Non-Fungible Tokens (NFTs) offer a new way to sell and distribute digital art and have the potential to unlock new revenue streams for artists in the digital age. Here are five ways to monetize your digital art with NFTs.
fractional ownership
This involves dividing ownership of an artwork into smaller parts and selling them as tokens, allowing multiple investors to own a stake in the artwork. For example, an artist can create 100 tokens for a piece of art and sell them to 100 different buyers, each of whom owns a piece of the piece of art.
Related: How do you assess the value of an NFT?
dynamic NFTs
Dynamic NFTs are a type of NFT that change over time, creating a unique and evolving experience for the owner. Dynamic NFTs can use external data sources to update the artwork, such as social media feeds or real events.
For example, “The Eternal Pump” is a dynamic NFT that changes in response to the rise and fall of the cryptocurrency market. The artwork becomes more complex and elaborate as the value of cryptocurrencies rises, while it becomes simpler and more abstract as its value falls. By allowing viewers to follow changes in the artwork and see how it develops over time, dynamic NFTs can bring a new degree of engagement and engagement to collectors.
I feel incredibly lucky to have been one of the lucky few to choose one of @dmitricherniakworks of The Eternal Pump, in the @artblocks_io Playground artist today. Another impressive body of work from a fantastic artist. pic.twitter.com/NRywp1kQaC
– pixelpete (@pixelpete) February 22, 2021
Dynamic NFTs can be monetized through an auction, where collectors can bid on them and the highest bidder takes over. Dynamic NFTs that are highly sought after, due to their unique features and evolving nature, can fetch high prices at auction. Additionally, using subscription-based systems, artists can offer collectors exclusive dynamic NFTs for a fee. These NFTs can change frequently, offering subscribers a constant stream of new content.
Royalties
NFTs can be programmed to automatically pay the artist a percentage of the sale each time the NFT is resold on a secondary market. This allows artists to continue to profit from their work even after the initial sale. For example, digital artist Pak sold an NFT called “The Fungible” for $502,000, and the NFT was automated to pay the artist a 10% royalty on each subsequent sale. Since then, the NFT has been resold multiple times and the artist has earned over $2 million in royalties.
X/X: Cube
Expendable* Open Editions
The number of owned cubes will deliver a custom set of NFTs that total the same count of expendable cubes. pic.twitter.com/p5qO4NgHJp
— Pak (@muratpak) April 6, 2021
gamification
This involves creating non-expendable interactive tokens that users can play with or use in games. For example, Axie Infinity is a game that uses NFTs as in-game assets, and players can buy, sell, and trade them to build their game characters.
Additionally, NFTs can be given as a reward for achieving particular goals or activities in a game or app. For example, a fitness app might offer non-expendable tokens to users who meet their daily training goals.
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Physical asset linkages
NFT physical asset linking involves linking a physical object to a unique digital asset, typically using a unique identifier or code. This can provide a way to verify the authenticity and ownership of the physical object, while also allowing the transfer of ownership and value of the associated digital asset.
With that being said, an NFT can be used to represent ownership of a physical asset, such as real estate or a car. For example, a company called CarForce is developing NFTs that reflect ownership of high-end cars, with the NFT acting as a digital car key that allows the owner to enter and operate the actual car.
Related: What is tokenized real estate? A Beginner’s Guide to Digital Real Estate
