NFTs in brand collaborations can enhance user loyalty through on-chain identity binding. By linking unique digital assets to a user’s blockchain wallet, NFTs create a verifiable, immutable record of ownership, fostering a sense of exclusivity and personal connection to the brand. These tokens can unlock special perks, such as limited-edition products, VIP experiences, or community access, incentivizing repeat engagement. On-chain identities also enable brands to track user interactions transparently, tailoring rewards to individual preferences. This strengthens trust and emotional investment, as users feel recognized and valued. Moreover, NFTs’ interoperability across platforms allows seamless integration into loyalty programs, ensuring long-term engagement. By leveraging blockchain’s security and decentralization, NFTs transform traditional loyalty systems into dynamic, user-centric ecosystems, driving deeper brand affinity.