Why NFTs should have the utility to unlock unique features.

Non-fungible tokens (NFTs) are a temporary trend and a gateway for creators to unlock a variety of unique features. This vision goes beyond the initial excitement around NFTs as digital collectibles. Thus steering towards a horizon where practicality and utility prevail.

This evolution in the NFT market has been supported by industry experts who say that NFTs can greatly enhance user engagement and community building when designed with a focused service.

NFTs as utility tokens

The essence of NFTs, like keys, lies in their unique digital DNA. Indeed, each token is a separate entity, a single point in a digital chain that can be programmed to grant access, unlock experiences, or display specific functions in a digital ecosystem.

This is not just a theoretical concept, but a lived reality on platforms like Minttable. Here, NFTs are a passport to unique digital realms of user engagement and the inherent value proposition of digital assets.

This usage ethic of NFTs is a boon to innovators, opening doors to new monetization strategies. Beyond initial sales, the diversification narrative around NFTs can be a sustainable source of income. Moreover, it allows the creators of the secondary market to earn royalties with each change of hands, which creates a sustainable financial model.

Of the 11 key factors to consider, NFT utility is the most important factor in motivating people to buy, while disruptiveness is the least important factor… At least 3 out of 4 NFT holders consider how much utility a portfolio offers or considers. What kind of benefits can you get before you buy,” CoinGecko reported.

Ronnie Dahan, CEO of SIRKL.io, told BeInCrypto about the potential for NFTs to provide additional layers of value, such as paid groups or on-chain ancillary channels.

“Instead of focusing on short-term incentives, NFT creators must adopt a long-term service-oriented approach. Smart contracts offer unique opportunities to create NFTs with real utility, such as fractional ownership, exclusive access to content, or community management. These combinations show how utility can dramatically increase the value of NFTs.” And they show that engagement and satisfaction among NFT owners is strengthening,” Dahan said.

Read more: NFT Trading: A Guide to Introducing Intangible Tokens

Community and investor engagement is at the heart of this emerging narrative. An engaged community is not just a temporary bystander, but a valuable co-creator.

Dialogue between creators and the community, through open communication and active listening, fosters a strong ecosystem around NFT projects.

“68.8% of NFT holders buy because they want to join the owner community and the project team. For blue chip or future projects, this could mean being part of a popular network that can raise the owner's social status or provide exclusive resources. In addition, people like You may be drawn to NFT communities of interest or value, or where you find new friends.

Dahan emphasized the importance of community engagement, describing it as the foundation of success and the need for continued NFT efforts.

“In a volatile market like NFTs, responsiveness is key. Being aware of trends, listening to the community and iterating the project accordingly is critical. One must continuously evaluate user feedback and adjust features to keep them relevant. Additionally, strategic collaboration and open communication with the community will help navigate market fluctuations, ensuring continued interest and value in our NFTs,” added Dahan.

Eco-friendly and safe

In the midst of this digital renaissance, the environmental impact perspective looms large. The carbon footprint of blockchain activities is a pressing concern, driving innovators to eco-friendly blockchains.

This narrative of green ethics, which explores ways to reduce environmental impact, can enhance the reputation and value of NFTs.

“Innovators can reduce their carbon footprint by choosing environmentally friendly blockchains. Investor awareness can be truly influenced by environmental issues, valuing environmentally friendly NFTs more and aligning projects with society's growing environmental values,” emphasized Dahan.

The journey of NFTs from digital innovation to practical value is a long-term vision. In fact, it's a mix of real utility, feedback-driven continuous iteration, and strategic collaboration.

Dahan's mantra is to prioritize the right tool, engage the community from the start, and adopt a feedback-driven iterative approach.

Read more: 10 Best NFT Marketing Agencies to Promote Your Digital Art

In this digital odyssey, authentication and fraud prevention are also paramount. Blockchain technology ensures traceability and differentiation of NFTs, establishing a fortress against fraud.

Still, Dahan is committed to providing certification and education for safe and sound NFT industry advocacy.

“Raising awareness and educating about fraud risks is key to maintaining a secure environment for our users and NFT projects. Although blockchain technology provides traceability and differentiation for NFTs, it is important to implement verification processes and partner with reputable platforms to ensure the security of NFTs,” concluded Dahan.

The NFT space is ripe for maturity, with more focus on consumption, sustainability and community-based initiatives. Dahan's vision is optimistic, envisioning a market where environmental concerns are addressed and technological advances push NFTs into the broader digital consciousness.