Starting an NFT collection is not easy. Starting an NFT collection with actual utility people are willing to pay for? That’s even harder. The 2021 NFT wave saw numerous collections offering exciting perks and benefits to their holders, but with so many collections launching every day, it can be tough to stand out. If you want to launch an NFT collection that truly captures attention beyond your audience, you need to offer your holders something truly valuable. Consider implementing one of these 12 NFT utility ideas to not just ride the NFT wave — but dominate it.
1. Physical Merch
With how digital the world is becoming, physical products always stand out and get the fans going. Invisible Friends launched an NFT collection with streetwear brand, KITH, allowing NFT holders to redeem physical Invisible Friends x KITH merch. Popular NFT collection Azuki also released their Twin Tigers collection in the same year, allowing all NFT holders to redeem an exclusive reversible jacket.
2. Digital Merch
For smaller creators looking to stay prudent on the cost front, digital merch might be the way to go instead. In April 2022, Nike launched their CryptoKicks collection with RTFKT (which has since been acquired by Nike). CryptoKicks is a collection of digital sneakers designed after the popular Nike Dunks sneakers. The appearance of the sneakers can be modified using Skin Vials, which are a separate NFT collection.
3. Music Royalties
An often underexplored aspect of NFTs, NFTs can also be used to share royalties with die-hard fans in the community. EDM artist, 3LAU, did just that. As one of the early proponents of NFT use in music, 3LAU set up Royal.io to allow royalties to be distributed to fans who are holding specific NFTs. Holders of 3LAU’s ‘Worst Case’ were paid out their first set of royalties in July with almost USD 20k being paid out to holders.
4. Exclusive Access to New Drops
NFTs can also be utilised to gate exclusive access to new drops, be it merch, events or even other NFT collections. Steve Aoki created his A0K1VERSE with his NFT collection, A0K1 Passports, allowing holders access to a wide range of future rewards.
5. Allowlists
With many creators, their roadmap extends beyond the genesis collection to include further collections in the future. One good example of this is in the PROOF Collective. Proof started as a community of NFT artists and collectors, gated by the PROOF Collective NFT. This NFT also granted holders the right to mint PROOF’s next collection, Moonbirds. Moonbirds performed exceedingly well on launch, reaching a floor price of almost 40 ETH at its peak.
6. Access to Events
NFT ticketing has been a hot topic in the NFT utility space lately, and for good reason! NFT ticketing allows a unique ticketing experience for eventgoers and eradicates the risks of fraudulent tickets. In fact, music festivals such as Coachella and Tomorrowland have already begun using NFTs for ticket-gating their festivals or exclusive segments of the events.
7. Memorabilia
Beyond just ticketing for events, these tickets also serve as memorabilia after the event. These NFTs also serve as proof-of-attendance at the event. Such NFTs can help creators or event organisers connect with fans who attended prior events. They also, of course, grant bragging rights to the holders of said NFTs.
8. IRL Meetups
It’s hard to write an article on NFT utility without bringing up one of the most unique NFT collections, VeeFriends by Gary Vee. Different NFTs in the collection grant holders a variety of perks including meals, mentorship sessions and even workouts with Gary Vee himself. Talk about exclusive!
9. Charity and Philanthropy
Looking to support a good cause? Some creators and organisations have chosen to use NFTs to raise funds for causes they feel strongly about. The World of Women NFT collection has donated funds to causes such as the Ukraine war effort, climate activism and the fight for LGBTQIA+ rights among others with the proceeds from their NFT sales and auctions organised in conjunction with charity organisations.
10. Token Airdrops and Token Yield
Tokens can also be given to holders via airdrops or through yield from locking up their NFTs. Beyond monetary value, such tokens can unlock new benefits such as entering raffles using tokens or through voting using tokens. Yuga Labs famously airdropped the Apecoin (APE) token to all Bored Ape Yacht Club (BAYC), Mutant Ape Yacht Club (MAYC) and Bored Ape Kennel Club (if paired with a BAYC or MAYC) NFT holders. The token would eventually be used to power the entire APE ecosystem in games, events and others.
11. Voting Control Over Treasury
In many communities, fans wish to participate in decision-making and determining the direction of their communities. With NFTs, this can be achieved. Blue-chip NFT collection, Nouns, has established a Decentralised Autonomous Organisation (DAO) structure in which NFT holders are able to propose and vote to determine how funds are spent. In the past, Nouns have successfully passed a proposal to start their own Esports team and even their own clothing brand.
12. Private Community
Much like events, communities can also be gated with NFTs. Such communities generally revolve around a shared interest or passion such as art, music, trading or just building. Gmoney launched his very own NFT collection, Admit One, which allows access to a private group of thought leaders, builders, collectors and Web3 enthusiasts.
Despite the huge rise and fall in prices of NFTs in the last year, creators continue to explore and push the limits of what is possible with NFTs. In the coming year, we’re excited to see new forms of utility be tested and pushed out into different NFT collections and their communities.
Utility NFTs are just getting started. Now is the time for creators to tap in.
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