Paper tickets and certificates are so 2010. The future is all about digital souvenirs of different life experiences – and that’s where the proof of attendance protocol (POAP) NFT comes in. This article will explain all the basics surrounding Proof of Attendance Protocol NFTs so you can start collecting them in your digital wallet.
What does POAP mean NFT?
POAP, or proof of attendance protocol, as the name suggests, is a non-fungible token (NFT) that proves you’ve attended an event, either virtual or in-person. The events can be a ceremony, private function, game, concert or somETHing similar. You can consider these as digital badges or stickers for your wallet as a reward for your attendance in these events.
POAPs can also be proof of your achievements, such as your engagement in an online or offline community. Attendance protocols are also given to commemorate in-game events. As a representative of real life experiences, POAP NFTs bridge the physical and the crypto worlds. They show that you’re more than an ETHereum address by linking your off-chain (or real-life) physical attendance to your on-chain presence.
In a way, POAPs add a touch of humanity to the crypto world – and create a reliable record of your activities in both worlds.
How Does a POAP Work?
When you attend an event or achieve a milestone for which there are POAP badges, you’ll receive one. It’s as simple as that. You can also use it to access a major event or an exclusive online group.
POAPs work a lot like other NFTs. Each proof of attendance protocol is unique. They were first created for official POAP smart contracts on the ETHereum blockchain. To lower transaction costs, POAPs have since migrated to the Gnosis chain (Formerly xDai), a cheaper and faster Ethereum side chain.
Just about anyone can make a POAP to mark a special moment. But there are three conditions for a POAP NFT:
1. It must be minted via the official POAP smart contract
2. It must hold metadata related to a specific date or period for up to a year
3. It must contain an image associated with the specific event
You can only mint one POAP for an event on a single wallet. That’s because each one represents attendance – and you can’t attend the same unique event twice. POAPs are different from other NFTs in that they’re free for creators and collectors, because there are no gas fees involved.
There aren’t any set rules that dictate which events can have POAP badges, or how big an event needs to be to have one. Some major events can even have multiple POAPs. As long as you can create them and get them approved, you can have POAP NFTs for your virtual or in-person events. You can then invite people to mint them and win gifts.
What Are POAP NFTs Used For?
The primary purpose of a POAP is to prove attendance. Here are a few examples of different ways that POAP NFTs are used:
- To show attendance at events
- To access private events, such as an invitation to add pixels to a digital art piece or join weekly community meetings
- As security clearance for private groups
- Collectables to show you’re a fan of someone or somETHing
- Gifts or rewards for achieving somETHing, such as being among the first 100 listeners to a podcast
- Souvenirs, such as a game shirt worn by a professional athlete
- Invites to vote on protocols, attend in-person meetups or join private chat rooms
Although there are innumerable use cases for POAP NFTs, they’re not currently used much by people outside several online crypto communities. Event organizers from these groups create badges for attendees of their podcasts, on-site conferences, virtual events, and in-person seminars.
But some off-chain businesses – such as Warner Music Group, US Open and Lollapalooza – are entering the POAP ecosystem. Recently, rapper Kevin Gates gave out POAPs to attendees of his show at Red Rocks Amphitheatre.
Why Collect POAPs?
People typically create a POAP collection so that they can obtain exclusive benefits. After collecting a certain POAP, you can gain access to private online communities and participate in their activities. The more POAPs you collect, the more voting power you acquire in POAP-exclusive community polls, which is a big advantage if you want to weigh in on governance proposals.
For DeFi and crypto enthusiasts, POAP collections can serve as an on-chain résumé. You can get more of these NFTs by attending and participating in more crypto events or protocols. It can build your reputation by creating a provable record of all the special events you’ve attended.
By collecting POAPs, you can connect and chat with community members who also attended the same event through exclusive chat rooms that give access to specific POAP holders.
Benefits of Collecting POAPs
Sometimes, collecting POAPs can also earn you money. If you have a unique POAP badge from a super-exclusive event, you may be able to sell it for a lot of money. For example, there was recently a POAP on OpenSea entitled 999 Club: Genesis going for nearly $22,500. Now, just to remind you, POAPs are free to acquire – because you don’t have to pay a gas fee. So this POAP is selling for a $22,500 profit!
Another benefit of holding on to these collectibles is that creators can airdrop NFTs to wallets that have collected POAPs. This way, you can get more tokens without having to mint them.
Should You Sell POAP NFTs?
Sometimes, you hit the jackpot and secure a POAP that goes viral after a special event. But that’s rare. Usually, it’s not feasible or economically wise to sell POAPs. That’s because you might have to pay a higher gas fee to migrate it to the mainnet than what you’ll get from the sale itself.
Closing Thoughts
The future for POAPs looks bright, because bigger brands such as Adidas and Garyvee are launching their POAP collections, creating heightened interest in collecting and selling these NFTs. POAPs are a great opportunity for event organizers to offer a customized experience to their attendees and make their events more appealing.
This is the only type of NFT that ties the decentralized network and the physical world togETHer by linking actions in the physical world with decentralized identities. All other NFTs are created, collected and sold digitally on blockchains. Proof of Attendance Protocol NFTs have only just begun to gain momentum. If you haven’t explored POAPs before, now’s the time to do so.
