How to find the best utility for your NFTs projects

The global non-fungible token market was valued at USD 15.54 billion in 2021 and is expected to grow at a compound annual growth rate of 33.9% from 2022 to 2030. The growth can be attributed to the increasing demand for NFTs worldwide due to their uniqueness, individuality, and transparency, among other features. NFTs are indivisible and cannot be distributed among multiple owners. This ownership advantage offered by NFTs ensures that the buyers are safe from fake NFTs.

Launching your own NFTs project is not just about creating randomized NFTs and minting them on marketplaces for sale, it’s much more than this. A good project will need to market what it offers aside from the NFT, especially a good roadmap and utilities. 

What do we mean by Utility? And how to create utility for your NFTs project? 

 

What is NFTs utility?

A utility refers to what the NFT’s added value is – this could be a number of different things, but essentially they provide some type of value to either the NFT holders or a broader community.

NFTs with utilities can be considered to be functional NFTs that serve a specific purpose. Providing value is one quick way to foster a positive brand image and attract investors. Moreover, a realistic roadmap, on top of good utilities, lends your project the image of being an organized, long-term project fit for investment.

 

Top 5  ideas and Examples of Utility NFT

Donate to charity

Community is at the heart of every successful NFT project and donating to worthy causes is a great way of bringing attention to the cause while doing something positive as a group. In fact, quite a number of successful NFT projects such as World of Women were primarily started with charity as their main goal. 

Be sure to check local laws about regulations for charitable donations and ensure that there’s a solid plan in place to ensure you can make your project’s donations in a transparent way.

Example Gainforest: 

It is an international non-profit based in Switzerland, focused on using blockchain technology for safeguarding rainforests. People donating to GainForest can receive NFTs representing the actual forest locations. The NFTs could help the owners in tracking the health of the forest and minting governance tokens. 

 

Access to special events

Similar to offering merch, you can be extremely creative with what types of exclusive events or items you offer. The simplest would be allowing holders special avatars in a videogame or access to an exclusive Discord channel. Most projects already have Discord channels, but you could offer a little bit extra with an exclusive Discord channel that would let holders chat with like-minded members, developers, and any other prominent figures in your community. Additionally, you could host a Metaverse event upon selling out or throw a party for reaching an anniversary and such. Exclusivity is key here.

What’s important is to periodically engage with your community and to offer items or events that they would be interested in.

Example Veefriends:

The VeeFriends NFT collection has been launched by Gary Vaynerchuk. The utility of the NFT collection is that holders can use them as tickets for the VeeCon conference. In addition, VeeFriends also includes collectibles with different advantages, such as mentoring sessions from Gary. 

 

Offer merchandise:

It’s pretty obvious – offer your own merchandise! Well, this might be a bit overdone, but you can absolutely be creative about what types of merchandise you offer. Wearables that bear your project’s logo are a great conversation starter between your project community and the broader NFT community.

Don’t just stop at t-shirts though, do consider other items that your community might want and will catch the attention of others. Perhaps if you have a music-inspired project, you could offer your own set of customized earphones which are bound to be a hit with audiophiles!

Example CryptoBaristas:

Crypto Baristas is a collection of NFTs which is all about the “complete caffeine experience” for all owners. The Crypto Barista NFT holders could receive discounts at online stores or future café locations as well as on merchandise.

Co-owning metaverse real estate

The Metaverse is a great converging point for your community, providing a personalized place for NFT holders of all walks of life to hang out together. Besides, investing in the Metaverse could be a sound long-term investment for your project, so it serves two purposes at once.

The limits are endless too – you could host community events in the Metaverse and grant access to token holders if this is also something on your roadmap.

Example Sandbox

The Sandbox Metaverse is made up of LANDS, which are parts of the world, owned by players to create and monetize experiences. There will only ever be 166,464 LANDS available, which can be used to host games, build multiplayer experiences, create housing, or offer social experiences to the community

 

How to create The perfect NFTs utility for your collection

Make NFTs Redeemable:

Some of the best NFT utility ideas are attached to having redeemable goods, physical or digital. As an artist, you may offer a particular painting redeemable when a person buys your NFT. You could ship the physical painting to them once they buy your NFT or you could send them a digital painting.

Another idea is having a competition where the person with the person holding the highest number of your NFT tokens receives a valuable product, for example, original hand-drawn art from you. People love having access to original and rare art, therefore, this will make turn your NFTs into utility-based NFTs.

 

Link your NFTs collection to property rights:

Find a real-world need and find a method to incorporate it into the NFT environment. When investors buy and hold shares in the stock market, for example, they receive dividends based on the percentage of shares they own. Similarly, you can provide a proportion of dividends to be paid to NFT holders after a set length of time. You can also explore real-world areas where you can contribute value with your NFT and benefit your holders. Binding your NFTs to specific material and granting transferrable ownership rights are two examples. If your NFT provides free online courses and the holder sells them to someone else, the new owner should be able to use them.

 

Conclusion

NFT utilities offer value and could even help your project stand out in the crowd. A well-crafted roadmap and attractive utilities can draw in the buyer you’re looking for. Additionally, utilities such as events and merchandise can foster a stronger sense of community among holders. While you may not strictly need utilities for your project to be successful, it is something you can easily do that will add great value to your project.

In conclusion, an NFTs project is not just a piece of art that you create and put on marketplaces for sale it’s a process and value that you give to the buyer, that’s why you need to read about how to promote your NFTs collection?