In a move that could secure its long-term sustainability and help pave the way for wider non-fungible token (NFT) adoption, leading NFT attendance badge service Proof of Attendance Protocol (POAP) announced Tuesday that it will begin charging commercial clients for access to its services. The news, an abrupt departure from the company’s years-long policy of offering free POAP minting to all users, sent ripple effects across the Web3 space, sparking widespread debate as to the implications of limiting free access to the technology.
POAP, a Ethereum-based app, helps event organizers give out attendance badges in the form of NFTs, which can be used to prove attendance at physical or virtual events. Starting April 17, companies and individuals who distribute POAPs at commercial events may be subject to charges based on the number of POAPs issued. According to Isabel Gonzalez, POAP’s co-founder, prices for commercial clients will likely converge around $1 per POAP issued. Special pricing, however, will be available for current commercial users at one quarter of that cost.
Not all commercial customers will be charged for their use of POAPs, though. Certain ventures may continue to be subsidized by the company on a case-by-case basis if they further POAP’s artistic and creative mandate. “We like people creating true precious digital collectibles more than we care that they pay,” Gonzalez told Decrypt. “The efforts that go into good storytelling are worth their own weight in gold.”
The move does present some difficulty in distinguishing personal events from commercial ones. For instance, a wedding with under 200 attendees could be perceived either way. POAP has released guidelines to help interpret the differentiating factors between the two, such as whether “an emotional connection” exists between a POAP issuer and collector, or whether a large number of POAPs are issued (especially in an automated fashion).
Gonzalez hopes the new pricing model will encourage its users to consider the best applications of its services while also solidifying POAP’s staying power. “We believe this evolution will expand the range of possibilities for how POAP can be used sustainably, in part by giving issuers tools to align their plans with POAP’s mission of creating precious digital collectibles,” she said.
It remains to be seen how stakeholders will react to the news of POAP’s new commercial pricing model. Despite early pushback, Aptos Labs’ co-founder Mo Shaikh pointed to the value of tokenizing communities across the world and using NFTs to expand into the mainstream via big brands and as a form of payment. As organizations and communities grow increasingly reliant on digital and automated technologies, the value of web3 services like POAP can help them unlock new opportunities, experiences, access, and rewards. Through Community Tokenization and its own utility token, Bulls & Apes Project is taking this mission to heart, investing heavily in the technology and gamification design to provide an own-to-earn model that rewards holders simply for engaging with them.
Sustainable and ethical operations will remain central to the successful adoptions of NFTs and all web3 services. With its new pricing model, POAP can work towards greater financial security and wider use of its service, while also encouraging its users to experience and create true digital collectibles. By combining a passionate, dedicated community, engaged users, and responsible teams, the web3 world can enter a new era of growth, stability, and value creation.
