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9 clever ideas for adding utility to your NFT

I published an article that listed good utility NFTs to invest in, and it got a lot of buzz. But that article was primarily aimed at investors and not creators.

From that post, I received tons of emails asking that I show my readers how to create utility NFTs or add a utility to their NFTs. That is what I’m doing in this article.

Here, I will show you creative ideas for creating NFTs and ways to bind real-world use cases to your NFTs. If you are not a creator, you may want to read my previous post about the 15 best utility NFTs to invest in.

What is a utility-based NFT project?

NFTs with utility are NFTs that are created and sold based on their practical applications and opportunities in the real world. This is why they are popularly called NFTs with a real-world use case.

A key property of a utility NFT is that its worth is driven by the value of the physical opportunities, entitlements, or application of ownership of the token in the buyer’s life.

Investors have massive trust in the creators of utility NFTs because their projects are apparently not created for the sole purpose of cashing out but to give access to a utility.

While some unfair players drop NFT projects and make bogus claims about its real-world use cases, utility NFTs are still the least risky NFTs to invest in.

How do you add a utility to your NFT project?

Most NFTs are absolutely worthless and only exist because the creator wanted to cash out of the NFT crase. You shouldn’t be such creator. There is plenty of money to make in NFTs if you do it right and avoid shortcuts.

The surefire way to ensure that your NFTs sell and do not lose value is to add a utility to your NFTs. Not only would the utility be an incentive to purchase your collection, it also means that your NFTs would benefit the lives your the holders.

Below, I will list and explain some ideas for making utility NFTs.

1. Make a membership NFT that grants VIP access

The most common way to add utility to your NFTs is to grant holders of your tokens VIP access to special events. The most straightforward application of this technique would be if there is already a well-known club or event. With this, it’s pretty easy to introduce your NFTs as the new way to secure VIP access.

If you have no such existing well-known club or event, you can still implement this method. First, you have to create the event and hype it up in your road map. If your club or event is attractive enough, it will bring investors.

To nail this technique, ensure that your event or club is as exclusive as possible, and that the VIP access have quality benefits associated with it. Many creators of existing NFTs have implemented this method successfully, the most notable of which is the Bored Ape Yacht Club NFTs.

READ ALSO: Top 10 Blue Chip NFTs and How to Buy โ€˜Cheapโ€™ (June 2022)

2. Make your NFTs usable in the metaverse

I describe the metaverse as a digital world. The metaverse is limitless and can be experienced as virtual reality. Similar to the real-world universe, the people in the metaverse need products and services to get by, integrate fully into the community, or simply flex on others in the metaverse.

You can’t do without NFTs if you’re active in the metaverse because they represent assets your own. Therefore, the first and perhaps most straightforward way to make a utility of your NFTs is to make them usable in the metaverse.

Believe it or not, people are making millions of dollars trading items and commodities in the metaverse. For instance, the virtual shoe company, RTFKT sold over 600 pairs of sneakers for over $3.1 million in the metaverse before getting acquired by Nike.

3. Link your NFTs to an asset or ownership rights

The most vital property of utility NFTs is that they have real-world use cases. And a direct way to achieve this is to give your NFTs a place in the lives of their holders.

Taking a cue from the stock market, you know that some investors are rewarded with dividends based on the percentage of their held shares. Similarly, a way to link your NFTs to the real world is to offer the holders a percentage of the dividends from your collection over a given time.

Digital creators can even attach your NFTs to your most valuable content and allow investors to purchase your content and get full rights to it by buying its NFT. The ownership rights are transferred with each sale of the token, and the current holder at any time is the person with the full ownership rights to your piece of content.

If you wish to go with this method of adding utility to your NFTs, you can brainstorm real-world products or services and create NFTs that grant holders access to them.

4. Give your NFTs real-world uses

A clever way to make a utility NFT is to blur the line between digital and physical benefits to holders of your tokens. NFTs have driven change in many fields of life, with the most obvious being the area of verifications.

The non-fungible property of NFTs make them perfect for ownership verification. So, you can get creative here. Are you selling tickets for a show? You can sell NFTs instead.

Do you want to revolutionize the real estate industry? Then jump into real estate NFTs.

Are you a fashion designer? You can sell NFTs of your original designs and allow holders print out beautiful garments with NFT 3D printing. When it comes to giving your NFT real-world uses, think outside the box and figure out how you can contribute to this new-ish technology.

5. Make your NFT redeemable

Similar to the previous method of giving your NFTs real-world uses, an idea to make an NFT with utility is to create NFTs that entitle the holders to physical or digital products or services.

For example, instead of merely selling digital artworks as NFTs, you may also produce the physical artwork and ship it to the buyer on purchase. Another method is to award a prize to the person holding the most NFT tokens in your collection.

You can be creative in making utility NFTs using this technique. All you need to do is research or come up with a physical or digital product or service that people of a specific community would need and find a way to attach it as an entitlement to holders of your NFT tokens.

6. Make NFTs of your music

Despite images being the most dominant forms of NFTs, music NFTs are among the most straightforward utilities. Some people have a solid argument that music NFTs are not utilities. But they can be, and I’ll show you how.

In the past, musicians relied on big record labels to get their works to the ears of fans. However, these days, that framework is being taken down, thanks to Tik Tok, Instagram, YouTube, and NFT music marketplaces.

Now, an independent musician can simply release a catchy tune and it blows up on social media without needing a third-party or record label. With NFTs, you can drop entire albums as NFTs and give buyers rights to your music. In this way, both you the musician and your listeners will benefit from the project.

Another idea is to take a cue from how stadium season tickets work. But in this case, the music NFT can serve as a concert ticket or full ownership. Once again, you must be creative with this strategy.

I wrote a tutorial about music NFTs. Read the linked article to get started with this method of adding a utility to your NFTs.

Bonus ideas for adding utility to your NFTs

  • Make artworks or collections of your NFTs
  • Share NFTs revenues with holders
  • Secure your platform using NFTs


NFTs have come to stay, despite whatever turbulence you notice on the price charts. The projects mostly in the bear market are NFTs that have no real world use cases. To create an NFT project that stands the test of time, your NFTs should be applicable in the real world.

Before creating a collection, ask yourself these questions: how would ownership of this token impact a holder’s life?

If you cannot find a justifiable answer to the above question, you’re better off not starting the project. Alternatively, if you have NFTs already, this article has suggested some clever ways to add a utility to your NFTs.

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