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How to Add Utility to an NFT?

How to add utility to an NFT cover

There are several factors that determine the success of an NFT project. In the long term, though, a few factors make an NFT valuable in the market. NFT utility is a key to NFT investors and collectors which convince them to invest in a project and become a member of the community.

Adding utility to an NFT project can create real-world value for the project and take it to new heights. In fact, NFT utility allows an NFT to transform from a simple digital token to a highly desirable and valuable asset.

If you are also thinking about adding utility to your NFTs, here is all you need to know. In this article, we provide a complete guide about NFT utility, its types, NFT utility apps, and examples of successful utility NFTs.

What is NFT Utility?

What is NFT utility

In simple terms, utility refers to the additional benefits or services that add to the value of an asset. Utility NFTs refer to digital tokens that have a practical application and, therefore, higher values. Such utilities can be the key to the real-world use case of an NFT to unlock its full potential.

NFT utility can be used to set apart a basic NFT from the truly valuable and desirable ones. Holders who own a utility NFT can receive additional benefits and services in addition to owning a digital asset or collectible. NFT creators, on the other hand, can add utility to an NFT to offer a unique, outstanding, and valuable asset to the market and easily attract more investors.

NFT utilities can provide several opportunities to a holder, including access to a virtual world or game, permission to attend exclusive events, access to collection drops and early minting, etc. Utility NFTs are also known as NFT 2.0, meaning that they are developed based on what the users need.

How to Create a Utility NFT?

How to create a utility NFT

To create a utility NFT, it is important to determine the unique digital asset you want to turn into an NFT. The asset could be an original painting, picture, music, video, or any other collectible. Remember that scarce digital assets make your NFT more valuable. Also, make sure that you own all the intellectual property rights to the assets before turning them into NFTs. In the following, we discuss the basics of creating a utility NFT.

Type of utility you want to add to your NFT

NFT creators can add various types of utilities to their NFTs, such as access to exclusive events, membership in a community, discounts on tokens, voting rights in a DAO, access to physical goods, etc. Creators should know their target audience and add relevant values that motivate investors or collectors to buy the NFTs.

Make your NFTs redeemable

Redeemable NFTs, whether they are physical or digital, are always more valuable. For example, an artist can provide an original painting that can be redeemed to an NFT buyer. The key to the success of redeemable NFTs is that people prefer to have access to original and rare assets, which easily add utility to an NFT and make it more valuable.

Provide a service or merchandise

Providing a service or merchandise to your NFT holders is another way to add utility to your NFTs. All you need to do is to analyze the needs of your potential customers and provide them with services or merchandise that can help them make a community. For example, if you aim to create utility NFT sports cards, you could give your NFT holders relevant items such as caps, clothes, hand-drawn paintings, stickers, etc. Besides, you may offer free sessions of personal training to those who buy your NFTs.

Notice that the services or items you provide to your NFT holders need to be valuable to them and make sense of your brand.

Provide exclusive access to events and meetings

Some of the most successful utility NFTs, such as VeeFriend and BAYC, offer their NFT holders exclusive access to unique events or meetings. It is a great way to create a sense of community among your NFT holders and cause them extremely dedicate their effort to your NFT project.

You may choose IRL events, especially in the metaverse, to help with travel costs and time restrictions. These events can include community polls or voting on important issues regarding the NFT collection.

Airdrop NFTs to your NFT holders

Airdrop NFTs to your NFT holders

The main goal of adding utility to your NFT is to make your tokens more valuable to potential customers. Many NFT creators offer their holders the chance to get additional free tokens. However, these free tokens must be valuable too, and provide value to NFT holders.

For an airdrop to be successful and valuable, your brand needs to be well-established and known. You may also collaborate with someone who is already known in the NFT market to connect your NFT community to others and add more value to your NFTs.

Whitelist opportunities

Last but not least, giving out whitelist opportunities to your NFT holders can help you add value to your NFTs. Your NFT holders can offer first bids to NFT drops or other exclusive cases to buy your new products or mint your latest NFTs.

Several well-known figures in the NFT market have provided their NFT holders with whitelist opportunities to mint their second NFT collections. It not only makes a sense of community among NFT holders but also makes the projects more successful.

Perks of Utility NFTs

Perks of utility NFTs

Utility NFTs provide several benefits not only to their owners but also to their creators. The main advantage to regular NFTs is that they belong to one person, and their owners can sell them in the NFT market anytime and for any price. However, utility NFTs offer much more benefits. Here are the most common perks of utility NFTs:

New revenue

Utility NFTs provide their owners with a passive income source. These tokens reward their holders with music royalties, cryptocurrencies, and new NFTs, such as tickets to concerts or events, which can be traded in the market.

Digitally trackable ownership

Provenance, or the origin and ownership history of a token, of an NFT can be digitally tracked thanks to blockchain technology. All transactions regarding an NFT are publicly available on its immutable ledger. Provenance is essential in determining the legitimacy of an asset.

