NFTs Shift from Short-Term Speculation to Long-Term Utility: Loyalty, Memberships, and Ticketing
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NFTs Shift from Short-Term Speculation to Long-Term Utility: Loyalty, Memberships, and Ticketing
NFT loyalty programs, membership rewards, or token-based tickets provide a powerful framework for brands and consumers.
Navigating Web3 tides with focused insightsWritten by: Cam Thompson
Compiled by: TechFlow
As the crypto market faces new challenges and a downturn, many are looking for other signals to understand how decentralized and blockchain technologies might evolve in the future.
Non-fungible tokens (NFTs), especially profile picture (PFP) collectibles, saw a surge in sales in 2021. Many people adopted these colorful JPEGs as reflections of their digital identities and built sizable Web3 or next-generation internet communities.
But as NFT trading slows down, the conversation has shifted from short-term value and chasing hype cycles to focusing on the long-term utility of holding these tokens.
Many brands have begun exploring creative use cases for NFTs beyond treating them merely as quick investment opportunities. Now, companies are viewing NFTs as a way to strengthen relationships between brands, creators, and consumers by linking rewards to long-term ownership.
For example, GQ launched an NFT-linked magazine subscription service in February, while sports media outlet Sports Illustrated introduced an NFT ticketing program in May. Meanwhile, Starbucks rolled out a beta version of its Odyssey Web3 loyalty program in October to reward its most loyal coffee drinkers for digital engagement.
These popular mainstream brands are primarily focused on attracting new customers seeking richer brand experiences—without compromising authenticity or creating complex onboarding processes. For some thought leaders, loyalty programs, memberships, and ticketing opportunities represent the most obvious NFT use cases and offer a clear path to bringing the largest number of new users into Web3.
Enhanced Loyalty Economics Through NFTs
Loyalty programs or point-based systems—such as Delta Airlines’ Skymiles or Sephora’s Beauty Insider program—reward customers for purchasing a brand’s goods and services.
According to a July 2022 survey conducted by LendingTree, at least eight in ten Americans belong to at least one loyalty program. In the report, Matt Schulz, chief credit analyst at LendingTree, said consumers typically expect better discounts, faster access to free products, and exclusive deals through such programs.
Because NFTs can create communities around brands—as demonstrated by well-known collections like Bored Ape Yacht Club (BAYC), Moonbirds, or Goblintown—they have found a place within these systems. They also help reshape incentive-driven and transactional Web2 loyalty models by incorporating digital identity and ownership—new components enabled by blockchain-powered loyalty programs.
Tara Fung, CEO and co-founder of Web3 infrastructure company Co:Create, said NFT-based loyalty offers users closer connections with the brands they love, while enabling brands to more effectively engage their audiences.
“Since loyalty is a well-understood concept related to retention marketing, incorporating Web3 into the tech stack allows it to become something more,” Fung said. “The value that Web3 brings as part of the tech stack is greater ownership over one’s loyalty.”
Fung noted that building new blockchain loyalty programs requires a careful balance between serving those already immersed in Web3—often called Web3 natives—and not alienating potential new users.
“It’s still a trade-off,” she said. “But we’re trying to meet both needs: helping anyone get involved and experience Web3 from day one, while ensuring Web3-native users feel these assets are truly theirs—something they can take with them.”
For companies aiming to add Web3 loyalty benefits to existing products and services, onboarding remains a common pain point. This is especially true for Blackbird, a platform builder for restaurant loyalty programs targeting frequent diners.
Ben Leventhal, co-founder and CEO of Blackbird and former reservation platform Resy, believes NFTs are the most effective mechanism for attracting and rewarding customer loyalty in restaurants.
Blackbird’s NFT loyalty program is simple: when customers dine at a Blackbird-supported restaurant, they immediately receive an NFT minted to a unique backend wallet, marking their “proof of dining.” Each time they return to that restaurant, the NFT evolves into a new token with increasingly rare attributes.
“Overall, we think about loyalty and connection, while making a restaurant feel magical and exciting to foster long-term engagement and relationships between restaurants and diners,” Leventhal said.
Like many other projects leveraging blockchain technology, Blackbird avoids using Web3-specific terminology to make the experience as user-friendly as possible. For instance, companies like Nike and Starbucks have chosen not to use the term “NFT” in their marketing materials, instead referring to their offerings as “digital collectibles” or “tokenized assets.”
When building Blackbird, Leventhal aimed to abstract away blockchain technology and jargon from the user experience so that participation centers around the brand itself. “99% of restaurant customers interact with Blackbird not because they want to engage with a Web3 company, but because they want to engage with a restaurant,” he said.
Non-Fungible Tickets
The chaos surrounding ticket sales for pop star Taylor Swift’s Eras Tour highlighted serious issues across the mainstream ticketing industry. From crashed platforms and duplicate tickets to inflated resale prices, Swifties and other fans often face major obstacles in securing tickets.
Non-fungible (NFT) tickets offer solutions to some of the problems currently plaguing the events industry.
David Marcus, Executive Vice President of Music at Ticketmaster, explained that artists can use token-based ticketing to gain better control over how tickets are distributed to fans. For example, the band Avenged Sevenfold offered exclusive concert access to holders of their Deathbats Club NFT collection via Ticketmaster.
“Any artist who mints their own NFTs can experiment with token-gated sales, which can help connect token holders with premium seating, pre-show experiences, or early access to upcoming tours,” he said, adding that there’s growing interest in using NFTs as “keepsakes to commemorate and relive live experiences.”
