIME was the first media brand to add Connect Wallet, validate TIMEPiece NFT ownership and serve the TIME subscription content seamlessly along with a membership rewards program.

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The Why

"While many of the NFT drops that have happened to date within the media space have focused on high-end single editions or multiple versions of collectibles, the release of TIMEPieces marks the first time a major media brand has taken on a Web3 approach toward building community and using this technology as an innovative extension of our current Digital Subscription efforts,” said former TIME president Keith Grossman at the last year's launch.

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Our 0.02ETH 🍃

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Covered by Mojito, the web3 consumer engagement platform. Empowering brand leaders with powerful tools to drive consumer engagement, sales, and loyalty for all levels of web3 maturity.

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Image credit: NFT Now

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The Why 

Tokenized media brand NFT Now believes the future of media is community-centric business models. The recent launch of their Now Pass and Now Network is the company's most significant web3-native move to date.

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NFT Now: “We believe that media companies shouldn’t serve you ads. They should serve you opportunities.”

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“The Now Pass is that first step for us in pioneering this community-centric media model, and starting to really redefine what the role is for a media brand in a Web3 environment,” said NFT Now Cofounder Matt Medved. 

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'Now Pass' utility

The 'Now Pass' grants holders access to:

• A Discord channel and “Alpha Chat” to share news and insights between members.
• Attend events, such as the NFT100 gala and an inaugural community meet-up held in New York during NFT.NYC.
• A membership portal where holders can earn rewards for their participation in the ecosystem. 
• There are plans for an onchain voting system for content curation.

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Results

NFT Now offered their Now Pass for $500 each, and sold out of their 2,750 total supply in less than 48 hours, raising $1.1 million. That price tag is the same as The Information's annual subscription, 50% more than the New York Times, and 10x more than the Wall Street Journal.

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Extracts are sourced from NFT Now:

• ‘The Now Pass Sold Out. Here’s What’s Next’  
• ‘The Now Pass Mint Is Officially Live’ 
• ‘Web2 Media Is Broken. The Future of Media Is Tokenized’
• @NFTNow tweets

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Tokenized media brands we're tracking

137pm’s culture token promises access and collabs with cultural icons. Dirt aims to break down Web2 media regimes by publishing content from a network of freelancers, using blockchain infrastructure to keep media decentralized.

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Our 0.02ETH 🍃

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NFT Now has been deliberately building community since day one, and has strong support from builders and creators throughout the space (including us!). So it probably came as no surprise to the web3 community that NFT Now were able to sell 2,750 tokens, even at an elevated price point compared to traditional media. But how does this scale? How do the economic considerations of supply and demand come into play when it comes to making access to media brands liquid? Is the business model predicated on one-off sales of tokens, or will it mature to something more steady and reliable like subscriptions today? What forms of incentivized participation do communities actually want, and which will drive real ROI? Will royalties be a significant revenue stream, and if so, what's the right growth strategy there? If NFTs really could behave like cookies one day, and power a new-era of digital advertising, what specific steps should tokenized media brands being taking today to be poised for that future later? It's clear to us we are in the earliest innings here with many emergent possibilities ahead. What is clear is that media brands are motivated to experiment, and as we all know, necessity is the mother invention.

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Covered by Mojito, the web3 consumer engagement platform. Empowering brand leaders with powerful tools to drive consumer engagement, sales, and loyalty for all levels of web3 maturity.

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Admit One and 9dcc founder shares his web3 engagement playbook and lookahead

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As we continue to be inspired by innovative web3 brands and creators we meet and work with, we've committed to sharing the stories of the pioneers who shape, challenge, and inspire us on their journey to breaking new ground.

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‍Mojito Insiders is a series of interviews with these changemakers. To kick the series off, Mojito cofounder and COO Matthew caught up with gmoney on the eve of his latest activation at NFT.NYC. 

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More mint 🍃 for your mojito?

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Fans of gmoney’s and Mojito’s work can collect this exclusive interview as an NFT. Claim free and try the Mojito platform in the process.

This Mojito Insiders mint and other Mojito collectibles grant access to members-only resources, insider talks, exclusive events and early access to brand leader workshops.

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Created for brand leaders by brand leaders, as serial web3 entrepreneurs building for 7+ years, from web2 brand beginnings. More to come.

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Meet gmoney

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gmoney is a web3 icon, enigma, founder, fashion house creative director, and cutting-edge technologist. Known by his alias and recognized by his rare cryptopunk PFP, this web3 defining-creator is founder of Admit One (a membership-based group of NFT collectors) and 9dcc (a web3-based fashion label that seamlessly integrates tech). Few people have pushed web3 consumer engagement as far as him, but stepping back to take stock of it as we do in this interview, you can start to see a clear (and genius) playbook at work.

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Q:  Your approach to web3 has been very authentic and web3-native, but you’ve also had tremendous ‘crossover’ success with major brands like Visa, Prada, Adidas + more. What’s the secret?

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It’s because of my credibility and authenticity that I’ve been able to navigate it well. If I was talking to brands that didn’t want to listen to me, but just wanted to use me to sell something…. I haven’t ‘sold out’ and that gives me a lot of credibility and authenticity. 

The brands that are really interested in the space, come to me.  I’m not having conversations with people that think web3 is stupid, it’s with people who are interested. I’m not cold-calling. Most of my brand partnerships come from warm intros.

