Building NFT Ecosystems: How Lineage Protocol Can Enhance Community Engagement
Token-gating has transformed the way online communities functioned. It restricts access to exclusive content or a specific community to token holders.
Possessing tokens gives holders a sense of ownership, driving better engagement and control over community governance.
Proof of Attendance Protocol (POAP) tokens are particularly useful for demonstrating the members attending an event or experience.
Applications of POAP could include:
- Ascertain participation of fans in an online concert,
- Serve as discount tokens issued to customers by a business to be later used in online stores,
- Vote on protocols,
- Participate in private meets.
Limitation of POAP tokens and how Lineage Protocol eliminates it
While POAP creates more use cases for token-gating, it has a deficiency. These tokens are static, meaning they can’t evolve based on external triggers. While you may use POAP to register attendance to an exhibition, it won’t reflect your various experiences within the event.
So you might have attended a concert, a football match, and a poetry recital, but the token won’t reflect any of it. In other words, you can say POAP tokens work in a single dimension.
An example will help understand better how multiple data sets feature works. Let us say you have a BAYC NFT that can work as POAP, each new data set could represent a new event: NFT NYC, Token 2049 and Blockchain Economy Conference.
Each of these data sets are separate badges that could evolve based on the number of events you attended. Distribution of control and storage of data across multiple nodes boosts security as any change in the dataset would require approval of the collection creator.
A POAP with Lineage turns out into an NFT that tracks your participation in various events and communities. It is a constantly evolving token, which transforms based on the number and types of events attended.
Each event one attends adds a new layer of metadata to the token, making it a unique reflection of the experiences of the holder. If they have attended a music carnival, the NFT might be displaying a guitar. Someone joining the online inauguration of an electronics store could be donning a television set.
An added advantage of integration with Lineage Protocol is addition of cross-chain capabilities, taking the POAP beyond a single chain. It can follow the holder across different ecosystems.
Unprecedented community engagement
Lineage Protocol empowers brands to transform several spheres of life in innovative ways. For example, companies could give users perks such as free trips/products or training sessions based on their activities on social media. In case of a community, Lineage Protocol could make the voting power of the members proportional to their quality of conversations.
Even in collaborative NFTs, Lineage Protocol could enhance the endeavor. Each community member can submit their data set for the NFT. The best ones among these data sets get approved and become a part of the NFT.
How interoperability of NFTs helps in expansion of community
Interoperability of NFTs, referring to the ability of the tokens to work well across blockchains, helps developers create applications where tokens are chain-agnostic. For example, interoperable game NFTs can be used across games without worrying about the individual chains they are based on.
Cross-chain efficiency of evolving NFTs helps brands to expand their community without worrying about their base chain. Brands can use NFTs to encourage attendees to participate in more events and create a more wholesome, engaging experience.
Thanks to Lineage Protocol, projects are able to collaborate with new projects to deliver exciting utilities that their community members will genuinely appreciate. As more people attend their events, the value and exclusivity of their NFTs will increase, fostering endless possibilities for utility and interaction.
Turning community into a literal investment
Holding NFTs has an added advantage. Nearly every single NFT is a token that unlocks a token-gated community. The holder could resell the token if they want to quit the community for some reason, allowing them to take the community just as a literal investment. Such membership structure isn’t available in a traditional online community.
An example will help better understand. Suppose one joins the management community of a theme park with limited spaces and token-gated management structure. If the theme park grows popular and the member has been active, the token price is likely to grow as well. When one decides to leave, selling their token will fetch them more price than they spent on buying it.
Integrating such tokens with Lineage Protocol makes them evolving and thus more valuable. Every time the holder joins the meetings, votes on the proposals, and actively participates in the development of the theme park, it is recorded in the NFT metadata. The mechanism would enhance the value of more active customers.
The rules regarding buying and selling community tokens can be implemented via smart contracts. A portion of the resale value can be earmarked for the community host or the community itself. Thanks to increased token value and resale, limited communities can be advantageous for members as well as hosts.
Lineage Protocol changes the dynamics of online communities by turning POAP NFTs into evolving tokens, thanks to its multiple data sets feature. These NFTs become multi-representational assets, displaying the unique journey of holders, adding a new layer of value to NFTs and increasing engagement.
Moreover, Lineage facilitates tokens gaining cross-chain capabilities, enabling the holder to function in a chain-agnostic manner, highly enhancing the utility of the ecosystem. Multiple creators across chains can contribute to a single POAP at the same time, driving engagement within the community.