What are Utility NFTs?

Introduction

NFTs were first introduced back in 2015 with Etheria, and started making some noise in 2017 with the introduction of Cryptopunks and Cryptokitties. They then remained a niche part of crypto for years until 2021 when NFTs became so popular that they broke into the mainstream consciousness. In fact, NFT was the word of the year in 2021. Over $40 billion was spent on NFTs and over 28 million wallets traded NFTs in 2021 alone. Although most people pass off NFTs as useless JPEGs, many projects are working on adding utility to their NFTs and delivering extra value, and RugZombie is no stranger to that.

The Utility of RugZombie’s Oblivionaut NFT

RugZombie’s Oblivionaut Mythic NFT is packed with utility. The collection is launching soon on the Oblivion Marketplace on Nervos Network’s L2 blockchain, Godwoken Mainnet. There are a total of 550 NFTs in the collection and they will cost $65 a piece to mint.

Holders of the Oblivionaut NFT will benefit from features such as:

  • 50% fee discount on the standard 1% for all secondary trades on Oblivion Marketplace
  • Whitelist Spots for future releases
  • In-Game Asset for the NFT Card Game being developed by Dead Games.
  • More features to be released over time.

There are also more NFTs to check out at oblivion.art!

Gaming NFTs

One of the most promising use cases for NFTs is in gaming. Many of the most popular Web2 games currently sell skins and playable items for real money. However, since these items are controlled by a centralized entity, the players do not truly own them. As mentioned before, Cryptokitties was one of the first NFT projects to rise to provenance and they were the first example of a gaming NFT. The game allowed users to buy, sell and breed NFTs of kitties, and it became so popular that at one point it reached a reported 25% of the total activity on the Ethereum blockchain.

Cryptokitties paved the way for many more blockchain games to come out in the future. Most notably, Axie Infinity became extremely popular with its “Play-to-Earn” (P2E) model in which players could use their NFTs to complete in-game quests to earn tokens. The game became so successful that some players in Southeast Asia made more money playing the game than in their regular jobs. Axie also introduced the model of renting NFTs, which allowed people to make passive income on their NFTs while providing a low-cost entry to the game.

Membership NFTs

NFTs can also be used to prove membership to a certain group or club. Most commonly, NFTs grant access to private Discord chats or exclusive events. Other NFTs are used as loyalty rewards or to give discounts to restaurants or merchandise.

Active Investment NFTs

Another way projects have brought utility to their NFTs is through token generation. Many projects have created a new token and airdropped a portion to its holders. For example, the APE coin was airdropped to holders of the various Bored Ape Yacht Club collections. Other projects, such as Anonymice, allowed holders to stake their NFTs to earn yield in the form of the new token (CHEETH in this example).

RugZombie offers NFTs as staking rewards in the Tombs and Graves.

FAQs

What does NFT stand for?

NFT stands for Non Fungible Token. NFTs are assets on the blockchain that have unique metadata that does not allow it to be replicated.

How many NFTs are in a collection?

There can be any number of NFTs in a collection. A common theme within the space is for collections to have 10,000 NFTs, although you can even have a collection that is a 1/1.

Can anyone make an NFT?

Yes! Anyone can make an NFT collection and now there are even solutions for individuals with no coding experience to make a collection. Our partner, Oblivion, allows anyone to create an NFT through their NFT Starport feature.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store