Five Methods for Monetize Your Digital Art Using NFTs

The digital age has brought many opportunities to make money, but Web 3.0 takes it up a level. Thanks to NFTs, artists now have the chance to distribute their digital art to anyone who wants it, regardless of geographical location, therefore securing a wider source of income. Below are five methods for monetizing your art, thanks to NFT technology.

Fractional/distributed ownership

This is a method in which the ownership of an artwork is divided into smaller parts and sold in the form of tokens. This allows a larger number of investors to own a share of the artwork created. For example, an artist may create 200 tokens for their artwork, then sell these tokens to 200 different buyers who, through the purchase, own a share of the artwork.

Dynamic NFTs

These NFTs offer a unique experience to their owners by changing and evolving over time with the help of updates. Dynamic NFTs can use external data sources for updates, such as various social media feeds or real-life events.

An example is the dynamic NFT "The Eternal Pump," which changes depending on the value of the cryptocurrency market. This NFT looks more complex and sophisticated when the cryptocurrency market is on the rise, but when the market falls, it is more straightforward and abstract. Since this kind of NFT allows holders to watch the artwork change and evolve over time, these dynamic NFTs can bring a new level of engagement and involvement to users.

Profiting from dynamic NFTs is possible through an auction in which the highest bidder becomes the owner of the NFT. These NFTs are in high demand due to their uniqueness and often fetch high prices at auction. In addition, creators can offer their creations exclusively to collectors, for a fee, using a subscription-based system. These NFTs can change frequently, offering subscribers a constant stream of new content.

Royalties

NFTs can be set up to automatically pay a percentage of sales to creators if the NFT is resold on the secondary market. This gives creators "passive income" because they can profit even if their work has already been sold. An artist nicknamed Pak created a collection of NFTs called "The Fungible," which he sold for 502 000 USD, with the caveat that the NFTs had a programmed royalty of 10% on each resale, which the artist received whenever an NFT was resold. These NFTs have since been sold several times and the artist has made over 2 million USD in royalties.  

Gamification

This method involves creating interactive NFT tokens with which users can play various games. An example is the game Axie Infinity, which uses these interactive NFTs as in-game assets that players can buy, sell, or use to create their own characters.

Among other things, these NFTs can be used as rewards for completing various tasks or reaching milestones in the game or app. For example, fitness apps can use NFT tokens to reward their users for completing certain exercises or achieving set goals.  

Physical connection to assets

This involves linking a physical object to a unique NFT, usually through a unique code. This will provide the owner with a way to authenticate and verify ownership of the physical object, while allowing the transfer of ownership and value of the associated digital asset.

These NFTs can therefore be used to represent ownership of a physical asset such as a car or a piece of real estate. For example, CarForce is developing NFTs that are linked to a particular luxury automobile, also serving as a digital key that allows the owner to enter and drive the car.

Source: cointelegraph.com