How to create utility for NFT?
We’ve been reading this question on the internet for a while now. As Non-Fungible Tokens’ popularity continues to skyrocket, creators, collectors, and enthusiasts alike are constantly seeking ways to enhance the value and functionality of these unique digital assets.
That’s why we’ll discuss multiple methods for integrating utility into your NFT projects and explore how creating utility increases your digital collectibles’ overall appeal and worth.
From gaming and virtual reality to decentralized finance and social networks, the possibilities for NFT utility are endless and limited only by your creativity.
What Does NFT Utility Mean For NFT Holders?
Utility NFT means value and applications. The more opportunities and access to real-world applications the NFT creators give to their projects, the better.
You provide solid use cases so collectors purchase your NFT for more reasons than uniqueness and scarcity. What’s more, utility to an NFT means to give buyers exclusive access to content or redeemable products.
For example, have you wondered why the NFT project Bored Ape Yacht Club (BAYC) is such a fine piece of NFT?
Because NFT enthusiasts that purchased this digital art have access to member-only features. One of them is called The Bathroom.
Here, holders collectively create graffiti one pixel at a time.
Adding utility could be something as simple as:
- Providing unique experiences in the real world
- Including airdrops
- Giving access to new NFT releases
- Joining private events
- Getting lifetime membership access
- Providing VIP membership cards
- Having voting rights
Utility NFTs is a great way for creators to ensure future sales and benefit purchasers. It’s a solid win-win at a time where NFTs aren’t in their best moments.
How NFT Utilities Create Value For Creators?
NFT utilities bring something else to the table than just the usual NFT attributes. Hence, NFT utility, meaning something useful, is how token holders find projects interesting.
The boom of NFTs came when people saw they could make huge profits from them. But after the crypto bear market and NFT scams happening during 2020 and 2021, the entire NFT market became suspicious of all new NFT projects.
Perhaps the NFT market generated $2 billion in 2021, but we may not see these numbers again if users don’t gain access to something worthwhile.
When you create value on your NFT token, you can:
- Reach wider audiences
- Get more NFT purchases
- Increase your community in the NFT environment
- Boost possibilities for NFT reselling
- Keeps NFT values
Best NFT Utility Ideas For Long-Term Value
The following NFT utility ideas will work for the five NFT categories:
- Fantasy sports NFTs
- Gambling NFTs
- Social NFTs
- Community NFTs
- In-game NFTs
Now, let’s break down what you can do to improve your possibilities in the NFT world.
Use Merchandise That Aligns With Your Digital Asset
Artists and creators can develop merchandise according to their brand and NFT.
You can offer relevant goods that come in counterparts for purchasing your NFTs. This way, holders will see that your art has usability.
For example, if you have a sports-theme NFT, you could send a wearable NFT jacket inspired by your brand. An NFT jacket adds utility and shows a real commitment to your purchasers.
Other forms of merchandise include:
Just ensure it’s free and includes shipping costs.
This is a redeemable NFT methodology you could use to catch the attention of many people in the NFT community!
Develop Connections With The Real World
What’s more critical than redeemable NFTs? That you create connections with the real world.
When you do that, you use blockchain technology combined with traditional methods that allow people to identify with your NFT art.
Some of the things you could offer are:
- A share percentage from your profits
- Access to free online courses
- Membership NFTs that give access to certain benefits
- Participate in geeky events
You should also allow exchangeability. So, if your NFT gets resold, the new owner should also access the same benefits.
Make Them Useful Throughout The Metaverse
Have you heard about the Metaverse?
If you want to build utility to your own NFTs, you better.
This is a computer-generated world where people, brands, and things can interact within the blockchain. This means you can apply utility to NFTs if you find practical ways for your brand to interact with holders.
Let’s put you in this situation: Say you are a musician who published an NFT song. If you think about usability, you could allow people to use your song in the Metaverse, maybe a game or a virtual environment.
This will give them a higher ownership feeling due to the provided utility.
Involve Collectors Through a Decentralized Autonomous Organization (DAO)
Starting a DAO is one of the best among the three utility NFTs ideas we discussed above. This organization allows holders to have a voice in the NFTs’ future.
