The next step in the evolution of NFTs is just getting started. Dynamic NFTs, also known as Living NFTs, are expanding the design space that NFTs can address through their ability to adapt and change in response to external events and data. Let’s study why the genre of dynamic NFTs is booming in the market.
What is a Dynamic NFT?
With dynamic NFTs, there are two aspects of metadata — the visuals, and the written data, the same as in regular NFTs. But, inputs can constantly change the metadata. Dynamic NFTs have more utility since they can respond to user interaction with the tokens, which unlocks potentially limitless utility.
In other words, dynamic NFTs, unlike static ones, are responsive and interactive. So for example, if the NFT is sold, the appearance of the NFT can change. The factors determining the change to the images can be anything in the online or real world, and they can be relatively predictable or completely algorithmically generated, depending on the creator’s intentions.
To summarize the difference, typical static NFTs have unchanging metadata, but dynamic NFTs can constantly grow and change. They are the next step in NFTs. Dynamic NFTs can constantly change, stay up to date, and provide a reason for users to want to keep them, collaborate on them, and acquire them.
What are the advantages of Dynamic NFTs?
Dynamic NFTs boost engagement. While they are constantly growing and changing, users have a real incentive to engage, co-create and own them.
Dynamic NFTs are collaborative. Communities come together to determine what variables should be baked into the smart contracts so that they can react to what they want them to.
There is a constant relevance to dynamic NFTs. By being able to respond to pretty much any online or IRL factor, they stay up to date.
Dynamic NFTs secure a floor. People always want to buy something new, therefore there will be real value to the ever-changing dynamic NFTs. But, those who hold them have many reasons to keep them, so they maintain a floor to their value.
Top Dynamic NFT collections to check right now
The generative art project by Danil Krivoruchko, Michael Joo, and Snark. art comprises 10,301 3D crystals minted in October 2021. Over time, these crystals are becoming a collective artwork. Eventually, the collective crystals will be turned into a physical sculpture, then carted across the world’s museums and galleries for anyone interested in seeing it.
The idea is that creatives could buy an individual “seed crystal”, which several days later turned into a unique OG: Crystal. This crystal would reflect the owner: the smart contract’s algorithms would generate its contours based on each wallet’s history and ID. CryptoPunk holders, for instance, had a chance of adding a special shape to their crystal.
In 2021, Playground Studios launched LaMelo Ball Collectibles with the help of Galaxis’ NFT platform. LaMelo Ball Collectibles are the official dNFT collection for the 2021 NBA Rookie of the Year, LaMelo Ball. In the weeks before the ‘21 NBA Rookie of the Year Award announcement, fans minted 8,070 Dynamic NFTs split into four different tiers, with each tier tied to a specific aspect of LaMelo Ball’s real-world career or in-game performance measured by statistical data.
The NFTs would rack up points according to data about his performance sourced from Chainlink Sports Data Feeds. A holder could choose to harvest ‘Silver Moons’ every time the Charlotte Hornets player assisted the netting of a ball, or ‘Blue Neptune’ whenever LaMelo stole the ball from an opponent. If thresholds are met, an NFT avatar could transform.
A new NFT project was implemented in collaboration between Pace Verso and OG.Art by Random International and Danil Krivoruchko. Titled Life in Our Minds, the two-part project comprises an NFT collection set to be released in October 2022 and a related interactive video sculpture – titled Mother Flock and made up of the individual NFTs – that will be unveiled later this year.
Deeply engaged with scientific research surrounding the psychology and behavior of both humans and birds, Life in Our Minds is one of the most collaborative, technologically innovative NFT projects to date.