My random thoughts on scaling, tokens and in real life use cases for NFT‘s. As I am mostly operating on Solana, my thoughts are mostly about Solana projects.
To scale NFTs a project would need something that gives value and excites people, not only in the Crypto and NFT space, but also „outsiders'' who generally donˋt have anything to do with this. So first of all, I thought about things that get people‘s attention and some examples:
- social interaction/community
I wrote down ideas and examples for these topics down below. Some of these are nothing new and already exist, some might be new. I excluded stuff like breeding as this article leans more towards use cases outside extending the NFT collection. I don‘t know every existing project or idea so I just wrote down what came to my mind.
A lot of people become attentive to NFT´s as a way to make quick profit or see this as a good opportunity to enter a growing market early. These big sales of NFT´s for hundreds of thousands of dollars get mentioned in some news and catch the attention. Gets you thinking that there may be money to be made, at least that's how I got introduced to NFT´s.
What monetary ways do NFT´s provide to keep you interested?
Obviously trading NFT´s, but I could write a whole article about that itself, so I am not going to elaborate it further here.
Defi is another part that catches the attention and can bring value to people, who would not want to earn, for example, 5% on their investment instead of the measly amount you get from a bank (the defi part is bigger, but NFT`s could be included as part of it). It may be by providing Defi applications, reviews for already existing defi dapps, ICOs or crowdfunding for buying NFT‘s, crypto or real estate and giving something back to the holder. Maybe you know some financial advisors, accountants, professional traders or whoever that would like to provide their knowledge to the community. Could be included as part of holding a NFT.
As it is often done already, alpha seems a good way to get people interested and excited, as it can be a good way to make profit with someone that already knows the space. Also alpha groups give you a community. You can ask questions, get tips and make friends there. An alpha group helped me get a better take on Solana NFT´s, I am no expert about this by any means, but I now know more than when I started due to alpha groups. A lot of alpha groups are for free, if you can get in, and alpha is often included in NFT projects anyways. In my opinion it still is a good way to excite people for a NFT project.
Now to some nicer topics than money.
The NFT could be used as an entry card for a real life or metaverse event of some kind (like the Veecon) for networking purposes, exchange of ideas, presenting of your own project and stuff like this. In the future this will probably be a normality, as it can easily be used for concert tickets, sports tickets and more. It will be impossible to fake an entry card, as it is secured by the blockchain. If you for whatever reason decide not to go or can´t go for personal reasons, it will be easy to sell or give the ticket away for free. It will save a lot of logistical work and money for the organizer. These tickets could be made only available in the native token (earned through staking or whatever) of a project. So in this way there would be a “real world” usage for a token and the respective NFT´s ecosystem that everybody can access, but NFT holders would have an advantage as reward for holding.
You may know someone who plants their own vegetables and might want to sell them to the community of the project. You could use the token gained through staking for it. There could be a local beekeeper who you could introduce to some new customers too. Let‘s say the NFT project has a supply of 10k, 4k individuals own a NFT, 1k are in the right place in the world to be in reach for honey from this beekeeper, but only 100 people do like honey and would use the opportunity to order honey from there. Would be an opportunity to extend the reach of this beekeeper and provide some utility for your community. Of course there would be need for something the beekeeper could use the token for, other than just selling it for USDC (or any other crypto) in order to not pressure the price of the respective token down and for the ecosystem to stay sustainable. Maybe options to develop a market for locally grown food.
Someone of the community might brew his own beer or make beverages of some kind, ask them if they would possibly offer that in exchange for the specific token earned through staking. You could go to a local winery and ask them if they would offer a wine for the community, maybe make their own wine, the community decides what the wine would be named. Compare it to the example of the honey, there might be some small/local shops that would like to do that. They would most likely need help with setting everything up, but if you offer help and explain it to them, they may be open and agree to it.
You could gain access to a certain restaurant or get discounts there, of course the owner of the restaurant would have to benefit in some way for such cooperation.
Most of these ideas are focused on small and local shops as big corporations will not care as much about 100, 200 or however many new people. At Least not yet!
The use cases for gaming seem more obvious as NFT‘s and tokens can be used as in game items or as in game currency. There are still different ways to use the ingame currency. Use it as „gold“ so the main currency in which almost everything is paid in game. Or use it as a premium currency which you can buy skins,chest, upgrades or whatever for. The game could be play to earn (P2E), which seems like most projects developing games are looking to do. For a game to have a lot of players it needs to bring excitement over and over again and the earning part should not be the main selling point of a game. It's cool to earn for playing, but who is going to buy stuff, if the game is no fun at all.
Would probably be hard to implement, but something like geocaching combined with NFT´s could be fun. You could get rewarded with a NFT or a token for finding a hidden place/object somewhere in the world. I see a possibility to build an economy around it with outdoor equipment, travel companies or whatever comes to your mind.
Access to gaming contests with prizes, maybe get sponsors involved and provide a prize pool. In cooperation with streamers this could be a good opportunity to bring attention to your respective project.
Humans love doing, watching and learning sports. Sports play a big role in a lot of people's day to day lives. Then why not reward someone for something they like and do on a regular basis anyways. Like in the section above this could include sports brands for sponsoring or cooperation with them.
Professional sports is a big part that will drive mass adoption of NFT´s in my opinion. Fan culture being a really important factor on that part. I slightly mentioned sports tickets in the community section above.
There are probably a lot more aspects to these topics, especially sports, but the article is already longer than I wanted it to be.
I can‘t tell how easy or hard these ideas would be to implement, but these are some ideas I got regarding the usage of NFT‘s and their respective token (given they offer staking, but most projects do in some way). But I am sure parts of the community would like to help improve the ecosystem, as they themselves would also benefit from this. Asking does not hurt anybody.
Tell me your thoughts about the stuff I wrote, stay friendly and give constructive criticism so I can learn from this for possible future articles.
Have a nice day and keep your head up!