Building loyalty with Blockchain: tokenized communities burst onto the scene

In previous articles we’ve discussed how significant blockchain’s emergence has been for esports in terms of income and sponsorships, but we must also highlight the possibilities this technology offers for an industry with enormous growth and a huge audience. Let’s dive into a key issue: how blockchain can be an ideal way to retain that very audience.

When people think of blockchain and esports, the first thing that comes to mind is news about trade deals. For example, FTX is the new naming sponsor of TSM; Fnatic introduces Crypto.com; Coinbase sponsorships keep rolling in; Bybit has even more, and so on. The term NFT (non-fungible tokens) is also front and center, with organizations such as OG, G2 Esports, Fnatic, and many others. Moreover, some people may think of Team Vitality and Team Heretics, who have their own tokens. But there is much more on the horizon.

Blockchain and its derivatives can provide great value when it comes to retaining esports’ greatest asset: its audience. G2 Esports and Fnatic, two of the world’s most innovative teams, are the first to take the plunge. At the beginning of the year, G2 announced its Samurai Army: Gen Zero, a kind of benefit club powered by NFTs. Fnatic followed in G2’s footsteps at the end of March with three subscription tiers for unlocking different rewards and experiences.

Create and connect communities globally

These first steps we’ve discussed should be just that: first steps. Esports is one of today’s most popular forms of entertainment, measured in terms of audience and revenue, but there is still room to increase audience loyalty and generate greater revenue streams. That’s where blockchain can make a big difference.

There’s an amazing array of benefits and experiences that community members can access through, for example, the implementation of tokens (paid or not): experiences and events such as closed tournaments, private chat channels, meet & greets, or exclusive content; a sense of belonging when participating in the team’s decision-making process; rewards such as gifts, sweepstakes, discounts, or promotions; access to exclusive products and collectibles such as merchandising or NFTs; and so much more!

Through gamification (the application of elements of video games to give rewards), community members can earn more tokens. The more you engage, the more tokens you get. Of course, these tokens can also be marketed and become a new revenue stream for the team, based on each organization’s decisions and strategies. Tokenized communities are right around the corner.

Blockchain-backed tournaments

Esports organizations are holding more and more tournaments for the communities, but they’re not alone in this endeavor. Even non-endemic brands are organizing tournaments to reach those audiences. Numerous platforms offer this service, and some teams are developing their own as well. What would happen if the experience of playing in tournaments was enhanced by tokenizing communities? What would happen if the prizes for playing were tokens that not only unlock exclusive benefits but also have economic value in and of themselves?

Blockchain has brought with it, among so many things, two extremely important features for esports tournaments: transparency and universality. Transparency means users can see the tournament’s make-up in terms of registrations, payments, and prizes, which lends the event trustworthiness. Universality allows people from all over the world to vie for a currency that can be used anywhere on Earth.

Users have an extraordinary range of possibilities at their fingertips:

• Play their favorite titles
• Compete with friends in tournaments and leagues
• Represent their community at global events
• View leaderboards and rankings
• Watch tournament livestreams
• Get collectibles for reaching milestones
• Win prizes and rewards through the tokens obtained

Giving back value to the community

We’ve said it before, but it bears repeating: one of esports’ greatest assets is its audience. Esports fans are unique in their extreme loyalty to their team, their favorite players, and their favorite streamers. Are the teams, players, and streamers returning in-kind that same loyalty and passion?

Tokenizing audiences could prove to be the best way to add new value and offer unique experiences. Exclusivity generates identification and a sense of belonging, and allowing a follower to access exclusive pieces, experiences, and content through participation could be the next step along the path to building audience loyalty. At Fitchin we strive to make that journey easier and more accessible for everyone.