Non-fungible tokens (or NFTs), in short, are no longer about owning a piece of digital art. As creators grow communities around their NFTs, they have also become innovative about creating multi-tasking NFTs.
NFT utility expands the value of digital art on the blockchain to more than just art. Many naysayers say NFTs are only as popular or valuable as the perceived value of the creators and collectors. The utility offers a significant reason to increase the marketability of your NFT and make it an even more useful collectable. It also provides a counter-argument to whether the current NFTs trend is just another medium for art.
As an NFT creator, you can offer a lot of value to the holders that purchase your tokens with the utility. What is some possible NFT utility you can suggest? In this article, we explore three different options:
Community space for NFT holders to gather and network
NFT holders form a tight-knit community, since they usually purchase these pieces when they identify similar interests or values. Some NFT creators centre their utility by capitalising on this need for connection, such as Friends with Benefits, which allows Web3 creators and artists to come together to share ideas. To gain access to the FWB community, potential members must purchase their tokens.
Hanging out virtually to share ideas and build connections can be helpful, but as communities around NFTs develop, people will crave a physical space to put names to faces and network. One of the options you can offer your community is a place to gather.
If you are an NFT creator in Singapore looking for a space without paying too much, consider co-working spaces in Singapore. There are so many different places in convenient locations, and they have different themes too. Whether you want a formal meet up or a more casual communal space, you can decide on the place you like.
Purchasing your membership options from an app like Deskimo also gives you the flexibility to choose what office you want and when you want to book the rooms for meetups. With food and snacks provided at most co-working spaces in Singapore, you can easily organise meet-ups for your NFT holders.
Offering food and drinks for NFTs
Another exciting utility you can offer is for holders to convert their tokens into physical food and drinks. Take Blockbar. Its brand’s bottles are stored in a warehouse in Singapore while minting NFTs.
Owners of the NFTs redeem their tokens for the actual bottles, and once sold, the NFT is removed from the system, increasing their rarity. The holders also get their drinks to celebrate.
If you are a cafe or restaurant owner looking to get into the NFT scene, consider the example of Flyfish Club. It only allows holders of its NFT to access the restaurant, increasing the value of their tokens.
Since people generally appreciate exclusivity, your NFT token can act as a pass to exciting new restaurants. For existing food and beverage (F&B) owners, this is another possible avenue to consider for marketing!
Last but not least, an excellent way to offer utility is to provide token holders with a chance to exchange their tokens for exclusive merchandise such as clothing.
MIRL (Made in real life) does just that, allowing holders to redeem custom made wearables. Fashion NFTs are popular amongst NFT holders as they will enable them to mark their style and reflect their personality, transcending Web3 limitations.
You can also take inspiration from CloneX by RTFKT, which set out to create digital fashion NFTs usable in the metaverse. Token holders can forge NFTs to create unique sneakers in virtual worlds and metaverses. Plus, with Nike’s acquisition of the fashion NFT, holders of CloneX get to wear these sneakers out in real life.
Ultimately, like any start-up, NFTs are accountable to their investors. By giving the token holders plenty of utility with their tokens, you, as an NFT investor, provide value to them and extend the sustainability and marketability of your NFT creations!