NFT Utility — Why Is It That a Big Deal?
Non-fungible tokens (NFTs) have evolved rapidly in the last two years. However, things are changing again. If you’re an NFT enthusiast, you would want to revisit your collection strategies, especially if you want to stay ahead of the market.
One of the emerging NFT paradigms that redefine collection is utility. In other words, NFTs are no longer a badge of honour for flexing rare art piece ownership. Utility adds another layer of underlying application in the NFT, making it even more valuable.
But what is utility NFTs? Look at these digital assets as interactive, driven by user-based or future-centric applications in the Metaverse. There are various NFT utility classes, including:
- Access NFTs — gives users access to exclusive community membership, experiences, as well as premium content
- Engagement NFTs — users can leverage these NFTs to engage among themselves within a platform
- Fantasy NFTs — these NFTs allow users to build teams, structures, and even real estates in the virtual world
- GameFi NFTs — these NFTs facilitate various activities in a gaming universe
NFT utility is critical as far as the industry’s mainstream and institutional adoption is concerned. It is the first step for enabling NFT enthusiasts to explore the industry’s potential beyond limits in terms of business applications and fuelling Web3 growth. For instance, users can leverage NFTs to buy land in the Metaverse, such as Decentraland, and develop real estate projects.
Other NFT utility projects with a solid impression in the industry include:
The Bored Ape Yacht Club (BAYC)
The BAYC NFT collection features 10,000 unique Bored Ape NFTs procedurally generated on the Ethereum blockchain. Although this collection has one of the most expensive floor prices in the industry, its high value is justified by the underlying utilities, which are only accessible by the collection holders. For instance, each Ape in the collection gives the holder access to an exclusive Discord server where club members interact with the who is who in the industry, including celebrities.
The BAYC club has a membership cap of 10,000, which is enough to make a vibrant ecosystem community. Since every ape is unique and there will never be a duplicate version, BAYC members can even commercialize their NFTs and use them as profile pictures or digital identities on social media platforms. Other perks of owning an NFT in this community include free future NFT and token airdrops from the BAYC.
VeeFriends joined the NFT industry with 10,255 tokens that can both be leveraged as digital collectibles or social utility tokens. The creator, Gary Vee, also introduced 268 characters that embody the most positive attributes he admires in people. The project opted for the name “friends” as it is an IP empire geared towards promoting unique social interactions that will continue to evolve with different stages of Gary Vee’s life.
At its core, this project is about access and utility. For instance, besides getting real access to the community founder Gary Vee, members of this community can also participate in Veecon, the most coveted and anticipated annual NFT event in the industry. The utilities in this project are subdivided into three categories, including 9,400 tokens for new members' admission, 555 gift tokens, and 300 tokens for access. However, out of the 300 access tokens, only 108 give a one-one with Garry. Users can choose what they want to do when hanging out with the funder.
The NFT industry is experiencing exponential growth. More NFT projects with practical utilities and real-life use cases are coming. Browse our blog to read other articles and stay updated.