Exclusive content

Utility NFTs offer several advantages to their holders, including access to exclusive content and live experience. The owners of utility NFTs usually are the first to know about exclusive events and drops relative to their tokens. They also enjoy the special live experiences on Web 3.

More appealing NFTs

Utility services give NFT providers a great chance to differentiate their tokens from others. Utility NFT providers do their best to add unique and exclusive benefits to their digital assets and make them more appealing to potential buyers, which increases the overall value of the tokens. NFT providers, thus, can stand out in the NFT market and build their own loyal community.

Top NFT Utility Examples

Below are examples of top NFT projects that have added utility to their NFTs.


The VeeFriend NFT project was developed by popular entrepreneur Gary Vaynerchuk. The NFT project provides a utility to owners which allows them to participate in the VeeCon conference.

VeeFriend project allows its holders to create their own NFT avatars called Vees and interact with other users in the virtual world. They can also use their Vees to participate in various virtual experiences, including playing games, attending virtual events and conferences, and earning cryptocurrencies.

Bored Ape Yacht Club (BAYC)

Bored Ape Yacht Club (BAYC)

Bored Ape Yacht Club is a collection of 10,000 utility NFTs that allow their holders to participate in exclusive events such as ApeFest. ApeFest is an annual event organized by BAYC. BAYC holders come together, share the news about their collection and take part in various activities such as virtual concerts, auctions, and games.

In addition to getting access to these exclusive events, Bored Ape Yacht Club NFT holders are provided with other benefits, such as early access to new features or drops and new mint opportunities.

NFT Academy

NFT Academy is an educational platform that provides NFT courses and resources for enthusiasts. Their utility NFTs give token holders access to exclusive content and resources in the NFT world, including live workshops, early access to new courses, and peer-to-peer monitoring.

These utility NFTs help to create an exclusive community and value-add for holders. These courses provide NFT holders with valuable knowledge and resources that can improve their functionality in the NFT space.

CloneX & CryptoKicks

CloneX & CryptoKicks

RTFKT and Nike have cooperated to create utility NFTs as CloneX and CryptoKicks projects. These utility projects provide NFT holders exclusive access to minting physical items, allowlist, and free upcoming mints relative to the NFT project. In fact, it is easily understood that they have made utility an integral part of their brand strategy.

RTFKT and Nike have taken NFT utilities to the next level with CryptoKicks by exploring the connection between physical and digital products through exclusive footwear that is only available to NFT holders.

NFT utility apps

NFT utility apps

NFT utility can create wider engagement and loyalty among an NFT community. NFT utility apps can help NFT developers achieve their goals by adding utility to NFTs. Here is a short list of the most practical NFT utility apps to add utility to NFT projects.

Unlock with NFT

Unlock with NFT

Unlock with NFT is a foundational app that allows NFT owners to create utility and value, lock exclusive content and unlock it to people who can securely verify their ownership of an NFT.

NFT Locked Images

The NFT Locked Images app allows NFT creator to lock up their images behind a virtual gate. It makes the images accessible only to NFT holders. This app is especially useful for artists or photographers who own high-quality images and want to keep their work behind a locked door. Most of the highly sought-after locked images motivate followers and non-holders of an NFT collection to purchase the NFT to gain access to the image.

This utility app will automatically check if a follower is a holder of an NFT once they connect their crypto wallet, and this will allow them to show proof of NFT ownership. If they own the NFT, they get access to the locked file.

The NFT Gallery app lets NFT owners show off their collection of NFTs. It also provides an excellent space for NFT collectors to publicly and safely display artwork and digital assets.

NFT Message Wall

NFT Message Wall is a forum that is only accessible through a verifiable NFT token. Using this app, creators are able to limit membership to a message wall and allow the users who have purchased an NFT token from a specific collection to access the message. This app is able to verify this ownership seamlessly using Web 3 features.

NFT Giveaway

NFT Giveaway is another app that assists NFT owners in creating utility for their NFTs. Followers who own a verified NFT token from a given collection are able to access the prizes. This app provides a great way to encourage followers to buy specific NFT tokens and offer additional value to other followers.

NFT Secret Message

NFT Secret Message

The NFT Secret Message app unlocks a secret message with a verified NFT token. The limitation to the possibilities for messages you can lock behind this NFT gate is the sky. Choices are enormous, ranging from a special discount code for a course, your merchandise, a link to a new song/video sneak preview, or even a link to a poll specifically for verified NFT owners.


  1. Are utility NFTs more valuable?

    Utility NFTs give buyers a unique and exclusive experience associated with the tokens. This offers holders additional value of the NFT and makes it more appealing to potential buyers.

  2. Are there any drawbacks to adding utilities to NFTs?

    The prices of NFTs are very volatile, and it is even more difficult to set a price for a utility NFT due to its potential in the real world. In addition to speculative prices, there is always a possibility of fraud in the market.

About Motahareh

Motahareh Khalvandy is an applied linguist currently writing for NFTNEWSPRO. She is fascinated by creativity and innovation of NFTs and web3. In her free time, she enjoys translating books and articles.

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