Token Gating

Definition ∞ Token gating is a mechanism that restricts access to digital content, services, or communities based on the ownership of specific cryptographic tokens. Users must hold a certain token, often an NFT or a governance token, to gain entry or unlock features. This method creates exclusive environments and rewards token holders for their participation and investment.
Context ∞ Token gating is rapidly becoming a prevalent feature in decentralized applications, online communities, and digital collectibles, sparking considerable interest and debate. Discussions often focus on its utility in creating exclusive experiences, managing community access, and its potential impact on digital ownership models. Observers are closely watching its application in areas like decentralized autonomous organizations and premium content distribution.