Oxalus Insights

How To Add Utility To An NFT

Guides Nov 29 2022

Utility NFTs are digital assets that go beyond their financial value to provide additional benefits to their holders, such as membership privileges, entry to exclusive online content, or special access to exclusive experiences.

It is anticipated that utility NFTs would play a pivotal role in propelling the mainstream adoption of NFTs technology in the current market, which is rapidly maturing.

To survive and thrive in the NFT industry, brands need to constantly explore new ways to increase the utility of their NFTs.

Read on to discover why utility is so important to NFTs and how to add utility to an NFT!

Why Is Utility NFT Important?

While hype may have played a role in NFTs’ meteoric growth, the technology’s practical utility will ultimately drive their mainstream adoption.

It’s the end of 2022 and the NFT hype is officially over. 

When the NFT concept began to spread in late 2020, the excitement of a new technology combined with celebrity endorsements fueled the NFT craze and made 2021 “the year of NFT”. 

After almost two years of NFT dominating the market, the novelty has worn off and some of the celebrities who once endorsed NFTs now are now feeling the pinch. Recently, Justin Bieber made headlines because the value of his Bored Ape NFT, which was originally worth $1.3 million, had dropped to just $69,000. 

The overall market is not doing any better as DappRadar reported that OpenSea’s trading volume has dropped from an all-time high of $254.36 million in May 2022 to a low of $2.78 on November 23, 2022, a decrease of 99%.

But that is not the end of NFTs as the next development stage will be mainstream adoption driven by utility NFTs. 

The NFT hype has completed its mission of bringing this technology to early adopters and attracting the big players to dip their toes into the NFT world. Meta, Twitter, and Reddit are among the big social media companies that have declared their commitment to the future of NFT mass adoption. 

NFTs, in order to achieve this future, will need to demonstrate their value and usefulness to a sizable user base and establish themselves apart from competing for digital assets. Utility NFTs, the most practical and useful form of NFTs, will allow this to happen.

>>>Join us on Oxalus Wallet App to receive more NFTs news, helpful hints, and hidden gems.

How To Add Utility To An NFT?

You can add utility to an NFT by providing additional products, services, consulting, and exclusive access to holders. Check out a few ideas below!

Make Your NFTs Redeemable

Some of the most promising concepts for NFT utilities involve redeemable goods, including both digital and physical ones. Your NFTs’ associated redeemable items might be anything from artwork to tickets to vouchers to coupons to merchandise. Ensure that the preferences of your target market are reflected in these items. As an artist, you may, for instance, offer a certain painting in exchange for the purchase of your NFT. If you own a fashion or cosmetics company, offering NFT holders free products or discount coupons is not a bad idea.

Create Membership for NFT Holders

It’s a terrific idea to use NFTs as an alternative to membership cards especially when your brand has established a fanbase. Basically, when a person holds your NFTs, they become community members and are eligible for member-only perks. The Bored Ape Yacht Club (BAYC) has successfully used these strategies by granting NFT holders membership to The Club and all of its benefits, including the million-dollar worth of NFT airdrops, access to a private Discord channel, and access to VIP events.

Link Your NFTs to Real-World Assets & Services

Tying your NFTs to tangible assets and allowing for the transfer of ownership rights will be highly effective when applied properly. 

Like shareholders in the stock market, you can stipulate that NFT investors get a certain percentage of dividends after a certain period.

Other real-world applications of NFTs that might be of interest to their holders include service bundles. If you run a personal training business, for instance, you could throw in a free session of in-person or remote training with the purchase of every NFT. Consulting, fitness instruction and education are just a few examples of fields where providing a service via NFTs would be a logical next step.

Provide NFT Use Cases In The Metaverse

Your NFT can be added with features that expand its usefulness into the metaverse. If you have NFT clothing, for instance, the user character should be able to don them in the metaverse. The virtual fashion platform RTFKT recently generated almost $3 million in seven minutes from selling virtual sneaker NFTs, which can only be worn in the metaverse.

NFTs as Tickets to Performances & Events

One day, perhaps, we will buy NFTs on Ethereum as concert tickets instead of physical ones to see Justin Bieber perform. Among the most probable sectors to see the widespread penetration of utility NFTs is the entertainment business, where celebrities have outsized influence over their adoring fans’ purchasing behaviors.

Offer NFT Holders Voting Rights

If you give holders, your users, a say in how the brand is developed, you’ll likely end up with a better product and happier customers. Your NFT holders will also place a high value on it since they get to participate in developing the brand and enhancing their own experience. That’s a situation where everyone benefits.

Offer Airdrops or Whitelist Slots For NFT Holders

This is probably the most popular and most loved utility by NFT holders. However, nowadays, crypto people are more selective when it comes to airdrop and whitelist opportunities. Therefore, make sure your airdrop or whitelist program is simply too attractive and valuable to miss! 

Capturing The Value Of Utility NFTs, Not Just Collectibility

Users and investors have become more prudent with their money as a result of the NFT market’s progressive maturation. Collectible-only NFTs are no longer satisfying their tastes because they expect their NFTs to bring more value and less risk. As a result, NFT brands need to adapt so that they can take advantage of utility NFTs and profit from the next NFT surge.

Free Newsletter

Always stay up-to-date with the latest news

Maybe you like

My Cart (0)

Empty cart

Add items, and see how much

gas you can save

Connect Wallet