The concept of utility has sparked many discussions about the potential use cases of NFTs beyond just collecting artwork. The domain of NFTs is still in the early stages of exploring real-world use cases.
In contrast to NFTs, utility NFTs serve a practical purpose within a specific platform or application. The key characteristic of adding utility would be its ability to grant NFT owners special privileges.
These NFTs that explore and transcend the Web3 space can be valuable to both the community and creators.
List of Utitlites in an NFT Collection
Here are some NFT utilities integrated into various NFT projects to build their communities.
NFT Customization
NFT projects can offer holders of their NFT the ability to mint exclusive items, characters, and skins in the game. However, some projects also allow holders to mint their customized NFT and list them on any marketplace.
Holder Merchandise
Any wearables with the project’s logo are an excellent way to start a discussion with a larger NFT community. Instead of just t-shirts, offer a selection of personalized items based on community requests based on the NFT theme.
Membership
NFTs can also be used to represent membership cards for a private collection or DAO. Holders can access various activities and services within the project’s ecosystem.
Educational Resources
The project can give its holders access to certificates or incentives on a blockchain-based learning platform.
Loyalty Rewards
NFTs can also be used to represent loyalty rewards. Here, NFT could be used as a token earned by making purchases and redeemed for discounts or exclusive offers.
Exclusive Content and Events
NFTs would grant holders access to a private Discord channel or in-game special avatars. Additionally, creators could host an IRL or metaverse event after selling out or in celebration of milestones like anniversaries.
Project Governance
NFTs can also be used to represent governance and voting rights. Thus granting its holder the right to vote on important decisions within a DAO or community.
Holder Discounts
NFTs can also be used to represent discounts or promo codes. The NFT holders will receive a discount on a purchase or service on the platform or any partnered third-party apps.
Exclusive Airdrop
Another popular strategy is to airdrop a small number of NFTs to early adopters of the project, especially in the early stages of projects.
Social Cause
Every successful NFT project is built on a sense of community, and donating to worthy causes is an excellent way to raise awareness of the issue as a community. However, the project should have a transparent process in place for donations, or else things can go downhill.
Metaverse
The metaverse can be a unique space for NFT holders to socialize and bring the community together. In addition to many other features, creators of projects can host special events, add NFT-based customizable avatars, buy land in the metaverse, and much more.
Profit Distribution
Sharing profits with holders is a way to encourage people to talk about the NFT project. Some employ a plan in which a certain profit percentage is distributed to all holders, while others host a giveaway of a profit percentage to holders when they reach certain milestones.
DAO
Projects can create DAOs to nurture their communities. In short, NFT holders can vote on future community initiatives, such as whether to raise fees, donate to charities, start new initiatives, invest, and so on.
In addition to the utilities mentioned above, you can attach a variety of utilities to your NFT collection.
Start creating your NFT collection on the AngryMonky Marketplace.
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