The Pros and Cons of NFT Ticketing

We're discussing the pros and cons of NFT ticketing for fans as we pivot towards a new era for the live events industry.

Charlie Gardener
Charlie Gardener
February 7, 2022
6
min read
NFT tech/lights
SeatlabNFT

An NFT event ticketing marketplace helping artists foster closer connections with fans, eliminating fraud and reducing the impact of scalping.

NFTs - New, Fairer Ticketing

Alright, NFT isn't short for new, fairer ticketing, but we'll get to that moment. NFT stands for non-fungible tokens, and it's pretty hard to have avoided hearing about them in one form or another for the past couple of years. There's been a lot of talk recently about non-fungible tokens (NFTs) and how they are set to revolutionise the digital world we live in. They are a key component of our shift to Web3 technology and underpin much of the potential that blockchain technology offers, but for many people, NFTs are still only associated with digital artwork.

But, the NFT artwork craze is now dying down. There are several highly tangible applications for blockchain-based NFTs beyond simply collectable digital media now emerging; you might have heard some people talking about NFT ticketing.

After the Champions League Final in Paris this year, blockchain-based ticketing has been recommended for the Paris 2024 Olympics to help combat issues around ticket fraud in the sporting industry. Similarly, UEFA has been using blockchain-based ticketing (though not NFT tickets) for the Champions League since 2020.

However, the benefits of blockchain-based ticketing and NFT ticketing go far beyond simply helping to eliminate fraud. NFT tickets also provide a level of control over the secondary market, leading to better box-office access for fans and a way to trade tickets at fair prices on a healthy secondary marketplace.

Using blockchain networks for NFT tickets also opens up the potential of airdrops to create a more immersive and rewarding experience for fans. It also allows artists and event creators to identify and reward their most loyal supporters through these airdrops.

In short, there are plenty of reasons why switching from Web2 solutions to NFT tickets benefits everyone in the live entertainment industry.

For the event ticketing industry, NFT tickets represent a new era for fans, event creators and artists. Blockchain technology allows for a host of additional utilities attached to NFT tickets and our innovative NFT ticketing platform aims to revolutionise the process with some key benefits to fans.

Pros for Fans

Token utility 

This is a huge benefit for fans who adopt the Web3 NFT ticketing revolution and there’s quite a bit to it, so let’s dive in.

We automatically add a 5% buyer's fee + a 1.5% payment processing fee to the price of tickets, it’s pretty standard for a ticketing platform and it helps cover our running costs.

However, fans holding the $SEAT token will pay a reduced buyer's fee. The more tokens held, the less in fees the buyer pays! On top of that, fans are also able to stake the $SEAT token. Staking grants the holder a choice of perks that also scale in line with the number of tokens they hold. 

Fans who stake their $SEAT will be able to earn a cut of all collected buyers fees to increase their holdings, or earn Rewards Centre points to claim a variety of exclusive rewards such as VIP access, backstage passes and other perks from big-name brands.

Secondary market control

Along with the authenticity guarantee for tickets purchased on the secondary market, NFT tickets can also be governed by smart contracts.

Smart contracts allow those creating NFT tickets to set conditions around the resale of these tickets. This means that they can set a ceiling price for which the NFT ticket can be resold and/or direct a portion of revenue from those sales back to specified wallets using our royalty splits functionality.

As a result, royalty splits and price ceilings can help beat ticket scalpers in a way that is not possible with the dynamic pricing employed by Web2 solutions, which more commonly adversely affects fans than it does ticket scalpers.

Additionally, it allows fans to sell their tickets on secondary marketplaces and recoup some of their original investment if they cannot attend an event for some reason.

Airdrops - A greater connection and a more immersive experience

Airdrops are a key feature enabled by NFT ticketing and blockchain technology.

Blockchains record the ownership of assets hosted on them, such as NFTs. For NFT tickets, artists and event organisers can use the blockchain to airdrop perks and rewards to wallets that hold current, past or future event tickets.

The ability to airdrop ticket holders from past or future events can extend the live experience for fans, either building excitement before the show or airdropping unique NFT souvenirs afterwards to help relive the moment. It's all part of making fans feel closer to the performers and artists they love.

NFT airdrops can be several different things. From discount vouchers to VIP access passes to rare media recordings or images of the event, NFTs are already being used to enhance the fan experience across many different live events.

The potential of airdrops is vast. Not only do they offer fans a reward for their loyalty and extend the experience, but any NFT airdrop they might also be able to sell as a collectable, potentially giving fans tangible value from their ownership of an NFT ticket.

Increased Commercial Opportunities

For artists, performers and event creators, NFT airdrops offer a versatile way of creating a more immersive show for fans. Best of all, the broad nature of NFT airdrops means that they can be done at a potentially minimal cost to those minting the NFTs. Artists can mint first-person images or videos, which can be airdropped mid-concert for an enhanced experience.

Similarly, NFT airdrops can include discount vouchers for merchandise and food, or early access passes for tickets to future events. These items also come with minimal financial outlay on the part of event organisers, while still giving fans and attendees a reward for their attendance and loyalty.

