Nonfungible tokens (NFTs) offer a new way to sell and distribute digital art, and they have the potential to unlock new revenue streams for artists in the digital age. Here are five ways to monetize your digital art with NFTs.
This involves splitting the ownership of an artwork into smaller parts and selling them as tokens, allowing multiple investors to own a stake in the artwork. For example, an artist can create 100 tokens for a piece of art and sell them to 100 different buyers, each of whom owns a share of the artwork.
Related: How do you assess the value of an NFT?
Dynamic NFTs are a type of NFT that changes over time, creating a unique and evolving experience for the owner. Dynamic NFTs can use external data sources to update the artwork, such as social media feeds or actual occurrences.
For example, “The Eternal Pump” is a dynamic NFT that changes in response to the rise and fall of the cryptocurrency market. The artwork gets more complex and elaborate as the value of cryptocurrencies rises, while it gets more straightforward and abstract as their value falls. Because they allow viewers to follow changes to the artwork and see it develop over time, dynamic NFTs can bring a new degree of involvement and engagement to collectors.
Feeling incredibly fortunate to have been one of the lucky few to pick up one of @dmitricherniak‘s works, The Eternal Pump, on the @artblocks_io Artist Playground today. Another stunning body of work by a fantastic artist. pic.twitter.com/NRywp1kQaC
— pixelpete (@pixelpete) February 22, 2021
Dynamic NFTs can be monetized via auction, where collectors can bid on them, and the highest bidder takes ownership. Dynamic NFTs that are highly sought after, due to their unique features and evolving nature, can command high prices at auction. Additionally, using subscription-based systems, artists can offer collectors exclusive dynamic NFTs for a fee. These NFTs might vary frequently, offering subscribers a steady stream of fresh content.
NFTs can be programmed to automatically pay the artist a percentage of the sale each time the NFT is resold on a secondary market. This allows artists to continue to profit from their work even after the initial sale. For example, the digital artist Pak sold an NFT called “The Fungible” for $502,000, and the NFT was automated to pay the artist a 10% royalty on every subsequent sale. Since then, the NFT has been resold multiple times, and the…
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