What is an NFT Utility?
Based on user demand, utility NFTs or NFTs 2.0 are the future and provide a broader range of practical NFT applications.
For example, holding a utility NFT can provide access to exclusive experiences, early access to products, airdrops, exclusive invites to events with top celebrities/athletes, and much more.
Types of NFT Utility.
Ways to generate passive income from NFTs.
1-Staking
When you stake an NFT, the staking platform determines its value based on rarity and calculates an annual percentage yield (APY). The higher the APY, the rarer your NFT.
The worth of an NFT is also determined by its ability to generate a consistent revenue stream, such as royalties.
MOBOX and Zookeeper are two great examples. More projects are also developing NFT staking ability on their platforms, such as Binance Fan Token
2- NFT Royalties
Every time an asset is sold, the NFT Royalty is offered to the original creator. In the event that their creation and innovation are valued, recursive selling will bring royalty fees to the creator.
what is NFT Royalty?
NFT royalty payments are perpetual and are executed automatically by smart contracts. Most marketplaces allow you to select your royalty percentage. A standard royalty rate of 5-10% is considered.
