Background

First we look at the latest data on forefront token holdings. From the FAQ (https://ffdao.notion.site/Forefront-Season-2-FAQ-62903ac3ac5345e9ab22b69499f01d35), 1000 $FF tokens gives full access to Forefront’s Governance Channels and voting and the question states 100 $FF tokens provides access to the Signal group. So here we are interested in understanding the holdings across these 3 groups.

NFT vs Tokens

The follow up is trying to understand whether this token ownership model makes more sense or whether an NFT based ownership makes sense to gate this access. To answer this, we'll first look at the distribution of the balances of holders of FF. Note: we excluded holders that hold >5000 in the below plot to have clean axes.

All this data is based on the balance snapshot of the date below.

We can see that there is only a fairly modest spike at the 100 token balance and similarly at the 1000 token balance. This indicates that although there is interest in having these benefits, holders are willing to hold more tokens than the minimum threshold. We can confirm this by looking at the most common balances (rounded to nearest 10).

Notes

Based on this data, the current token ownership model makes sense as it allows holders to have varying degrees of investment. Also, the token ownership model is able to scale to an unlimited number of users, whereas an NFT model will typically be capped at the number of NFTs initially minted.

Also, NFTs are also not as liquid as tokens and this can cause hesitancy to test out whether the benefits are worth the investment.