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Q: What do you find are the characteristics of brands who get web3?

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People within the organization that are really deep in the space, across the board. People who believe in the ethos, pushing for it internally. If brands don’t have that person internally, then they’re not interested.

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Q: Now let’s talk about your brands: gmoney, Admit One and 9dcc. Two years ago you were giving POAPs to people you met at industry events and parties. What's been your inspiration and iteration process?

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It started originally with a POAP scavenger hunt in 2021 at Bitcoin Miami. I paid somebody to stand at different locations, hand out POAPs. For me it was an experiment. My thought process was, when a celebrity is ready to do something like this, they can’t fail. It needs to go off perfectly. They’re not going to push the boundaries of the tech, so I needed to do it. 

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At the time, I had 12,000 followers, so I thought enough people would show up, maybe not. About 70-80 people collected POAPs, it was a cool use case, people connected, they formed a fund together after the event, friendships were formed. As I thought about that, I said cool, how do I do this going forward? 

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By allowing people to have proof that they met me, I created this onchain social graph. 

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Didn’t know exactly what it would become except for a token with a community. 

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As my follower count and influence got bigger, it would be much much harder to not get bot-attacked, overhyped, or whatever… so I knew it would be an allowlist of some sort. 

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First, I started walking around with QR codes but those can get farmed, so then I talked to the team at IYK. They could create these chips, each time they’re scanned, it releases a unique POAP. This is what became their POAP cards, and the very first one was for me because I asked for it. 

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Interesting to see that product/market fit as more and more people do the same exact concept: you met me, now it's onchain through a POAP, then build your own social graph later. This ultimately evolved into what 9dcc does today with our NFC-based POAP minting functionality sewn right into the clothes. 

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Q: Admit One was the first time you really productized your network, is that fair? Tell us about your thought process on the membership and loyalty elements.

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If you had collected one of these POAPs, Admit One traded as high as $30k … 

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Admit One is the access point to all the things I’m working on, and if you had collected one of these POAPs you were on an allowlist to buy. They traded as high as $30k after launch.

I knew I was going to build out 9dcc after Admit One, so it was… 

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How can I create a community that is interested in the tech and wanting to push the space forward?

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Q: You launched your own secondary marketplace for it way back then. Why?

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It felt similar to how eBay was the highest grossing marketplace on the internet in 1998, and today accounts for a very small percentage of total ecommerce. 

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I knew the web3 world would become highly verticalized. I want to own that journey, what that interaction is with the consumer.

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I believe the world will shift to very verticalized marketplaces, same in web3 as web2. 

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I have gmoney.market, 9dcc.market. That’s where the world is going eventually. 

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Q: What was your thought process behind launching 9dcc?

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9dcc is a crypto-native luxury lifestyle brand. I wanted an aesthetic I would want to wear. I’m known as gmoney the crypto punk ape, but I don’t want to walk around with a big ape on my chest.

Next, as a consumer that spends money on goods, sneakers, tees, hats, watches, handbags… I want to know how many exist. One of 100, 1 of 100,000. What better use case then to chip the product, and then once you have the product in the world, gamify that experience in the real-world. 

Now community building that’s happening online can happen IRL, too, that means more fun things. Like every 9dcc wearer can hand out their own POAPs, just like what I was doing but now at scale. Anyone can build out their own onchain social network within this broader 9dcc ecosystem. 

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Q: How do you plan to break new ground across online and offline?

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We just announced Network Points for 9dcc. It’s a gamified points system and leaderboard for interacting in the ecosystem. We’re doing a scavenger hunt at NFT.NYC next week. 

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Another recent mini-games we did… on a recent Saturday, without telling people, you could scan any shirt within a 12-hour window and play Wordguess, basically Wordle. The person that scored the highest got a lot of points in the ecosystem, and everyone else also got randomized points for participating, flash on demand. 

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The goal is to decrease the window to less than 30 minutes. Start getting the community accustomed to the weekend, you don’t know when it’s gonna drop, and if you want to play, you better have the product near you to scan… preferably, wearing it. 

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Q: What's driving your reward program?

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Traditional rewards programs only incentivize you to spend more money. But the kid who wears Supreme head to toe, isn’t always the kid who spends the most on Supreme. How do you find and incentivize those fervent brand people to become bigger ambassadors. That’s what I’m trying to mess around with. 

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The person who spends a lot has their spot in the ecosystem, and then there’s the person who wears the brand every single day. Find those big ambassadors, your biggest fans. They may be worth more overall than the person who just spends more. 

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The person who wears it everyday, how do I interest them on a more personal basis? I have ideas for experiences like a nice dinner with me. You could have access to special drops. It’s not just for the people who spend more money. Instead, the people who are the most engaged get the most access.

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The goal of what I’m trying to do is gamify, not financialize.

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One of the things crypto has messed up is financializing everything. Does that create the right incentive structure? In certain cases, yes, but I think some things you want to gamify and not financialize, and you really need to focus to pick the right one.

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Our 0.02ETH 🍃

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In building web3-native experiences fans flock to, gmoney has pioneered a playbook, igniting tribalism and ambassadorship on a scale other brands aspire to. Intentionally and effortlessly. No easy feat in web3.

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There's fortitude in gmoney's approach to building web3-native experiences others actually participate in, however it's web3-enabled. From POAPs, to NFC chipped fashion, bluechip brand NFT collabs and the 9dcc marketplace.

