As a creator in the NFT space, I get asked this question very frequently. While I believe that art is its own utility but in order to differentiate your digital asset from many others and further increase its demand, adding another utility works really well.
What is NFT utility and how important is it ?
Utility for an NFT means a clearly defined intrinsic value in addition to the usual scarcity associated with NFT as a digital asset. These utilities could means exclusive access to opportunities provide only to token holders.
To further elaborate, some creators do grant access to
- Exclusive experiences
- Early access to products
- Exclusive invites to events with top celebrities/athletes, and much more.
We recently witnessed Yuga Labs add an additional utility to the Bored Ape Yacht Club NFT when they air dropped thousands of APE tokens to each of their NFT holders. These tokens were given to these holders for free and could be traded on multiple exchanges for either Ethereum or other stable coins for the purpose of cashing out.
These APE tokens will have a further role to play in the Metaverse that Yuga Labs are launching. Today, anyone can buy the APE token on an exchange but the early access and free airdrops to this valuable token speaks volumes of how utilities can help skyrocket the demand of an NFT project.
In conclusion, utility for NFTs are without a doubt the future of NFT technology, with NFTs demonstrating the amount of innovation possible with blockchain technology through use cases such as BAYC. The introduction of APE Token could signal the start of a paradigm shift in the generative art landscape as the world quickly moves towards conducting their lives in the metaverse.