If the first NFTs had only one function — collecting, today, non-fungible tokens can be used in various industries and bring certain benefits to their owners. Today we want to discuss functional NFTs and how you can earn from them.

What are functional NFTs?

As the name implies, such NFTs provide their owners with specific functions. The most common are gamefi NFTs. Initially, players could only use non-fungible tokens as avatars, but later P2E games began to create NFTs in the form of game characters or weapons. If a player plays hard and achieves good results, they can sell these NFTs to players who want everything at once for no particular reason. But there are other ways to use non-fungible tokens in gamefi crypto. For example, at Planetex, NFTs are the ticket to an exciting game where everyone can fight and earn tokens.

But NFTs can also perform other functions; for example, they can provide access to closed societies (not only online but also offline), act as proof of copyright, and NFT domains gain popularity.

Although functional NFTs are commonly used within the metaverse today, many believe that they will find a wide range of applications in the next few years, and we will begin to use them much more often. It is assumed that with the development of web3, we can start using them for authorization on different sites or to gain access to certain information.

Conventional and functional NFTs

Today there are a considerable number of people worldwide who are interested in NFT art collections. Such tokens are easy to create and sell and straightforward to collect and earn money from. As for functional ones, they are much more complicated, and it takes many times more time and resources to create them. For example, the world-famous game Axie Infinity, which widely uses the functional NFT, was built in 2018 but gained popularity only recently, as it took the developers a lot of time to think through all aspects well and bring this technology to a good state. This phenomenon is called the Promise Effect, which says that an NFT that promises some experience will accumulate value more slowly than a non-functional NFT.

How to earn functional tokens?

Today there are several options for profiting from functional tokens, and we want to discuss only the most common.

P2E games

All P2E games have their characteristics. When you first register, you can learn more about how you can make a profit. Usually, the strategy looks like this. You receive (or buy) the first NFT, which gives you limited options. Then you play hard and get prizes — other NFTs that give you more privileges. NFT characters can have different looks, skills, and the rate of gaining new rights. You can sell earned tokens on NFT platforms or within the metaverse. Many players want to avoid spending time pumping characters but want to get a good result for a specific fee immediately.

P2E games are the most common use case for functional NFTs, and you will find many stories on the net of how players were able to make a fortune on this. For this type of income, you do not need to have specific knowledge in coding or to understand the blockchain; anyone who likes to play games and is ready to take a risk can start this type of income.

Creation of virtual NFT lands

This direction is gradually enjoying quite a lot of popularity. You can create your metaverse and make a profit — sell it or rent it out. This type of earnings is tricky, but the payoff will exceed all your expectations.

NFT development and sale

Today, more and more companies are looking to use functional NFTs. For example, a restaurant owner decided to use them as an entrance ticket to his establishment on Sundays. If earlier customers ordered tables by phone, today they buy NFTs and know their table will not be occupied when they come to the restaurant.

The development of such NFTs is a rather complicated process that requires specific skills. However, in most cases, you can receive not a one-time income but a permanent one. So, tokens give approximately 7–10% income after each resale.

Investments in new projects

Today, there are a considerable number of developers who are creating new NFT projects. They are desperately looking for investors. If you choose projects that can become successful, you can make a good profit. The most challenging thing is conducting a comprehensive market analysis and highlighting projects that deserve attention.

Resale functional NFTs

If you buy an NFT that gives access to a particular crypto community, which is growing and developing rapidly, you can resell your NFT and get a good income. As in the case of investments, the most challenging thing is choosing a community with prospects for development.

Participation in communities

Functional NFTs are often used as an entrance to various crypto communities. Participation in them may give you certain privileges, knowledge, or skills. For example, in such societies, people can share their unique experiences or give specific tips that they can use to generate income. You can also ask questions here if you need to learn something.

Also, some communities give their members certain prizes and privileges. For example, if you are mining, they can speed up this process. The type of privilege depends mainly on the community you have chosen.

Staking

Another earning on crypto assets is staking. It is often used in games and other platforms. The meaning of these earnings is very similar to a deposit. So, you put your NFTs into the account and cannot use them for a specified time, and the platform rewards you in return. With a small number of NFTs, earnings will be low but stable. But, if you are a happy founder of many crypto assets, this can bring you a good income.

Conclusion

While standard NFTs are gradually losing weight, functional ones are being improved quite quickly and find their application in various industries. Today, their owners can make quite good profits; it all depends on the type of non-fungible token and how it is used.