What are membership token NFTs?

Membership token NFTs are digital assets that represent membership in exclusive clubs or communities. A prime example is the Bored Ape Yacht Club, which is an elite group restricted to 10,000 members, mostly wealthy individuals who bought into the club. The core idea is to utilize NFTs as a way to create and manage such exclusive memberships. However, beyond the exclusivity of such clubs, there's an intriguing potential for artists and creators to build their own communities using NFTs as perpetual, usable tokens for access and participation.

Jim O'Shaughnessy and Dave Nadig discussed this concept in an episode of Infinite Loops 2022, highlighting the potential and reservations around such models. While many memberships are driven by high entry costs and exclusivity without much intrinsic value, there's a vibrant opportunity for more meaningful and imaginative uses of these tokens to drive innovation and community engagement 1.