[NFT Series] Rarity, Utility, Community: Learning the Three Most Important Pillars of NFT

NFT is valuable because of the element non fungibleso that it cannot be replaced by another. This market is still so new and there is still much to be explored further. Intense education is needed so as not to be misguided.

Scarcity, utility, and community (rarity, utility, community) is the basic pillar of any good NFT project. If a project does not have a combination of all three, it can seriously affect the overall success of the project.

Let's discuss one by one about these three things:

Scarcity (rarity)

Scarcity is the essence of a project that should not be ignored when it comes to creating a successful project. The element of scarcity is important because it is directly related to the enthusiasm and price of NFT. This helps drive demand and diversify projects by offering varying degrees of nature and utility.

Scarcity is not only important to collectors, it's even more important to the creator behind the project. Without scarcity, NFT projects have the potential to be very tedious and likely to be low on interest.

“The presence of NFT in human life is the main reason because there is ownership, it can be recorded for whom. It should be noted that the number is limited, not mass-produced. Rare elements will be felt if it is not for the masses because the number does not increase, so that is the ideal NFT concept," said Collective CEO Pungkas Riandika.

Utilities (utility)

Rare items alone are not enough to attract potential buyers. Need functionality (utility) as a plus before buying an NFT. It could be that something has no function, but the segment is very niche because it is only able to attract the interest of collectors.

Pungkas gave an example of projects that have utility, for example Indonesian culinary NFT. Collectors have the opportunity to have access to eat at restaurants, franchise chains, or the like. Then get a discount, get welcome drink, without waiting list, and others as additional offers.

Or an airline company that issues NFT, but sells it at a high price. Put the price at Rp. 15 million. Anyone want to buy? It turned out that the collectors were offered an offer in the form of round-trip air tickets for one year for the available routes from the airline.

"Even when sold in secondary market, the collector can still profit because value of an NFT it can be very expensive. This is interesting for NFT holders because the utilization is confirmed directly for them.”

Community (community platforms)

After the two points above are done, individuals who have the same interests will unite, but the trick for the longevity of a community is the key to need consistency. In order not to be one of the failed NFTs, creating a strong community is key.

It's all about: bringing authentic value to members, creating relationships through consistency and effort, and bringing in people with opposing perspectives to balance the creator's views.

"It's the same for brands. Surely they want their products to be used by consumers that reflect what the brand wants. So for the creator, how should he work on how his product was bought in the first place by his own community so that it feels appropriate? market what he wants."

This step is sought collectively for each collaboration with IP owner (creators, etc.) in expanding into new markets by increasing user loyalty to a brand. This kind of business model, according to Pungkas, is a series to create the Trifecta Synergy effect, which involves IP, Collectibles, and collectors.

The goal of Trifecta Synergy is to gain market expansion and strengthen brand loyalty by aiming for transformation from customer to collector, creating a community driven business (community driven business).

"From the synergies that we do, end gameit is community. That's why from rarity, utilities, and community platforms it should at least be on every IP owner. His thinking should be that short when looking at an NFT,” he concluded.

- Disclosure: The "NFT Series" section is a collaboration between DailySocial and Collectible