For NFT ticketing to scale and grow, Marcus said the capability requires “Web3-activated communities, which are still expanding at broader scale.”
Matt Sanders, lead vocalist of Avenged Sevenfold, also known as M. Shadows, said while NFTs aren’t necessary for every type of event, they do offer fans more flexibility and alleviate some of the pain points associated with buying and selling tickets.
“What we really need is to give fans choice: they should be able to easily transfer or resell their tickets. They shouldn’t need physical tickets, which can be lost. And they shouldn’t pay excessive fees, which often include shipping and processing charges,” he said.
Alfonso Olvera, CEO of NFT ticketing experience company Tokenproof, explained that NFT tickets can provide holders with benefits such as on-chain ownership verification, access to rewards, artist royalties on secondary sales, and perks for sponsored events.
While Web3 ticketing is still in its early stages, Olvera is confident about its future—though he believes starting with smaller-scale events is key to gaining traction before going mainstream.
“They don’t have massive technical requirements yet, so we’re focusing first on areas where we can clearly demonstrate the advantages of proper NFT ticketing, then expand to broader markets,” Olvera said.
While starting small may be strategic, several established players have already entered the Web3 ticketing space. In May this year, sports magazine Sports Illustrated launched SI Box Office, a self-service event management and blockchain ticketing platform that helps organizers create and sell NFT tickets. The platform, developed in partnership with blockchain software firm ConsenSys, mints all tickets on Polygon, an Ethereum sidechain.
“We know how important live events are to fans. Instead of building traditional barcode infrastructure, we went straight to NFT ticketing. We not only believe it's the future of live events, but because we don’t support legacy systems, we have the opportunity to build entirely on-chain,” said David Lane, CEO of SI Tickets.
For Lane, NFT ticketing can serve as an entry point for fans to explore blockchain technology and gradually become comfortable with Web3 experiences.
“It gives consumers a chance to encounter on-chain content, experience token-gated opportunities, and see what crypto or Web3 communities are truly about. It’s a first touchpoint, a first NFT experience—something that gives them a real sense of it,” he said.
Additionally, SI Box Office aims to make traditional entertainment or media brands more willing to enter Web3 and bring their audiences along.
“We’re waiting for a global brand to join the Web3 community and create something everyone can actually use. We see this as our way of helping partners, strategic vendors, community events, artists, and teams. If we find the right partners, we can help them enter the Web3 space and show them all the amazing things an on-chain experience can deliver,” Lane said.
Web3 Memberships and Community Engagement
Beyond loyalty programs, some brands are using NFTs as membership passes into entire ecosystems. These ecosystems not only offer users unique experiences or perks but also create pathways for vibrant community growth.
Meral Arik, co-founder of Web3 membership platform Passage Protocol, said Web3 memberships vary in structure and execution across brands and platforms—whether granting access to decentralized autonomous organizations (DAOs) or real-world social clubs. Smart contracts power these memberships, acting as “digital agreements” that signify a person’s affiliation with an ecosystem.
“When consumers own a membership NFT, they can feel like they’re part of the brand, community, or ecosystem it represents,” Arik said. “As a result, they’re more emotionally and/or financially invested in creating value for that ecosystem—whether by buying more products, engaging on social media, or telling friends about it.”
Arik added that tokenized memberships can also reward long-term engagement. She pointed out that Passage Protocol builds dynamic NFTs—tokens that evolve as holders interact with the brand over time.
More importantly, she said membership NFTs can enhance existing loyalty infrastructures without overwhelming mainstream users with technical terms.
“If executed properly, membership NFTs can be powerful tools or components within modern loyalty programs—without needing to become the marketing focus of the program,” she said.
Web3 beauty company KIKI World has built its brand around a growing community of makeup enthusiasts who want to connect more deeply with the makers of their favorite products—and help shape them in the process.
Using the tech stack built by Co:Create, KIKI World launched the KIKI World Membership Pass—an NFT that grants holders access to a DAO. Within the DAO, members can propose product ideas, vote on upcoming releases, and attend exclusive events and experiences.
Brendon Garner, co-founder and chief marketing officer of KIKI World, said membership programs can leverage blockchain technology to enhance user experiences and create more enjoyable interactions.
“Traditional loyalty and membership programs often operate like ‘you’ll get an email discount code one day before public sale’ or ‘you have some points to use at Sephora’—but is that really a delightful experience?” he asked. “We’re committed to using familiar language and creating tangible impact from day one by rewarding everyone who joins the KIKI World community.”
Although NFTs power the KIKI World membership program, the DAO component of their strategy helps cultivate a more interactive community structure—one similar to real-life membership clubs, but enhanced with the additional benefits and security of blockchain technology.
“On a conceptual and philosophical level, I think it’s crucial to reward those who contribute the most and empower them to have real influence in the areas they care about,” Garner said.
Bringing Brands Closer to Fans Through Web3
Looking ahead, tools like NFT loyalty programs, membership rewards, or tokenized tickets offer brands and consumers a powerful framework for gradually adopting Web3. By leveraging NFTs, brands can build communities around their products and connect with—and reward—their most engaged and loyal fans over time.
Brands can thoughtfully use these tools without losing new users to short-lived trends. The key lies in finding the right fit for the technology rather than blindly following fads. Moreover, NFTs don’t need to be marketed as the centerpiece of a brand’s campaign or Web3 strategy; instead, they can serve as tools to enhance existing initiatives and meaningfully and sustainably engage mainstream users.
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