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Proving for the web3 playbook there's merit in prioritizing experiential design to reward gameplay and connection onchain, over just selling more product.

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Find out more about gmoney here Twitter / Admit One  / 9DCC

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Covered by Mojito, the web3 consumer engagement platform. Empowering brand leaders with powerful tools to drive consumer engagement, sales, and loyalty for all levels of web3 maturity.

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Image credit: Nike

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‍What launched?

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Five months after launching .Swoosh, Nike’s Web3 community-focused platform, footwear giant launches its first NFT drop, Our Force 1 (OF1). Paying homage to the iconic Air Force 1 sneakers, these will unlock additional benefits for holders in the form of exclusive physical products and experiences. LeBron James was seen wearing the Nike Air Force 1 Genesis sneakers.

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.Swoosh community members co-designed the virtual sneakers

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Four virtual shoe designs envisioned by .Swoosh members were selected to feature in the OF1 drop. According to Ron Faris, general manager of Nike Virtual Studios, “with more members choosing to express themselves across physical and digital worlds, .Swoosh is the marketplace of the future.”

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Catch up quick:

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‍.SWOOSH is a social identity system. The first drop, .SWOOSH ID was a soulbound NFT, which means it can never be traded. Instead, it operates like an ID badge within the Nike web3 world and beyond. Nike says‍:

‍“The new digital community and experience is a home for Nike virtual creations and uses blockchain-powered technology — or what many call “web3” — to offer an inclusive, equitable place for athletes, creators, collectors and consumers to design and own the future of sport.”

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Our 0.02ETH 🍃

Nike is building an immersive collaboration platform, not just an NFT drop. Nike adopted an accessible approach with OF1s offered at a low fixed price point, and SWOOSH NFTs given away for free. In this way Nike has prioritized community participation over quick revenue returns.

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Covered by Mojito, the web3 consumer engagement platform. Empowering brand leaders with powerful tools to drive consumer engagement, sales, and loyalty for all levels of web3 maturity.

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Image credit: Fashion Network

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‍What's the trend?

There's a long list of brands building NFC chipped fashion lines, linked to NFTs.

Recap: Near Field Communication (NFC) allows two devices to connect with each other over short distances like Apple Pay and Google Pay.

The recent rise of NFC chipped fashion links clothing to NFTs creating  authentication, resale, community and engagement opportunities for brands. Providing a certificate of authentication, that's is critical for luxury fashion houses to validate provenance.

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Here are some great use cases

👜 LVMH 'Authentique Verify' allows Patou to connect each high-end product to a unique digital fingerprint, verifying the asset as authentic

🧢 NFC chipped 9dcc caps allowed gmoney's community at the real life treasure hunt @NFT.NYC to earn NFTs, personalised POAPs, socialise with the product and interact with the 9dccxyz ecosystem.

👟 The RTFKT x AF1 drop boasts an embedded World Merging NFC Chip so holders can flex their collectibles in digital and physical worlds.

🧘 NFT chipped Moonpay terminals enabled Alo Yoga to distribute free in-store NFT claims of daily affirmations for mental health awareness month

🧥 NFC chipped Wrangler jacket x Jeremy Booth allowed anyone to earn a ‘Concrete Cowboys’ POAP @NFT_NYC

🥼 NFC chipped Cult & Rain hoodies ‘Drop 002’ links to a 3D AR animated DreessX NFT and portal to the brand’s app

🏟️ NFC chipped Endstate Sneakers links to the NFT rewards including tickets to DeVonta Smith hosted event and an Eagles watch party

💍 NFC chipped 18k gold ring ‘Frillz’ by Metaverse Futurist Cathy Hackl links to a certificate of authenticity

🚗 NFC chipped Renault 'Racing Shoe5' provide a 2nd NFT and a certificate of authenticity

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Our 0.02ETH 🍃

Luxury brands can better track of their inventory and activate against the entire lifecycle. Meshing NFTs to the clothing brings the consumer closer and invested with their garment for the current and future opportunities.

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Image credit: Reddit

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In July 2022, Reddit launched their ‘Collectible Avatars’ – 150,000 NFTs at $20-30 each for users to purchase (with fiat or crypto) to use as their profile pictures on Reddit. Roughly 3 million new wallets or ‘Reddit Vaults’ were created with the launch, generating ~$6 million for Reddit to-date, with $2.5 million of that from secondary royalties. 

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The successful drop was not only a win for Reddit, but for their community as well. Since all of the Avatars were purchased via user-owned ‘non-custodial’ wallets, they could easily choose to sell on secondary markets where the average price is around $114 for an Avatar. The rare "Cyber Snoo" avatar sold for as much as $24,149. Reddit users love showing off their Avatar, and have made requests for more in future.

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Reddit also gave users the ability to earn royalties on any future sales of their NFTs. While ~75% of their secondary trading volume has been on OpenSea, Reddit announced that it would be launching its own custom NFT marketplace in January of this year. 

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Our 0.02ETH 🍃

The Reddit community traditionally has been skeptical of crypto, and so the widespread positive reception of this launch was a great win. In large part due to its seamless user journey, making it easy for crypto newbies to stand up their own wallet and get their first NFT (using MPC wallet similar to Mojito’s). Everything about this drop was positioned to make NFTs more accessible and user-friendly and to pave the way for wider adoption of the technology.

