It’s almost impossible not to have heard of NFTs (Non-fungible Tokens) and crypto in 2022 even if you don't pay any attention to them. We have Prada teaming up with Adidas to launch its first NFT and U.K. Finance Minister Rishi Sunak has asked the Royal Mint to create and issue the NFT "by the summer". With governments, commercial brands and celebrities leaping in, the NFT trend is unstoppable.
While content creators are finding new ways to monetize their content and create passive income streams, their adoption of this new technology is creating a paradigm shift in how money flows through the creator economy's ecosystem.
So, how cool would it be to be able to create an NFTs collection of your own and earn a passive income in cryptocurrencies? Here are three ways for you to do so.
Mint your content and sell them as NFTs
NFTs are tokens stored on the blockchain. You can use the tokens to own digital assets such as art, music, article and video. The concept and value of NFTs revolve around the rarity and uniqueness of these tokens. The majority of NFTs now, especially the high-priced ones, are distinct, original and not interchangeable, bringing the term nonfungible to life.
Read this blog to understand more about what are NFTs.
There are a lot of NFT collections launched by celebrities, athletes and content creators that are sold out in a short period of time with remarkable selling prices and high resales values. Such as Messiverse by Lionel Messi and “Buying Myself Back: A Model for Redistribution” by Emily Ratajkowski.
However, more use cases are needed apart from digital collectables for the trend to last for good, meaning adding utilities with real-life applications. One of the common utilities for creators is using NFTs as a member pass to their gated community for premium and exclusive content and services. For example, DJ Steve Aoki is launching an NFT-gated membership club, A0K1VERSE, for exclusive access to events in both metaverse and real life.
Earn passive income via NFT royalties
Selling digital files isn’t new forsho! However, one of the more innovative applications for NFTs is the ability to guarantee credits for the original creation. This is an incredible way for creators to own the intellectual property right of their work and also to earn passive income from it because the technology allows owners to set a royalty (a fee) whenever the NFT is sold and traded on secondary markets over time.
Some of the popular NFT marketplaces are OpenSea and Magic Eden. For example, if your NFT is sold for $1,000 and you have a 10% royalty, you will receive $100. Every time your NFT is sold, you will continue to receive royalty payments, and these passive income payments will continue to rise as the asset appreciates.
Stake to earn passive income
Stake to earn could be one of the most popular passive income ideas for content creators because both creators and fans can earn rewards from supporting creators via staking. Creators can use this revenue-sharing model as part of their audience loyalty program.
In simple words, staking is a concept commonly used in DeFi (Decentralized Finance) where users pledge tokens to a pool in exchange for rewards, which then can trade, swap or sell. At Only1, creators can create their staking pools on the platform where users and fans can stake and earn LIKE tokens. Read here to learn more!
The popularity of cryptocurrencies and NFTs has grown so much in recent years that even the most well-known brands and musicians have adopted them. The technology allows creators to create their own digital content, create a gated community, and generate passive income streams.
Hopefully, this blog will help you make the decision and strategize NFTs for your content and community growth. Check out our Learn hub for more interesting and informative content about Web 3.0. If you’d like to launch your own NFTs collection for your gated community, fill out this form and our team will get in touch!