Our philosophy at ZenSportsia is that NFT’s should be a real product created by a real company, not just a collectible created by a “project”. Like real products, NFT’s should have real utilitarian value where customers (not investors) feel like they are getting real value and benefits from their product purchase.
Given the current technology state of NFT’s being mostly focused on artwork, it’s not reasonable to want NFT’s can cure cancer or even solve real estate transaction closings. However, NFT’s should definitely be able to function as more than just artwork. At a high level, there are 3 categorical benefits that NFT’s can be used for by creators today (2 besides artwork), with the following percentages attached to the value for each:
Memberships and Clubs (40%)
NFT’s are a perfect replacement for traditional membership club structures. Traditional club memberships generally require you to pay and commit to a full year (or even multiple years) in advance, you can’t easily sell/gift/trade them, and are a pain to manage (both for the club owner and the customer).
Because NFT’s are easily tradeable, the only advance commitment that is required is the difference in price paid for the NFT less the resale value. By being on the blockchain, NFT’s can be gifted or transferred at any time, and there are numerous marketplaces where NFT’s can be sold and traded.
In terms of management, all that is required is connecting a wallet address to a club website or app for online verification and/or scanning a barcode for in-person verification. The transparency, provability, and even ability to “show off” a membership can only be done with NFT’s.
Loyalty and Rewards (40%)
Points, miles, comps, etc. are how most loyalty programs are designed. While there’s nothing wrong with those systems in theory, they don’t bring out the full potential of what can be done with loyalty and rewards using NFT’s.
NFT’s can replace tiered membership statuses that a lot of loyalty programs have by allowing those with multiple or rare NFT’s to achieve higher tiered status faster than by earning points — i.e. simply paying more money up front for an NFT can get you to a higher tiered status faster. While that may not seem fair, that’s the direction that some loyalty programs are already taking, such as American Airlines new Loyalty Points system that allow you to earn status without even flying.
NFT’s can also be used to reward members through discounts, promotions, and other perks more easily than other systems. And again, similar to membership clubs, NFT’s being more liquid, transferrable, and tradeable make them easier to transfer, cash out, or gift to someone else
Who doesn’t love some dope artwork? Yes, the original purpose of NFT’s (artwork) still matters — just not as much as everyone thinks or would like to believe. In defense of the artwork benefit, ownership of art that is verifiable on the blockchain offers a lot of value. And the notion that NFT artwork isn’t as valuable as physical real-world artwork because you can right-click an NFT, save a .jpg, and display that in your Twitter profile really doesn’t hold water when you can easily get a copy of the Mona Lisa and hang it in your room (the fact that NFT’s can be verified on the blockchain actually makes the notion of copies less an issue, as you need an art expert to verify a physical real-world original).
With all that being said, too many people still look at NFT’s solely as a collectible that they hope appreciates in value over time so that it can be flipped for a profit. As stated above, NFT’s should be first and foremost should be looked at as a product (and more specifically a software product that provides the above benefits). If you wouldn’t buy a traditional software product because of its ability to appreciate, then why buy an NFT because of its ability to appreciate?
Instead, any price appreciation of an NFT should be looked at as a bonus instead of a requirement. For example, you don’t buy your primary residence first and foremost because of the price appreciation potential — you buy it first and foremost as a place to live in. You spend your dollars on a mortgage and get a real utility benefit in return for that product. Any price appreciation you experience while living in it is a bonus. NFT’s should be looked at in the same light by consumers.
And we’re providing all of these utilitarian benefits with ZenSportsian NFT’s.
Want to see and hear me discuss these topics on video? Check out the video below that I did with our Community Manager, Ryan Hebert!