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Reddit is taking an even deeper step into web3, with the launch of their custom marketplace, and this will allow them to enforce royalties (including payouts to Reddit users), as well as increased trust for new crypto user Reddit fans who don’t want to sift through the chaos of OpenSea.

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Image credit: XCOPY Right-click and Save As guy

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‍What's the trend?

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Brands have always seen value in direct-to-consumer mint pages because it’s the best way to own the storytelling and conversion funnel for that critical touchpoint in the user journey.

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But after that, most brands until recently would just hand off the ensuing traffic, engagement and sales to third-party marketplaces like OpenSea.

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Now brands are increasingly launching or planning their own direct-to-consumer NFT marketplaces. 

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Our 0.02ETH 🍃

Now brands are increasingly launching or planning their own direct-to-consumer NFT marketplaces. This is for 3 key reasons:

1. Royalty Enforcement: When OpenSea paid royalties to brands and creators on every secondary transaction, it was ROI-positive to outsource marketplace functionality. Now most major third-party marketplaces have stopped enforcing royalties, instead generating their own user engagement and revenue off the back of your brand IP. By contrast, of course, you can enforce royalties on your own marketplace!‍
2. Owning The User Experience: Marketplace trading is one of the most valuable interactions token holders can make with your brand. Direct-to-consumer brands want to own the full user journey because it’s the best way to convert new customers as well as engage and monetize repeat customers. Since the 2021 NFT drop era is long over, and now the trend is to deliver high-value benefits and experiences for token holders, the arc is clearly bending toward brands needing to own their full web3 user journey just like web2.  
3. Cost & Speed to Market: Marketplaces require a lot more functionality than just a simple mint page, so it was typically too resource-intensive for a brand to launch their own marketplace. Now options like Mojito exist for brands to launch their own direct-to-consumer marketplace in 3 weeks or less with our standard UX templates and APIs – all for a reasonable monthly SaaS fee.

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Covered by Mojito, the web3 consumer engagement platform. Empowering brand leaders with powerful tools to drive consumer engagement, sales, and loyalty for all levels of web3 maturity.

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Image credit: Art Blocks

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What launched

Art Blocks expanded beyond generative art drops and now has its own direct-to-consumer marketplace, to 

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‍“...address 3 pain points: security, authenticity, and royalties.” 

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Like most creators and brands, Art Blocks pride itself on offering a premium experience to showcase their artwork.

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Value prop

Generative artists launching on Art Blocks get to build out their collections in a media-rich environment meanwhile Art Blocks keeps a captive audience of generative art buyers on their site for further discovery, in turn enriching Art Blocks’ engagement data . 

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Key features 

• Art Blocks gives its generative art community  a more brand-aligned home for secondary trading with enforceable royalties. 
• The experience goes beyond an eBay-like shopping experience through editorial content that spotlights the projects and individual pieces, similar to Sotheby’s.
• Art Blocks can offer their community a secure place to buy and sell  that’s free of fakes and knock-offs. 
• Art Blocks hinted at adding post-mint, and collector rewards, in further support for artist discovery. 

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Our 0.02ETH 🍃

By brands owning the experience and royalty rails instead of handing them over to generalist marketplaces (Opensea, Blur) the brand will own the infrastructure and data to build rewards for the discovery and buying behaviours the brand wants to incentivise. At Mojito, we’re heads down bringing more secondary marketplaces to market right now, we’re excited to share news and learnings soon.

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Covered by Mojito, the web3 consumer engagement platform. Empowering brand leaders with powerful tools to drive consumer engagement, sales, and loyalty for all levels of web3 maturity.

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‍Signup for news, trends and analysis on tap. Join 2,000+ brand leaders going deeper into web3

Image credit: Starbucks

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‍What launched?

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Starbucks launched its second NFT drop ‘The Starbucks First Store Collection’, a 5k collection of ‘Stamps’ priced at $99 with 1,500 bonus points to redeem against a range of benefits via their web3 loyalty program Odyssey.  

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Catch up quick: The Starbucks Odyssey web3 loyalty program that gamifies engagement with the company’s newest content. Consumers win NFTs for correctly answering trivia, and collecting enough NFTs can unlock exclusive Starbucks products and experiences.

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‍How it works: Starbucks Odyssey prompts members to complete real-world and interactive mini-games called ‘Journeys’ and how to earn more NFTs in return for in-store purchases. This is how consumers accrue loyalty points in the form of NFTs, which can then be redeemed for their benefits of choice (or sold on the secondary market).

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‍What’s new? Starbucks revealed the details of its 3 tiers of benefits, receiving much love from its dedicated brand advocates. Members can engage-to-earn their way up the reward tiers by completing more mini-games, or simply buy their way in. {adjust when send} At the time of send, the floor for Starbucks Stamp NFTs is currently $114 with $206k in trading volume so far

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Our 0.02ETH 🍃

From the early response on crypto twitter, offering members choice across an array of Starbucks perks was a great strategy to entice the range of coffee lovers it serves while driving the triple-bottom line: monetization,, brand education and doing good. Nudging high-value customers to learn the latest product talking points in exchange for discounts on their favorite drinks is the cherry on the top for their brand team.

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‍What's the trend?

