There are countless NFT projects in the web3 space, some more popular than others. The number of projects in the space makes it nearly impossible to make some noise and create a meaningful impact. Investors are increasingly more difficult to please. They’re looking for more than art and want benefits beyond their initial purchase. The utility topic is all the rage in the NFT community. Offering perks alongside your project is a way to gain more collectors and community interactions. More than ever, creators are trying to find ways to please their collectors by offering free airdrops, merch, and more.
How Successful NFT Projects Are Embracing Utility
Projects such as Bored Ape Yacht Club and Crypto Punks are some of the biggest NFT projects in the space. Bored Ape Yacht Club threw a huge party in NYC called “Ape Fest” for their holders. Eminem and Snoop Dogg performed, showcasing the reach and power of the collection. Quantum Art is the world’s largest NFT photography platform; they offer Quantum Keys. Quantum Keys grants users access to the Quantum NFT gallery in Santa Monica, California. The Keyholder has access to what they call “The Hub,” a workstation filled with snacks, games, and art displays.
Why Some Artists Are Against It
Artists are now trying to devise creative ways to reward their holders, but this has become a problem in the web3 space. Artists such as “Drift” have spoken out against the idea of utilities. Many artists believe that their art should be collected because collectors are connected to it, not because they may receive a reward. Art was once collected because of the love of a particular piece, along with the passion and inspiration the art invoked. Artists now seem to be more focused on what they will offer a collector rather than the art they’re creating. The more artists have to focus on things outside their art, the harder it becomes to create.
Creative Ways to Offer Utility
Despite the issues, artists are still finding creative ways to offer utility. Some artists offer meet and greet, and some offer products such as merch, including hats and shirts. Metaverse events are very popular utilities as well. Some collections offer free concert events in the metaverse, virtual gear, and more.
One of the most popular ways to reward collectors is whitelisting for new launches. When a collector buys an NFT, the creator will put their wallet address on a list that will allow them to be the first to mint the next launch. This type of perk is popular because if a project does well, having the ability to mint the next launch can prove fruitful in the future. There have been many collectors that have seen great profits from being whitelisted for upcoming projects.
Having some utility has become the standard when releasing an NFT project. Collectors are more likely to invest in a collection that offers perks. Artists have adapted to this model and are actively working on more ways to please their collector base. It will be interesting to see where these creators take the utility model of NFT releases. One thing is for sure; utility is an essential component to any NFT projects success.