From The BlogGuides & How To'sAdd Token Utility with a Community NFT Marketplace

Add Token Utility with a Community NFT Marketplace

Add token utility with a community NFT marketplace

A dedicated community marketplace can quickly add sustainable utility and create a flourishing NFT economy that is fueled by your cryptocurrency.

Utility has become a buzzword in both cryptocurrency and NFT communities, as investors look to projects that integrate use for their tokens. In reality, this topic is more than just a buzzword, with most strong projects having meaningful utility factored into their tokenomics. Game-play, club access, governance and merch drops are just a few examples of how tokens can provide utility, but one utility is often overlooked by project founders…commerce on NFT marketplaces.

Currently, the space is dominated by a handful of large third-party NFT marketplaces, and these platforms most commonly utilize Ethereum, Polygon, Solana or BNB for P2P commerce. While this makes sense from an adoption perspective, it boxes out new tokens from entering the conversation and claiming their value. This is especially true of cryptocurrency projects that have an active holder-base, hungry to engage and put their bags to use.

In this decentralized space, businesses and their communities no longer need to rely on centralized platforms for access. The value is being generated by the project and community, not by the third-party platform. It’s with this in mind that cryptocurrency projects should consider how a dedicated NFT marketplace can add deep utility and boost engagement. This is not only a virtual hub for your community to gather and engage, but a tool for economic empowerment of all contributors to create, grow and exchange value through NFTs that are minted, bought and sold using your cryptocurrency.  

Building this type of ecosystem that adds utility can be easier than you might think. Thanks to NFT marketplace solutions, you can avoid wasted time and resources on expensive developers. Instead, it’s possible to be up and running in a few weeks with infrastructure that is trusted, scalable and future-proof.

Wen Utility?

We all know the meme. However, this meme is founded in a reality that crypto and NFT communities seek projects with utility. Some utility tokens are created with an inherent use case. Take filecoin for example. Filecoin is used to give holders access to their network, with the goal of enabling participants to produce storage goods and services that can be exported to the outside world. If successful, as these goods and services are produced, demand for them AND the token increases.

Not every project has such a specific utility as this example, and adding utility can be a massive challenge. The goal is create an incentive for holders to perform actions with the token in exchange for compensation, experiences or products. Achieving this at scale requires a dedicated ecosystem that integrates the token and facilitates its use. An NFT marketplace is a great solution, as it provides a hub for community members to participate and engage.

If you’re thinking… “My project doesn’t have NFTs, so why would I want a marketplace?”…You’re thinking too small.

NFTs will serve as the building blocks for all Web3 platforms and communities. There are countless ways to incorporate NFTs into your community, whether it be minting content contributions, providing tokens for deeper access, or launching collections that broaden your appeal. An NFT marketplace fueled by your token and facilitating this activity adds meaningful utility.

Empowering Your HODLers

Token holders are often passionate about their bags, contributing to and engaging with the overall community. These are investors who will do what they can to ensure their tokens increase in value. An NFT marketplace not only provides a use for your token, but it also provides a home away from home for your holders to congregate, engage and grow their value. All of your dedicated community members will be incentivized to make use of this hub, promote it to their network, and help cultivate the platform over time.

Not only will current holders be empowered by an NFT marketplace, but new holders will be attracted to one. It is one thing to buy some crypto and hodl until moon, but to establish a place of commerce that makes use of the token and delivers opportunities to earn is much more impactful.

Most Web3 natives are familiar with the transaction fees built into all NFT marketplaces. Every transaction comes with a fee in the area of 2.5%. Owning a dedicated marketplace enables businesses and their community to reclaim this 2.5% and deploy it as they see fit. Whether it is used to fund new initiatives, or redistributed to token holders as rewards, reclaiming this transaction fee has the potential to be transformative and empower your holders.

Avoid Expensive & Time Intensive Development

Building and deploying Web3 dapps can be a daunting task. The time, resources and technical expertise required can intimidate projects that don’t feel prepared. These necessities are unavoidable, but that doesn’t mean they should be a roadblock to development. Options exist that eliminate the need for overpriced devs with extended timelines. Marketplace infrastructure solutions make it possible to avoid resource intensive development, and capitalize on years of trusted experience and pressure-tested infrastructure.

Blockchain is still in its infancy, and for many building in the space it is still expensive and complex. Operating in an industry at this early stage means accepting that development costs will be high and deadlines can be blurry. At Liteflow, we don’t accept this to be true. There is no reason that Web3 projects and communities should fall victim to inadequate and untested development. While the industry is young, companies like ours have been building and optimizing our infrastructure to enable use at scale.

We have designed our solutions to provide scalable, secure and interoperable infrastructure for the next generation of Web3 businesses. All of this is made possible without the big price tag or unclear timelines. With an NFT marketplace from Liteflow, you can launch a unique brand experience, expand your token utility and shape the future of your community. All of this in a month’s time, with no technical expertise required.

There is no need to build something from scratch when customizable and proven solutions exist that make the development process turn-key. Our APIs are available to everyone, helping create a custom front-end using established technologies and tools. Our network of industry leading partners provide access to a wealth of additional resources that have demonstrably driven success.

If you’re ready to add utility to your token, engage your community and own your Web3 experience, schedule a live demo with Liteflow today

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