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These are not new ideas to marketers, and it’s a simple premise: 

1. Identify commercial (spend money, refer a customer) and non-commercial (‘engagement’) consumer interactions to increase
2. Offer extrinsic (discounts, prizes) and intrinsic (status, leaderboard) rewards to the consumer for performing these actions
3. Tune for profitable growth

Historically, brands have done this through programs like shopping rewards, frequent flier miles, credit card cashback, VIP concierge, and blue checks. There was a web2.0 gamification era that saw mixed results on balance looking back. Broadly speaking, you might even say it has fallen somewhat out of favor with consumers and brands alike. 

Too many different dashboards, too many unredeemed rewards, too little value for the consumer for too much work, and for brands, too much disparate data to feasibly stitch across a multi-platform, multi-touchpoint consumer journey. 

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Flash forward to today and web3 seems poised to address all of these issues, and further supercharge the gamification dream with onchain capabilities that offchain reward systems just can’t match, like interoperability, tradeability, and real-time universal aggregation.

• Interoperability – Web3 allows consumers to visualize and manage all their digital rewards in one wallet, a single dashboard. Interoperability is also what allows consumers the option to use their digital rewards from one brand in another brand’s ecosystem. In other words, they’re portable from the consumer’s perspective.
  
  
• Tradeability – Web3 means always-on liquidity for digital rewards, so no more unredeemed value. Instead, if consumers don’t want to use a discount or gift, they can simply sell it to someone else who does. This kind of economy helps gamification programs thrive because the value of the digital rewards are inherently and tangibly higher.
  
  
• Real-Time Universal Aggregation – Remember, ‘web3’ just means ‘blockchain,’ and blockchain just means ‘decentralized database’. Several pioneering brands are solving the multi-platform data integration problem with the blockchain itself, using dynamic NFTs like first-party cookies to aggregate a user’s real-time engagement data. This can power personalization on any front-end once a user connects wallet. Watch this space, it’s wild

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Our 0.02ETH 🍃

Traditional channels engage traditional audiences. Brands that are serious about reaching new audiences are putting web3 at the heart of their marketing strategies. Offering free (or rather "earned") tokens for consumers who interact with your brand is supercharging gamified engagement. Don't miss out on what Nike, adidas and Starbucks are already harnessing... web3 consumer engagement!

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Covered by Mojito, the web3 consumer engagement platform. Empowering brand leaders with powerful tools to drive consumer engagement, sales, and loyalty for all levels of web3 maturity.

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Image credit: Starbucks

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Odyssey demo

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Starbucks knows loyalty better than most. The Starbucks Rewards program boasts 50 million customers and $15 billion in annual revenue, and the new Starbucks Odyssey NFT experience is the company’s first effort to use web3 to reward loyalty. We got a demo, and let us tell you: this is not your standard NFT drop.

“The experience allows members to participate in a series of entertaining, interactive activities called ‘Journeys'. Once a Journey is complete, members will earn collectible ‘Journey Stamps’ (NFTs) and Odyssey Points that will open access to new benefits and immersive coffee experiences that they cannot get anywhere else.”

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We got a demo, and let us tell you: this is not your standard NFT drop.

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Key features:

• Friendly terminology: As we said in our 2023 web3 predictions post, Starbucks avoids the term ‘NFT’ and uses ‘digital collectibles’ instead. They believe this is more descriptive, and won’t alienate people turned off by NFTs and crypto.
• Non-speculative: NFTs are tradeable assets, even if they also carry other utilities. Starbucks says the NFTs are ownable perks for their gamified loyalty program, and not meant to be high-value speculative assets. But already there have been unexpected multiple 5-figure sales from this collection.
• Web 2.5 for crypto newbies: Starbucks Odyssey users can purchase Stamps directly with a credit card, no crypto or self-custody wallet required. While the NFTs are onchain, Starbucks is using Nifty Gateway’s custodial wallet to ease UX friction.

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Our 0.02ETH 🍃

We're excited to see how this will play out. Starbucks may generate some unexpected cash from the Stamps secondary market, but Stamps therefore may not have the kind of impact on loyalty they had intended.It will be interesting to see whether their userbase will always be okay with custodial wallets especially in low-risk situations like Starbucks NFTs, and if so, how web3 interoperability will be unlocked for brands and users alike.

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Covered by Mojito, the web3 consumer engagement platform. Empowering brand leaders with powerful tools to drive consumer engagement, sales, and loyalty for all levels of web3 maturity.

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Cutting-edge brands are discovering that NFTs can be used in many ways to identify, analyze, track and re-engage high-intent consumers. The most popular method is also the easiest to understand and easiest to implement: Attendance NFTs.

The consumer premise is that event attendees may claim a free NFT in order to prove they were actually there. Brands can offer a simple digital memento, or lay the groundwork for a web3 membership community, rewards program, and more. The good news is that brand leaders don’t have to decide all that upfront. You can enter the market with a simple memento and then add utility later.

The brand value is in list-building, audience insights, and collaboration opportunities. That’s because when a user claims a free NFT, the brand collects their wallet address and can analyze all their onchain data historically and moving forward, including other brand or community associations.

Attendance NFTs are one of the best low-effort, high-reward ways to seed and engage audiences. Human behavior is already there – it’s common to keep a memento to remember an important event, be it concert ticket stubs, a fridge magnet from a souvenir shop, a badge from a conference etc. Attendance NFTs are a digital version of these mementos – proof you were there but with much more exciting functionality for future benefits than just physical keepsakes.

