5 ways to monetize your digital art with NFTs

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Non-fungible tokens (NFTs) offer a new way to sell and distribute digital art, and have the potential to open up new revenue streams for artists in the digital age. Here are five ways to monetize your digital art with NFTs.

fragmented ownership

This involves dividing ownership of the artwork into smaller portions and selling them as tokens, allowing multiple investors to own a stake in the artwork. For example, an artist can generate 100 tokens for an art piece and sell it to 100 different buyers, who each own a share of the artwork.

Related: How Do You Evaluate an NFT’s Value?

Dynamic NFTs

Dynamic NFTs are a type of NFT that changes over time, creating a unique and evolving experience for the owner. Dynamic NFTs can use external data sources to update artwork, such as social media feeds or actual events.

For example, the Immortal Pump is a dynamic NFT that changes in response to the ups and downs of the cryptocurrency market. Artwork becomes more complex and detailed as the value of cryptocurrencies rises, while it becomes clearer and more abstract as their value decreases. Because they allow viewers to follow changes made to artwork and see it evolve over time, dynamic NFTs can provide a new degree of engagement and interaction for collectors.

Dynamic NFTs can be monetized via auction, where collectors can bid on them, and the highest bidder gets ownership. Highly sought-after dynamic NFTs, due to their unique features and evolving nature, can command high prices at auction. Additionally, using subscription-based systems, artists can offer exclusive dynamic NFTs to collectors for a fee. These NFTs may vary frequently, providing subscribers with a steady stream of new content.

proceeds

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 make a profit from their work even after the initial sale. For example, digital artist Buck sold an NFT called “The Fungible” for $502k, and the NFT was automatically triggered to pay the artist 10% royalties on each subsequent sale. Since then, the NFT has been resold several times, and the artist has earned over $2 million in royalties.

gamification

This includes creating interactive non-fungible tokens that users can play with or use in games. For example, Axie Infinity is a game that uses NFTs as game assets, which players can buy, sell, and trade to build their game characters.

Additionally, NFTs can be awarded as rewards for achieving certain goals or activities in a game or app. For example, a fitness app may offer non-fungible codes to users who reach their daily exercise goals.

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Physical asset links

Physical asset links with NFTs involve linking a physical object to a unique digital asset, usually using a unique identifier or token. This could provide a way to verify the authenticity and ownership of a physical object, while also allowing for the transfer of ownership and value of the associated digital asset.

However, NFTs can be used to represent ownership of a physical asset, such as a piece of real estate or a car. For example, a company called CarForce is developing NFTs that reflect ownership of high-end cars, where the NFT acts as a digital car key allowing the owner to enter and operate the actual vehicle.

Related: What is tokenized real estate? A beginner’s guide to digital real estate ownership