Open-mindedly envisioning the infinite use cases of NFTs in the future

Written by: Chris Cantino, Partner at Color Capital
Compiled by: Perry Wang, Chain News

1/ If we were to explain NFTs using an "elevator pitch," we would have heard about these benefits of NFTs:

• Infinite royalties for artists;
• Community ownership of NFTs;
• 24/7 trading markets;
• Token-gated access;

All of this sounds great, but the next step for NFTs is to truly think outside the box, let me elaborate.

2/ The Mass Adoption of NFTs in Retail

Retailers like 7-11 and Gamestop will use NFTs to incentivize real-world transactions, leveraging creators to drive traffic to their stores.

For example, a Yeezy NFT that can only be unlocked by purchasing from a Gap retail store, or an NFT that unlocks exclusive features for Tesla cars.

3/ The Mass Adoption of NFTs in Services

In the future, NFTs will be used to unlock access to services and enthusiast communities. NFT holders will be able to interact with influential chefs, photographers, doctors, and niche hobby communities through Q&A sessions and tutorials, and this model will thrive.

This will also extend to real-world services such as transportation, hotels, and massages.

4/ Social Movements

As millions enter the crypto community, communities supporting political causes through NFT ownership will gain significant attention.

One can imagine a future where an NFT community is immersed in the climate change social movement, with proceeds from related NFT sales used for political lobbying, coordinated by community DAOs.

5/ Social Feeds Market

In the future, social feeds based on NFT collections will emerge, introducing strategies and research from top collectors, as well as platforms for interaction with collectors.

These social feeds will evolve into social commerce markets, featuring comments, analyses, and more.

6/ Multiplayer Games

NFTs will create hive activities by incentivizing group behavior. For example, in MMORPGs, once the number of users betting reaches 10,000, a new level will be unlocked. Rare NFTs will be airdropped to users who have signed contracts and pooled their underlying NFT funds.

At that time, collecting will become a team sport.

7/ NFT Lending Platforms

As NFTs can unlock temporary access—like attending events—a short-term lending market is emerging. For instance, I personally lend $FWB to friends, allowing them to attend related events.
Think of it as a marketplace: StubHub, but the traded items are NFTs.

8/ NFT Indexes

As market indicators show a trend of collectors investing in NFTs, investments that indirectly gain exposure to hundreds of NFT projects through indexes will surge.

Imagine a future world with a "Christie's NFT ETF." They would have the power to provide liquidity to assets—investors would go all in.

Such indexes will also expand support for the NFT community.

9/ Collateralization

So far, crypto lending projects have opposed NFT holders using NFTs as collateral for loans.

But as institutional funds flow in the future, NFT assets will become better stores of value, and the collateral market will provide flexibility and liquidity for all NFT holders, rather than being exclusive to whales.

10/ Fragmentation

In the future, NFTs can be split into several equity shares, allowing more people to invest in blue-chip NFT assets, such as owning a fraction of a Cryptopunk.

What will the result be? As more funds enter the NFT market, the liquidity of NFT holders will increase, leading to greater appreciation of blue-chip NFT assets.

11/ DeFi

As NFT enthusiasts find it increasingly easy to stake and yield farm NFT assets, the returns from NFTs will not be limited to APY.

NFTs will become underlying assets in DeFi, including providing community access. Such projects will not be simple savings games—NFTs will evolve into investments in communities.

12/ Loyalty Exchange

As brands and creators seek to enhance loyalty, fans will receive NFT rewards for their activities in the community. Did a member contribute content? They will receive an NFT. Participated in a survey? They will receive an NFT. Made a purchase? They will receive an NFT.

Tokens are more liquid and prestigious compared to traditional coupons.

13/ R&D

Brands and creators will gain insights into product development by offering NFT rewards: pain points, marketing propositions, roadmaps, etc.

NFTs can serve as a stepping stone to early product releases and sharing potential profits. Brands will track and maintain these crucial relationships.

14/ Content Contribution

In the future, users can submit short videos, comments, and tutorials to earn NFT rewards. This is a cold-start flywheel in the marketing domain.

Corresponding rights can be encoded in smart contracts, and the advertising effect of contributors' content can bring future profits to content contributors.

15/ Customer Group NFTs

Imagine if you received an NFT for being one of the first customers of Air Jordan sneakers; how valuable would that NFT be today? What special channels and products would Nike use to reward you years later?

Group NFTs serve to prove that you took specific actions at a specific time.

16/ Customer Education and Support

Users who demonstrate extraordinary knowledge of brand products can earn NFT rewards, allowing companies to attract newcomers to the community or provide customer support.

This may be more impactful than having brand employees do the same.

17/ Bounties

Creators and brands will post unique tasks within the community, rewarding those who complete them with certain NFTs. These tasks can cover anything from completing surveys to recommending members to the community and attending events.

Bounties may be highly competitive or completely open-ended.

18/ Leaderboards

The NFT community gamifies participation in activities by ranking the performance and engagement of leading holders.

Top contributors will receive rewards and corresponding influence weight, incentivizing the community to actively hold NFTs and participate in activities to ensure better returns on their investments.

19/ The development of NFTs is just beginning, and the future is bright. NFT technology is making significant progress every day in the widespread adoption and rewards of community participation. The market prospects are extremely promising.

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