Using Web3 domains as proof of community membership, creative or overkill?

I run a small NFT project with about 500 holders. I'm looking for ways to give my community perks without spending a lot of money or building complicated infrastructure. Someone suggested using Web3 domains as membership passes, basically, mint a custom TLD and then give registered subdomains to community members. Then you can check membership by whether someone owns name.yourproject. Has anyone tried this? Is it worth the effort compared to just checking wallet holdings? I like the idea of giving members a usable asset, a domain they can actually use for wallet addresses, but I'm not sure if the juice is worth the squeeze.