POAPs (Proof Of Attendance Protocol) are unique NFT badges based on Ethereum data to you for participating or participating in special events. Events can be in the physical world, online or in the metaverse. They were invented as part of the ETHDenver2019 hackathon and can be considered lasting records of your life experiences. Or virtual concert tickets with crypto registration.
What are POAPs?
POAP is an abbreviation for Proof of attendance Protocol, or, in Portuguese, Proof of Attendance or Participation Protocol. This project was created in 2019 in an Ethereum hackathon. Since then the number of users has grown exponentially. And it looks like it’s all in the beginning, but it looks very promising. POAPs were originally created on the Ethereum mainnet, but in 2020 they moved to the xDai side chain. The focus of this side chain is fast and cheap transactions, and for that reason, POAPs can be minted (created) at virtually no cost.
If you are interested, it is possible to migrate them from xDai to the mainnet. But with the high fees these days, most users prefer to keep them where they are. POAPs can also be a testament to your achievements, such as your involvement in an online or offline community. Attendance protocols are also given to commemorate in-game events.
As representative of real-life experiences, POAP NFTs connect the physical and crypto worlds. They show that you are more than an Ethereum address by linking your off-chain (or real-life) physical presence to your on-chain presence. In a way, POAPs add a touch of humanity to the world of cryptocurrencies and create a credible record of your activities in both worlds.
How does a POAP work?
When you participate in an event or reach a milestone for which POAP badges exist, you will receive one. It’s that simple. You can also use it to access a big event or an exclusive online group. POAPs work much like other NFTs. Each proof of presence protocol is unique. They were first created for official POAP smart contracts on the Ethereum blockchain. To reduce transaction costs, POAPs have migrated to the Gnosis chain (formerly xDai), a cheaper and faster Ethereum side chain. Virtually anyone can make a POAP to mark a special moment. But there are three conditions for an NFT POAP:
- Must be minted via official POAP smart contract
- Must contain metadata related to a specific date or period for up to one year
- Must contain an image associated with the specific event
You can only mint a POAP for an event in a single wallet. That’s because each represents participation — and you can’t participate in the same single event twice. POAPs are different from other NFTs in that they are free for breeders and collectors because there are no gas fees involved.
There are no set rules that dictate which events can have POAP badges or how big an event needs to be to have one. Some large events may even have multiple POAPs. As long as you can create and approve them, you can have POAP NFTs for your virtual or in-person events. You can then invite people to mint and win gifts.
What are POAPs for?
Several communities in the crypto world are already using POAPs. At Bankless Brasil it is used for community meetings and also for immersions. Over time this can be one of the indicators used to find out who are the most active people in the community.
Those who participate in activities in different communities and events will build a portfolio or even a decentralized curriculum with evidence that they are involved not only in a specific group, but even in a broader subject. Imagine you have webinar POAPs related to programming, finance lives, healthcare events, rock concerts, football games and as far as your imagination allows.
But there are other interesting possibilities. For example, POAP.fun allows you to do a lottery for those who have specific POAPs. This is usually something common at events such as giveaways, discounts, promotions, etc. This is a great way to do this in a decentralized and transparent way. There is also POAP.vote, where you can submit questions with multiple choice answers allowing a specific group of people to respond or vote. I’m not going to explore all the possible possibilities of this here in this article, but we can easily glimpse the possibilities of this feature. There is also POAP.chat, which allows you to create a message or chat room for those who have the same POAP.
Interesting of all this is that POAPs can cover many different areas and interests. Professionally speaking, I believe that in the near future they will be accepted for job interviews. And, of course, I hope this interview takes place in a room in the Metaverse. In addition to the social part, people will interact with those who have common interests and exchange experiences with each other, all in a decentralized way.
Here are some ways people are using POAP NFTs:
- Cryptocurrency Events – You will likely receive an NFT POAP at your front door if you attend a global cryptocurrency conference like Binance Blockchain Week or Paris Blockchain Week. These are typically simple badges that you can take away as a souvenir of the event.
- Blockchain Games – In traditional games, players are rewarded with decorative items or badges after defeating a boss, beating a certain number of hours, or participating in a major event. Many blockchain games also use POAP NFTs for the same purpose — to celebrate a milestone or special event.
- Cryptocurrency Communities – POAP NFTs are becoming a popular way to encourage and reward active members in communities. For example, holders with more POAPs in some communities have special privileges, such as greater voting power in surveys or DAO project proposals.
- Outside the World of Cryptocurrencies – POAP NFTs are not unique to cryptocurrencies. They can be issued as souvenirs with sentimental value to wedding guests or souvenirs to concert attendees, to name a few. In addition to souvenirs and souvenirs, POAP NFTs could function as a blockchain-based curriculum. As data is permanent and easily verifiable on the blockchain, employers may prefer a POAP resume to view and authenticate a candidate’s work experience.
What is the main objective of a POAP?
The main purpose of a POAP is to prove presence. Here are some examples of different ways POAP NFTs are used:
- To show presence at events
- To access private events, such as an invitation to add pixels to a digital artwork or attend weekly community meetings
- As security authorization for private groups
- Collectibles to show you are a fan of someone or something
- Gifts or rewards for achieving something, such as being in the first 100 listeners of a podcast
- Souvenirs, such as a game jersey worn by a professional athlete
- Invites to vote on protocols, participate in face-to-face meetings or participate in private chat rooms
While there are numerous use cases for POAP NFTs, they are not used much by people outside of various online crypto communities. Event organizers for these groups create badges for attendees of their podcasts, on-site conferences, virtual events, and in-person seminars.
But some off-chain businesses — like Warner Music Group, US Open and Lollapalooza — are entering the POAP ecosystem. Recently, rapper Kevin Gates handed out POAPs to attendees of his show at the Red Rocks Amphitheater.
Why should you choose POAPs?
People usually create a POAP collection so that they can get unique 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 will gain in POAP-exclusive community polls, which is a big plus if you want to evaluate governance proposals.
For DeFi and cryptocurrency enthusiasts, POAP collections can serve as an on-chain curriculum. You can get more NFTs by attending and participating in more crypto events or protocols. It can build your reputation by creating a verifiable 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.
Monetary benefits of collecting POAPs
Sometimes collecting POAPs can also earn you money. If you have an exclusive POAP badge from a super exclusive event, you can sell it for a lot of money. For example, there was recently a POAP on OpenSea titled 999 Club: Genesis for almost $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 profit of $22.500! Another benefit of keeping these collectibles is that creators can send NFTs to wallets that have collected POAPs. That way you can get more Tokens without needing to stamp them.
Bottom Line
The world of NFTs is an endless source of intriguing resources that offer new possibilities for value creation. Compared to some of the crazy costs people are willing to spend for some NFTs, POAP is pretty reasonable and can usually be claimed for free (aside from gas). While not “exclusive”, they are an easy way to get started with NFTs. So the next time you attend a cryptocurrency event, be on the lookout for QR codes to claim your POAP and start your collection.