At this point, it is worth noting that any NFT can be governed by smart contracts that set royalty splits, meaning should fans choose to sell an NFT, it's possible for the original party that minted it to receive a percentage of the revenue generated by the sale automatically.

The potential of airdrops is vast. Not only do they offer fans a reward for their loyalty and extend the experience, but any NFT airdrop they might also be able to sell as a collectable, potentially giving fans tangible value from their ownership of an NFT ticket.

NFT Membership

Airdrops are not the only feature of Web3 which has a benefit for fans and event organisers over Web2 solutions. It's also possible to implement a new type of loyalty programme in the form of NFT membership cards.

NFT membership cards can come with the same perks and benefits of a traditional membership programme. Loyal fans and die-hard supporters can buy them, and brands can use them to tailor hyper-specific content that rewards certain tiers of the NFT membership cards.

Using NFTs as membership cards is more flexible than traditional membership programmes in the sense that fans are able to sell them to other users if they no longer wish to be a member, but they can also be issued as soulbound NFTs if you want to prohibit their sale or transfer. The transparent nature of blockchain technology also allows you to identify current NFT membership card holders and reward them directly with digital collectables, perks and incentives via airdrops directly to their wallets.

Not only is revenue generated during the initial sale of the membership cards, with the scarcity of availability being a key factor, but they too can be governed by smart contracts. This of course means if an NFT membership card is sold, it can still generate additional revenue for the brand that minted them originally via royalty splits.

Interestingly, the Web3 model of NFT membership cards provides a two-way offering in terms of value for both customers and the brands. Brands are incentivised to offer NFT membership cards with genuine value for fans, who have sometimes shelled out large amounts of money for them (Coachella's Infinity Key went for around $250,000), but in turn, fans benefit from the high level of utility. If it comes to a sale of the NFT membership card on the secondary market, the effort the brand has put into maximising its offering will have a direct effect on the price the NFT goes for. With royalty splits controlling revenue assignments for secondary sales, both the original owner and the brand stand to gain from a strong NFT membership programme.

Eliminating fraud

We've mentioned already that blockchain and NFTs can eliminate fraud. This is thanks to how blockchain networks store the information they hold. With all the information securely encrypted, time-stamped and distributed amongst the network, they provide an irrefutable ledger for all the transactions on them.

This means that NFT tickets purchased on SeatlabNFT are guaranteed to be authentic. So whether it's a primary sale from the box office or a secondary sale on the marketplace, you can be sure that your ticket will get you access to the event on the day.

Peace of mind 

The blockchain provides an immutable ledger for the data held on it, effectively eliminating the possibility of fraudulent tickets. Fans buying tickets on the SeatlabNFT secondary marketplace can be sure the ticket they are buying is authentic, meaning no nasty surprises on the door!

Cons for Fans

Early adoption 

NFT technology is still only emerging; as a result, not all events are ready to switch to NFT ticketing. It's still early days, and until now, only a select few events have utilised true NFT ticketing. Unfortunately, without NFT ticketing, it's not possible to take advantage of the benefits the blockchain can offer for live events.

Thankfully, we've more than a decade of combined experience in the live events industry, so we know what it takes to make a successful event ticketing platform for artists, performers and event creators.

To help promote NFT ticketing, we've launched our Event Creator Fund grant programme, giving away £1,000,000 to sponsor live events. We wanted to help events of all sizes understand the benefits of NFT ticketing, that's why there is no minimum or maximum grant, and we'll consider events of all sizes and types. Grant money received is completely non-repayable, and all applications are reviewed in person on a case-by-case basis.

Alongside our Event Creator Fund, we're showcasing our NFT ticketing platform at various launch and activation events, starting with our pioneering collaboration with Lost Village festival. These events will help demonstrate the power, versatility and benefits of NFT ticketing to the community in several different ways.

Environmental impact/longevity

We often hear people concerned about the potential environmental impact of blockchains or the high gas fees (transaction costs) for using them.

We've chosen the NEAR Protocol blockchain, certified climate-neutral, to ensure we are operating sustainably for our planet. The NEAR Protocol is also built on a unique sharding design which means, unlike many other blockchain networks, NEAR Protocol transaction fees are minimal and will stay that way.

Wrapping up

SeatlabNFT is excited to be part of the Web3 revolution and we are looking forward to disrupting the event ticketing industry with our innovative NFT ticketing marketplace. While we continue to work on developing our platform, we will also continue to spread the word about how blockchain can change the event ticketing industry.

We also have several other exciting plans for community involvement in our project, including exclusive NFT membership cards and some major events planned. It will be a busy few months for us, and we have some big announcements coming up.

We want to help artists and event organisers form a closer relationship with their fans and make attending live events more immersive and rewarding for all involved. We're also empowering artists and event creators to gain back control over the secondary market with features like royalty splits and price ceilings.

The result is an improved experience for everyone in the live events community and an NFT ticketing platform genuinely designed with that community in mind.

Keep your eyes peeled over the coming weeks for more announcements about our activation events that will showcase how we're redefining event ticketing.

If you’d like to know more about how SeatlabNFT can help with your NFT and blockchain ticketing needs, reach out to our customer support team by emailing support@seatlabnft.com

Don't miss out on the latest SeatlabNFT updates