Overview :
In this article, we going to show you every type of NFT utility that projects are using right now. I will back all this up with examples so that you have a clear understanding of how these mechanics work and how you as an investor or nft holder, can benefit from this and knowing this critical information can be very helpful for you to pick out those projects, which have a high potential to blow up and make you those sweet sweet gains and just a quick note as always, “I’m not a financial advisor just the guy sitting in my office doing my research and sharing with you what I’m doing in the nft market“
Let’s now check our top nft utility:
- DAO :
the first utility is called a dow or in other words the decentralized autonomous organization, i know that can be a mouthful but a doubt is simply where members come together ,to vote on how to spend a pool’s fun then the funds are moved automatically by smart contract to that winning project ,when votes pass so the difference between decentralized and a centralized organization is simple you can see here centralized is where you have one Main person who makes all the decisions whereas decentralized like i explained is where a lot of people come together and has an influence and gets to vote on what they want this is the whole point of the web 3 world where everyone’s voice get heard and they get a fair share of the ownership, and here’s a classic example of the dow project it’s called mutant cats and this profile project acts as the doubt from their website you can see the explanation here that the mutant cats team are able to fund their dow wallet by using the royalties that they’ve made from people buying and selling on open this dow then builds up the funds to be able to buy top blue chip nfts and hold it into their wallet so now if you go to fractional.art you can see here this is the mutant cat’s vault where they have a whole heap of blue-chip nfts like mute navy yacht club crypto punks pool cats and a whole heap of others and even some for denzes and board apes so this is how their dow has value backed by top nft blue chip projects and now this leads me to the second utility which is
- Staking :
staking and utility token, this will allow you to earn a project’s crypto token by locking Up your nfts, and earning a passive income so an example of this utility is a project called slotty, this project is an online game project where holders of these nfts will earn a percentage of the project’s income, you can see here the slotty community becomes the house 150 casinos by adding nfts to the slot machine you can think of it as where you can stake any of your nfts into the slot machine and earn high holders reward, so as i said when this project makes money you’re going to make money along with them so it’s a win-win kind of situation, and with regards to the token they have the watts token and you’ll receive 10 watts per slotty that you own per day and right now each watts is worth two dollars and eighty cents so you’re going to earn 28 dollars per day by owning this nft, this is a great form of passive income because this is almost a thousand dollars a month right now another example of this utility is called galaxy fight club it’s a crypto game which has tokens and you can bring other profile picture projects like four-day yacht club and use your character in the game so i think this is a pretty unique project from their white Paper here you can see the rarer your character is the more coin you’re going to earn per day so if you have an exotic galaxy fighter you’re going to earn 50 g coin per day and if you check out their token price that’s gonna hand you about seven eight dollars a day, that’s also not bad right especially when it’s on the polygon blockchain and you don’t have to pay much for the gas fees.
- Burning
Next utility is burning and no it’s not catching on fire it’s just the act of converting one nft into another form so in this example, I have for you is called the blockchain miners club project and in this project, you bring together two blockchain miners and you burn them so essentially getting rid of them and then you produce one new nft or the ultramarine and that becomes this set here and initially this project started with 11 111 items and after burning it’s going to reduce to half so this is a great mechanic for reducing the supply and making your nft rarer and if the utility of burning is enticing enough it can be a great way of increasing the value of this project.
- Breeding
The next utility is breeding now this is very similar to the previous utility of burning, But breeding doesn’t remove your original nft from the existence it’s simply producing another nft from your original so the supply is going to increase an example of this is a project called kaiju kings and you can see from their website, if you combine two genesis kaiju you’re going to be able to produce a baby kaiju so this can be done to give investors an incentive to hold their nft, and not sell it because you’re going to produce a token which can be combined with two of your nfts to make another nft which you can sell you always have to remember the nft you produce needs to have a utility in order for it to be worth anything okay moving on to the next utility and that is :
- Lanuchpad
Launchpad can be a great utility if done right launchpad nft projects is a place where new nft projects looking to launch and need help with marketing, will come to a launchpad project and offer up a large percentage of their nft collection in exchange for marketing help, and to spread the word about the nft project and the benefit for you holding that launchpad nft, is that you get rare access to new upcoming projects which other people can’t get their Hands on, so an example of this is the dogepound nft project you can see here previously they were the official launch pad for the journey crypto nft project, which is now worth over three ethereum so if you want an nft white list by holding this doge pound then you’ve made some good money on it already, another example is a magic mushroom clubhouse they do a very similar thing where they negotiate a deal with future upcoming nft projects and get a big chunk of nft whitelist to provide to the magic mushroom holders so in this case they had 300 whitelist spots which you only have a chance to win if you’re one of the mushroom holders now moving on to the next utility this one’s one of my favorites and that is
- Access
Having access to something exclusive or something that is in high demand can make your nft be worth a lot of money, so some example of this is one of the originals and that is the vee friends collection, i’m sure you know this is run by the og garyvee and the access that you get from this is that every v friends holder will get access to vcon for three years, what’s vcon it’s a very hyped up nft conference which will be happening in may This year so if it gets in high demand which it already is and the price is going to go through the roof and it makes sense because it’s backed by something real talking about something real the next example is links down now this project is very ambitious they’re trying to buy a golf course where their nft holders will get access to the golf course and the club and be part of the member so you can see from their website, they plan to have their club open by the end of 2022 or early next year and if you own this nft you’re a membership of this golf course and you can go out there and have a swing.