This means you get to vote about:
- Upcoming projects related to the NFT
- Current and future fees
- Possible investments to help the project grow
In most recent NFT projects, DAOs have played a crucial role in their development, especially regarding tokenomics. So, consider applying it to build more trust in your project.
NFT Collection as a Fundraising
Entrepreneurs and developers can take the NFT dive to fund their projects and give holders benefits for being part of your business.
There are clear examples of other NFT projects like IncubateX, which intends to generate an impact in the real world with their proposals.
Compared to digital artists and other creators, you could add utility to NFTs if you use the funds to develop real assets.
So, let’s say you want to build a shoe store. You could create digital sneakers that resemble the ones you’ll sell – underlying valuable attributes – and use them as tokens so holders make benefits as your project progresses.
The NFT tokens receive direct usability while you provide real-world value.
Give Service Access
The NFT redeemable characteristic is more than just exchanging tokens for products. You can also apply this for services.
Let’s say you have a vintage German plastic cooler company. You’ve developed NFTs to increase brand awareness and decided to provide exclusive expertise consultations to each person who buys the NFTs.
You can also apply that to different industries like:
- Music industry
When you link physical goods with your NFT – for supply chain tracking purposes – you find practical applications and ways to add utility in the Metaverse so that users connect with you.
Prepare Meetup Events
Meetup events provide trust to your audience and potential buyers. They can see your face and share conversations with you. This is a huge value added to your NFTs, as other digital assets tend to ignore this aspect.
To establish the meeting point, you could drive polls. This way, you could align the place to your NFT theme.
For example, tech conferences or fashion houses, depending on your niche. You can also host metaverse events, so worldwide owners join.
Give Part of The Profits To Charity
Charity. Oh, this selfless activity captivates people, and it’s part of most companies’ social responsibilities.
You can also apply it to your NFT gains and market your project based on that. The audience feels privileged when they are part of something greater.
Applying this utility to your NFTs may seem less valuable when investors buy your NFT. Yet, they will see this as a personal commitment from you and your company.
Make NFT Drops To Buyers
This is a practical application of utility when you are a well-known artist or have built a community that appreciates your work.
But what about applying NFT airdrops while being new? This is likely a failed utility attempt. Why? Because holders won’t estimate your work as a crypto artist.
So, to apply utility to your NFT using airdrops, you can:
- Close strategic partnerships with well-known creators.
- Prepare online or physical art as a reward for purchasing the digital painting.
Of course, you should consider what to give away as drops.
For example, if you buy Coca-Cola NFTs, you won’t receive a physical Coca-Cola refrigerator. Instead, you’ll get a digital painting.
Add Utility AMAs For NFT Collectors
NFTs offer anonymity. Yet, many NFT buyers want to connect with creators and know about them.
So, hosting AMA (Ask Me Anything) is a great way to bring utility that many projects don’t do, and you only need an internet connection to provide it.
Here you can share your knowledge, the advantages of owning your NFTs, and how you came up with the idea.
Consumers will ask you about your past, evolution, etc. All this creates a deep connection between you and the holders.
Provide Early Access To Exclusive Digital Assets & Opportunities
Early access means preparing a whitelist to access exclusive benefits for owning your NFTs.
You can connect NFTs listed in a marketplace to that record so that any person who buys your assets is added automatically.
Then, you could use that information to let them know:
- When you’ll release a new NFT
- If you’re hosting VIP events
- New markets opportunities
- Intellectual property rights discussions
- Physical lectures events
Unlike physical art, you can give NFT holders opportunities to find valuable and collectible perks.
Utility-Based NFTs Are The Future
The future of NFTs lies in their ability to create unparalleled utility, transcending the realms of art and collectibles.
As you continue to explore and expand the digital landscape, you’ll see NFTs hold the potential to redefine value, ownership, and interaction in the virtual world.
To harness this potential, creators, developers, and investors must focus on designing innovative use cases that enhance user experience and provide tangible benefits.
By integrating NFTs into industries like gaming, real estate, and even education, we can revolutionize how we transact, communicate, and engage with the digital space.
NFTs can become the backbone of an all-encompassing virtual ecosystem, unlocking new economic opportunities and fostering global connectivity.
NFT utility paves the way for a more dynamic and inclusive digital world where creativity, innovation, and collaboration are the cornerstones of success.