What brands should use Attendance NFTs?

Any brand can create these NFTs with a custom image and information about the event to denote attendance of any type, be it real-world or virtual. The token can easily be distributed to attendees via QR codes, a download link, or via email. With Mojito, consumers don’t even need a wallet to get started.

Unlike other NFTs, attendance tokens don’t tend to trade on secondary markets, but rather are used to denote status or achievement within a community. That said, some Attendance NFTs for major events or special moments sometimes do trade on the secondary market for people looking to collect these mementos – even if they weren’t there themselves to mint them (like this XCOPY POAP for those that participated in his art sale, and this DevCon POAP from the first-ever DevCon conference in 2019).

What do Attendance NFTs look like today?

The web3-native company POAP (Proof-of-Attendance Protocol) pioneered Attendance NFTs over the last 5 years with 27,000 users and more than 6 million NFTs. That said, their service does not mint to Ethereum or Polygon, and the creative is limited to a low-res static image. Others including Mojito have since started offering brands ways to mint Attendance NFTs on more popular blockchains with capacity for high-res imagery, motion graphics, etc. to ensure audiences receive the best digital mementos possible.

Attendance NFTs - Use Cases:

• Group Participation: Online communities give Attendance NFTs to members who attend weekly or monthly meetings, rewarding engagement and participation, like Gmoney did for his The Cutting Edge Twitter spaces.
  

• Event Attendance: Crypto conferences often give out Attendance NFTs to attendees, and collectors can demonstrate how long they’ve been in the industry or showcase repeat attendance to events. Attendance NFTs have been given out at over 100 Ethereum community events so far, many through POAP.
  

• Gamified Engagement: Web3 events sometimes use Attendance NFTs for a scavenger hunt type campaign – encouraging attendees to collect all of the tokens at different locations throughout the event and incentivize participation (like at NFT.NYC 2021).
  

• Capturing Moments: Some web3 games, like Decentraland, use Attendance NFTs to commemorate special milestones or in-game achievements, like the 10 million user milestone party hosted by MetaMask in 2021.
  

• Rewarding Loyalty: Gmoney’s web3 fashion label 9dcc includes a chip in all of his T-Shirts, that allows someone to mint unique Attendance NFTs upon scanning the shirt. Tokens are collected every time someone wears his clothing, so he can see who is representing the brand in public, and at which events.

Attendance NFTs - By Vertical:

• Musicians can issue Attendance NFTs for fans who attend their concerts (concert attendees is often information bands don’t have access to today), and reward superfans with exclusive content or early ticket access in the future.
• Fashion brands can issue Attendance NFTs for fans who attend fashion shows (either in-personal or virtually) to get a better understanding of their audience.
• Sports teams can issue Attendance NFTs for game attendance (in-person or virtually), and even issue special mid-game Attendance NFTs for major moments or victories.
• Entertainers can offer a POA to all fans they meet IRL as a way to start building out their own membership platform/fan club.

Attendance NFTs: What Comes Next?

Attendance NFTs badges allow consumers to show off their community status, but brands can also build on these tokens as a foundation for further consumer engagement:

• Reward consumer loyalty: reward engaged and loyal consumers with a free “thing” – even outside future utility, collecting these badges is a great way for deepening gamified brand loyalty.
  

• Continue the conversation: these NFTs can unlock access to group chats, discounts, future event invitations, more.
  

• Custom benefits: those benefits can be further customized based on things like the dates/times of the Attendance NFTs that were minted.
  

• Message consumers directly: these tokens allow you to have a direct line with attendees: organizers can message all Attendance NFT holders directly, or allow holders to chat with each other.

How do brands use Mojito for Attendance NFTs?

Brands like the Milwaukee Bucks, Liverpool FC, Sotheby’s and CAA have used Mojito to mint free NFTs as rewards for event attendance and brand loyalty with great success. Our team has guided 100s of web3 launches, and can solve problems for clients ranging from technical to user experience to commercial and finally to legal and security. There is no greater way to boost your brands chances of web3 success than partnering with Mojito.

Want to set up Attendance NFTs for your brand’s next physical event, digital live stream, product launch, store opening, conference, brand anniversary, or special moment? Get in touch

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‍What's the trend?

Why are global brand giants like Nike and Starbucks getting into web3?

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Sure, it might be because younger consumers show an appetite to buy digital products, but the true answer is more fundamental. Global brands are building in web3 for one major reason: data.

Interacting with consumers in web3 introduces a whole new kind of CRM with a richness of data not available to brands in web2. Marketers can see a connected wallet’s complete web3 activity, including interactions with other brands, interactions with other consumers, spending levels, and more.

As a result, the latest trend among global brands in web3 is not to sell NFTs, but to give them away for free – with a focus on building a large tokenized community rather than immediate revenue. When you sell NFTs, naturally you’ll convert fewer than if they are free. The more NFTs you distribute, the more wallets you connect. The most wallets, the bigger your addressable audience and the more you know about them.

Building your web3 audience with free NFTs is a low-cost, low-risk way to develop an engaged and incentivized community. You do not need to deliver as much value on Day One as you would with a high-price NFTs, but instead build up the value proposition over time as you learn more about your consumer.

