NFTs construct virtual economies to stay relevant in 2022
As NFT projects prepare to embark into the Metaverse, it seems they are pivoting from their static imagery to integrating mechanics that provide utility.
Notably, Bored Ape Yacht Club has amassed over $1 billion in total volume and announced a mobile play-and-earn game, while fellow primate projects, CyberKongz and SmolBrains continue to announce and integrate new gamification features to their collections.
Investors seem to not only be searching for projects with strong communities and utility, but it appears technical capabilities rank high on the list too. This notion was made evident after Cool Cats’ Cool Pets collection experienced back-to-back hiccups with its launch, and has since been in a downtrend as holders await their reveal.
Perhaps NFT collections are maturing and focusing on delivering what is promised on their long-term roadmaps. It’s also possible that they are searching for ways to sustain value and relevance with their respective communities in 2022.
Projects aim to lock in utility
Word on the street is, there is a new term to be aware of, “play-and-kollect,” a phrase coined by CyberKongz. CyberKongz is one of, if not, the first collection to integrate a token generating mechanism to its NFTs and a breeding mechanism. Its governance token, BANANA, was introduced as a way for users to personalize their NFT and breed BebeKongz.
In a similar fashion, Franky Nines’ SupDucks PFP collection generates VOLT, the utility token that collectors use to purchase ingredients to spawn a MegaToad. By integrating a token mechanism and model, projects are also gamifying the experience of stacking and holding.
— patrickjamesNFT.pcc.eth (@patrickjamesNFT) December 30, 2021
To incentivize BebeKongz holders and give them utility, CyberKongz announced that each genesis or BebeKong could be redeemed for a CyberKongz VX. CyberKongz VX are full-bodied, 3D pixelated versions of the collection.
Since its release back in Aug. 15, 2021, CyberKongz VXs daily average price has increased by nearly 193%, sitting at a thin 2.4 Ether ($6,430.22) floor with a 7-day average of 3.5 Ether ($9,377.41.) CyberKongz VX have recently been given utility as they venture into CyberKongz in-game Jungle Adventure.
The Jungle Adventure will enable holders to put their CyberKongz VX to good use to collect Kongnium Ore’s (ERC-1155 token) that can be redeemed for exclusive NFTS and BANANA prize pools.
The overarching theme with play-and-collect in the CyberKongz ecosystem, is that each piece in the collection is designed to play a key role in providing utility. No longer are pieces just aesthetically pleasing, they also have serviceability. CyberKongz is not the only collection honing in on gamification to give its NFTs utility; Cool Cats’ budding collection Cool Pets will be able to earn an in-game token GOLD. To claim the GOLD, users must have MILK, which Cool Cats will soon generate daily.
Beyond gamification, other projects have discovered that a community-collective is just as valuable as utility.
Built for the community, by the community
Built on the Treasure.lol universe and created by Treasure DAO, SmolBrains is the epitome of a grassroot project. The project is an NFT game developed on the Arbitrum network, whose primary PFP dynamically changes.
The SmolBrain starts out as a happy-go-lucky monkey that when staked, begins to increase its intelligence and brain size. Every IQ milestone unlocks a new feature on a user’s land in Smolville which incentivizes users to stake their NFT.
Unreal, my @SmolBrainsNFT just keep gaining IQ.
I joined Oct 15th the first day the discord existed. Minted free Smolbrains and land and the rest is history.
I need to know when Smol Party on Tropix Smol Brain Land! pic.twitter.com/4FYRPktnYN
— TropixMusic (@TropixOfficial) December 30, 2021
Smolbrains community figuratively and literally went to the moon, with its current floor price is 2,525 MAGIC ($10,065) and there are currently less than 180 listed out of 13,742, suggesting there are many collectors, gamers and DeFi pundits who believe in the Smolville ecosystem and its potential rewards.
BEEN PUTTING HEADS TOGETHER WITH SOME NFT LENDING AND FRACTIONALIZATION DEVS
GOOD NEWS INBOUND: YOU WILL BE HODL YOUR SMOL TIGHT LIKE THE PRODUCTIVE ASSET WE ALL KNOW IT IS#IFKYK
— Smol Brains (@SmolBrainsNFT) January 7, 2022
Pets seem to be in season as SmolPets have also arrived on the scene for every SmolBrain and SmolBody holder. While DeadFellaz, just launched its DeadFrenz collection, slated to have future utility within the horde ecosystem.
Strong communities are commonly stated as a reason for why certain collections are popular and deemed a success. However, strong communities are also seeking ways to ensure that they get some sort of return for their initial capital investment and rightfully so.
For some NFT investors, buying the art work is more than just a capital investment. Community members invest their time and talent on project initiatives and in turn, development teams are strategizing on capturing and sustaining the attention of its members to maintain and drive up the project’s value.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.