NFT: Long-Term Value as Opposed to Speculation

There are countless NFTs being published around the world, most of which offer their buyers only short-term speculative opportunities. However, research shows that the market for these NFTs has contracted the most over the past year. Demand for over-hyped, feature-less jpg-based NFTs has declined, while in contrast, many new features and use cases with long-term value are emerging in the market.

There have been many challenges to NFTs in the recent past. In fact, the long crypto winter and the incredible oversupply have driven prices down significantly. However, the market is moving much more towards consolidation and there seems to be one segment, the area of utility-based, dynamic NFTs, that has marginally lost popularity.

Tulip fever — this is the term that may have come to mind for those who have been highly critical of NFT technology. There are indeed some similarities with the first economic bubble in the 1600s, but the lessons to be learned are worth reflecting on. Although in the beginning, a single tulip bulb could buy a house, later, after the market had normalised, it was still possible to make an excellent income from growing this valuable plant. Thinking along these lines, the future of NFTs points much more towards the success of commonly used, not-too-expensive solutions.

Unmediated Solutions
NFT and smart contracts add value to solutions and services where previously a lot of working time or an intermediary embedded in the process was needed. The proven uniqueness and originality offer huge opportunities for industrial manufacturing technologies and the automotive industry, for example.

NFT can even appear as a validation tool in copyright and industrial property protection. It is increasingly being suggested that scientific publications and textbooks should also be tokenised.

Many start-ups see NFTs as an alternative source of funding, and community funding and charitable donations are also significantly simplified.

Discount and Loyalty Programs
The potential of traditional coupons and loyalty cards, which are prevalent in the retail sector, is turbocharged by the versatility of NFTs. Fully bank- and cash-independent schemes are made even more attractive by low-cost implementation options.

Pre-payment and discount solutions can also be useful for retailers. Efficient “cash-back” and subscription schemes have also emerged as NFT use cases.

It may sound surprising, but NFTs can also be used in pensions or other types of “financial” reward schemes. NFTs have been used by publishers for some time to share a part of their revenues with their customers. A wide range of bonuses and perks can now be paid directly in crypto, and some of these already operate in systems where the internal payment instrument of an ecosystem is collected in the NFTs of its members. Such systems can thus operate their own internal sales and community incentive solutions.

Galaxis and the Universe

Galaxis.xyz has been running projects where NFTs are set up with a long-term goal in mind for a while. The internal distribution system of its own platform is also powered by its own token, Dust. Dust appears, or more precisely accumulates, on special cards issued by Galaxis, providing its holders with a sufficient amount of payment assets.

The point of loyalty programmes is not that the accumulated tokens are immediately converted into dollars by the users, but that the necessary amount of payment instruments for the operation of the system appears in the users’ wallets. The circulation is then guaranteed, as the system is powered by the users’ purchases, and the internal market of the community becomes the engine of the system. The NFT can provide useful middleware for this.

If all the infrastructure needed to run a community is in one place, there is really no need for an intermediary. In the long term, NFT is thus transformed from a speculative, short-term value into a kind of long-term investment. It is an opportunity to create entirely new solutions in almost every field, as content owners, athletes, artists or start-ups can all take advantage of it. And users can be part of a vibrant and opportunity-rich community through their NFT, which can act as a pass, membership or credit-card.

Written by Tamas Peter Turcsan

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Disclaimer‌‌

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