The most common way to do this is with a free ‘membership’ token distributed to existing users, allowlisted communities, or even the general public. Nike is minting free .SWOOSH ID (~300k so far in beta) for users to co-create and engage in its emerging web3 ecosystem, while Starbucks minted free ‘earnable’ Stamps to users who complete brand engagement ‘journeys’. In both cases, these global brands are onboarding their existing users to web3 and/or attracting web3 native users into their ecosystems, and enriching their consumer datasets at the same time.

This is the next evolution of consumer web3. No more quick and dirty cashgrabs. Instead, brands will focus on building their web3 dataset, seeding their web3 community, and growing consumer value over time in order to increase lifetime value and evangelism.

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‍Build your web3 audience with free NFTs

Here are proven ways you can capitalize on this growing trend:

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So what questions can you ask the data?

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🤔 What percentage of existing customers converted to our free NFT? How many of those wallets have any prior web3 activity? How many are brand new to crypto? What’s different about these customers compared to those who did not convert?

🤔 Of the new users to your brand, what’s their prior web3 activity? How do these users differ from your existing customers who converted?

🤔 Of those with prior web3 activity, what third-party collections and platforms have they interacted with, how often, how recently, and how much was spent? What are the other most popular NFTs your community owns?

What happens next? Ok, your free NFT strategy worked, and you now have a large and active web3 community clamoring for more. This is when it gets exciting:

🎁 Token-gated experiences: Brands can offer value to web3 audiences by gating content, merchandise, events, and more behind ‘token-gates’. These are webpages or mobile apps that require a user to prove ownership of a specific NFT in order to access or interact. This is an immediate way to make a free NFT valuable to the owner.

🎁 Token-based personalization: More than just an access token, where all NFTs within a collection carry effectively the same value, brands can also detect that someone owns a certain trait, number, or set of tokens, and then deliver a personalized experience around that.

🎁 Token-based collaborations: Web3 interoperability makes brand collaborations and community cross-pollinating extremely easy and effective. Brands can offer token-gated value not only to their own NFT audience, but others as well. This is an effective way to reward holders, create buzz and grow community.

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How can Mojito help?

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Web3 is moving past its experimental phase into its early adopter phase, and innovative brands are already staking out their territory and setting the bar high. This means the time to start building your own web3 community was yesterday.

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Mojito has powered free NFT drops for the Milwaukee Bucks, Liverpool FC, Sotheby’s, CAA, Lyrical Lemonade and more. Get caught up quick and build a foundation for future campaigns with low-risk, low-cost free NFT activations powered by Mojito.

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Image credit: Nike

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‍What launched?

Nike is betting on building its own web3 ecosystem based on a.Swoosh, social identity system. The .SWOOSH ID is a soulbound NFT, which means it can never be traded. Instead, it operates like an ID badge within the Nike web3 world and beyond.

This from the company that has generated $186 million in total revenue from NFTs, more than the 10 next best brands combined (see our market report below). Nike says:

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“The new digital community and experience is a home for Nike virtual creations and uses blockchain-powered technology — or what many call “web3” — to offer an inclusive, equitable place for athletes, creators, collectors and consumers to design and own the future of sport.”

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Nike’s platform is a few years in the making. Nike will release its first-ever collection of digital wearables in 2023, which will be informed by .SWOOSH holders and include royalties to the winners who help to co-create virtual products. 

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Our 0.02ETH 🍃

• Nike is building an immersive community, not just an NFT drop.
• Built on Polygon; perfect for large-scale projects with low-cost transactions. Nike has previously only built on Ethereum, so it makes sense they’d want to maintain EVM compatibility while leveraging Polygon’s speed and affordability.
• Nike is ‘seeding’ its web3 community through the free .SWOOSH NFTs -- and so far over 275k unique users have minted! It's a great way to develop an addressable audience of wallet holders, and learn about their users onchain web3 activity. (More on free NFT tactics here.)
• Collaborating with creatives in their community using .SWOOSH NFTs as their identifier is a cool way to reward active fans with revenue-share opportunities for co-creations. Is this the future of remix and collab culture? Leave it to the DTC kings at Nike to shape the way.

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Image credit: Lexus

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‍What launched?

While the cost and first-time friction of some luxury brand NFTs can be barriers for mass audiences, luxury car maker Lexus chose to giveaway their beautifully-designed premium Hoverboard NFTs for successful runs of its fun Black Mirror: Bandersnatch-esque game, ‘Crack the Case’.

In celebration of its all-new RX 5th generation SUV, Lexus launched with an interactive ‘choose your own adventure’ game where players can win all five pieces of the one-of-a-kind collection Hoverboard NFT series. Accessible online and from dealerships, anyone can play ‘Crack the Case’ as one of two specialists – Hacker or Locksmith – in a simple interactive, game-of-skill.

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This execution is an elegant, yet accessible, version of Dookey Dash, the BAYC skill-based mint by Yuga Labs. Where the higher players scored, the greater their rewards. Dookey Dash’s grand prize NFT was sold in Feb’23 on the secondary market for $1.6m, following offers reaching $3.6 m. 

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Our 0.02ETH 🍃

Earned NFTs aren’t just for mass market use cases: they can be premium, prestigious grand prizes. Sometimes the value may be derived from 1/1 artwork rarity (e.g. a cult sci-fi collectible), status from human effort attached, or even a redeemable benefit for physical product or experience – all of which can drive crazy secondary sales. Building an elegant game for iconic art is also on-point for engaging the new luxurian demographic for their first mint.

