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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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. 

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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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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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.

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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.

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: 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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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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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: 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: 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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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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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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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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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?

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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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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