The recent crash has had a significant impact on all aspects of cryptocurrency, including the world of NFTs. Most NFT floor prices have fallen by almost 80% during the last three months. Many investors now believe that the NFT boom was a passing fad. Even worse, according to the
Nonetheless, in the midst of the chaos, artists are searching for innovative ways to use non-fungible tokens. Let's look at three examples: revenue rights, digital passes and VIP membership, and NFT-based charity efforts.
Sharing Profits with Backers
By buying an artist's NFT, investors can also obtain rights to the revenue generated from streaming. The tokenization of a musician’s profits makes this idea a reality. While being paid in advance to cover production and marketing costs, artists can still keep ownership of their work. Users, in turn, are contributing money to performers in an effort to share in their success.
A good illustration is the Unity campaign, which began in May and raised $25,000 in a matter of days, exemplifies how to put this strategy into action. Alan Walker's song is likely to reach the streaming goal years earlier than expected, and it has led to the start of a second, even bigger campaign for DJ's Origins EP. This crowdfunding model could include "fan missions." The idea is that users will be rewarded and given privileges for completing tasks.
https://twitter.com/IAmAlanWalker/status/1529095200647393283
As the artist's career progresses, the value of the rights increases. As a result, investors have a reason to hold their shares for a longer period of time, lowering the risk of speculation.
Exclusive Membership and Digital Tickets
Another trend that is gaining traction is tokenized tickets and membership cards with special benefits for users. The collaboration between FTX and Coachella, which led to the launch of the Coachella Collectibles series, is a good example of it. The Swedish Way Out West (WOW) Festival is also working on an NFT collection that will feature photos and clips taken by festival-goers.
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Many bands have discovered ways to reward their fans with non-fungible tokens as well. One of the first to adopt NFT was Avenged Sevenfold. The group initiated the Deathbats Club collection in 2021. Additionally, the heavy metal band gave owners IP rights to their Deathbat and continues to provide members with other unique opportunities, such as incorporating three of their Deathbats into Iron Maiden's "Legacy of the Beast" mobile game.
Another great illustration is deadmau5's HEAD5 Collection. For those who already had official tokens, the famous Canadian DJ offered the chance to begin minting additional fan club NFTs ahead of schedule. It demonstrates how artists could use NFTs to provide VIP status to their fans.
Simply put, there is little risk of speculation because people who buy tokenized tickets to exclusive events intend to use them rather than resell them.
Donations to Charity
After all, non-fungible tokens can solve global problems. By donating the proceeds from NFT sales to charitable organizations, performers are helping the world. Grimes, a singer, and producer, did just that with her WarNymph Collection. The initial sale brought more than $6 million in revenue, and a portion of that money was given to Carbon180, a non-governmental initiative aimed at reducing carbon dioxide emissions and combating global warming. Big companies like Coca-Cola and UNICEF have helped charities in similar ways.
This is an important step because people who donate to green causes through NFTs are less likely to gamble because it is harmful to the environment.
A Glimpse into the Future
Public views of NFT are changing. Projects that improve our lives will gradually restore NFT's reputation. These three cases show that the industry is getting more mature.