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Direct-to-consumer brands eschew selling through intermediaries (e.g. department stores) in order to ‘own’ their customer relationships wherever they can. This means owning their contact information for future marketing, as well as their first-party data such as preferences or shopping habits for personalized offers or experiences. Brands have shown that direct-to-consumer business improves retention, lifetime value, and profitability, so it’s no surprise this has been a dominant trend among B2C companies for the past 20 years.

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In DTC it’s all about ‘who owns the customer;’ in web3, the customer owns the brand as much as the brand owns the customer, and we believe this symbiotic evolution is transformatively positive for both parties.

This co-ownership model is achieved through brand NFTs, fungible currencies (eg. $FWB), or both, but it essentially means ‘tokenizing’ brand IP and allowing consumers to acquire, use and sell brand tokens at any time – frictionlessly, instantly and globally. Consumers get to own the unique asset itself, with all its possible benefits, but also own a share in the brand’s overall equity. This direct incentive alignment drives consumers to take it upon themselves to grow the brand as co-beneficiaries in its success. This is any marketer’s dream: an army of brand evangelists with a built-in affiliate model. Meanwhile, consumers passionate about their favorite brands get rewarded more directly for their evangelism. Win-win!

Consumers are already buying digital products. Last year consumers spent $2 billion on Roblox and $5 billion on Fortnite alone… and billions of hours on these platforms interacting with brands. But these assets are landlocked and can only be used within their native platforms. Web3 enables different digital products. Instead of being landlocked and ruggable, NFTs are interoperable and fully owned.

Brands are creating their own web3 platforms, not just products. Consumer giants like Nike understand the potential of a digital product line, generating over $186mm so far from NFTs. Late last year, they announced the launch of .SWOOSH, a community-based platform for digital shoes and jerseys that also unlock access to events, physical products, and co-creation opportunities. They are selling these digital products direct-to-consumer with creative ways to upsell and cross sell.

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Secondary markets offer new ongoing revenue streams. Consumer brands today rarely capture any value when their items are resold. Unlike physical products, NFTs can be encoded with a ‘royalty’ such that every time it trades hands on the secondary market, a fraction of the payment is sent to the brand automatically. Web3 native brand Bored Ape Yacht Club has generated tens of millions in primary sale revenue, and more than $100mm in secondary royalties. That’s a new business model, and major traditional brands have noticed. Adidas and TIME have generated $5mm and $4mm, respectively, and Nike has earned more than $90mm in secondary royalties alone. The leading brands are adding custom secondary markets to their sites to retain traffic, stickiness and margins through a complete buying experience for consumers.

NFTs are powering supercharged loyalty programs. NFTs don’t have to be pricey to be effective. Starbucks is moving their 50-million-person loyalty program, which generated $15 billion in revenue last year, over to web3 platform 'Starbucks Odyssey'. They see NFTs improving that program by making loyalty ‘stamps’ ownable, and gamifying engagement in exchange for tradeable benefits like discounts and offers. As all marketers know, it’s always more cost effective to retain an existing customer than to acquire a new one. The incentivized nature of web3 adds a new dimension to loyalty and evangelism that big brands are starting to leverage.

NFT communities are dynamic peer-to-peer brand engagement groups. NFTs not only offer a new kind of DTC relationship for brands, but also for consumer to consumer. Token-based brand communities represent ‘fellow owners’ who are actively and organically interacting with each other about the brand in places like Discord and Telegram. This is also a low-effort way for brands to sustain a lively and engaged community: peer-to-peer brand discussions rather than more unidirectional engagements on Instagram and Twitter posts.

There are rich new consumer data insights in web3. Direct-to-consumer brands obsess about ‘first-party data’, essentially proprietary insights they glean about customers through their browsing and buying habits within their own ecosystem. Otherwise, brands have virtually no idea what customers are doing outside their four walls. This means rich customer data is splintered into silos across each brand’s incomplete picture, with no brand able to deliver an optimal experience for lack of full visibility.

Web3 data is much more interesting and powerful because it’s ‘open’ and tied to a consumer’s wallet address on-chain. Take a look at what other digital products they own, from which brands, and how they’re spending their money across all of crypto. All of this information is available and actionable on the blockchain.

The vision for DTC was always for brands to create and sustain lasting relationships directly with their consumer. Instead of a consumption-based relationship with the consumer, in web3 brands and consumers “win” together in a more participatory model. In the traditional sense of DTC, the financial relationship comes down to a “buy now” moment. With web3 and NFTs, it is a ‘buy into now,’ with a value exchange loop that doesn’t end; brand and consumer are intertwined by shared incentives to create value for each other. Consumers benefit from utility and perks, or from resell potential from a liquid ‘always-on’ market. The brand or creator benefits from transaction volume via embedded royalties… in the words of Charlie Munger, “show me the incentive and I’ll show you the outcome."

It’s certainly not a straightforward to simple step for a global brand to integrate blockchain technology into its existing framework. Those that have succeeded in making the web3 leap like Starbucks, Nike, adidas and Sotheby’s have all done so in different ways – sometimes it’s through membership, sometimes it's through loyalty and rewards, sometimes it's simply through a new digital product line. Brands that will be the winners of this DTC revolution are the ones who see its potential to not only supplement their existing business, but offer entirely new kinds of value to their consumers.

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