NFTs (non-fungible tokens) are fast becoming a core part of the web3 economy. But, while many see them as fancy jpegs or pngs, the best NFT collections are using utility to add real value and create loyalty for their holders. From proof of ownership to access passes for events, there are a range of different NFT utility types that you can implement within your collection.
The simplest and most obvious way of adding utility to an NFT collection is through access. By adding this type of NFT utility, you can give your community the opportunity to experience something exclusive and unique. This can include everything from access to events to a behind the scenes look at products or services.
Another way of adding NFT utility is through a rewards system. By allowing your community to earn points that they can then redeem for special features or products, you can encourage engagement and loyalty within your NFT collection. This is an excellent way to reward your audience while also promoting brand awareness.
Many brands are leveraging the power of NFTs by creating token-gated content that can be accessed by NFT owners. This can include anything from exclusive interviews or behind-the-scenes videos to special episodes of a podcast. This type of NFT utility is a great way to give your community a taste of what it is like to own your collection.
A more traditional approach to NFT utility is through memberships and event tickets. By allowing your NFT holders to use their tokens to gain exclusive entry into events, you can build community and drive loyalty. This can be done through in-person gatherings or online, by way of the metaverse. Examples of NFT-powered event memberships include VeeCon, created by Gary Vaynerchuk, and the NFT-backed Doodles project.
While the perks may seem relatively simple, they have helped many NFT collections achieve success and gain a large following. In some cases, these perks can even be worth more than the physical product itself. For example, the 501(r) NFT utility from Levi’s gives its holders a lifetime warranty on their jeans, demonstrating that they are built to last.
As with any new strategy, it is important to carefully consider the risks and benefits of implementing NFT utilities within your collection. It’s also important to communicate the details of any NFT utilities with your audience, ensuring that they are clear and understandable. By taking the time to develop and implement NFT utilities that are aligned with your brand’s vision, you can ensure that your NFT collection will stand out from the competition.