Blockchain for Marketing, Promotion, and More

At Innovative Dynamix, we customize every product/service so that it’s tailored to each client’s very specific needs. What’s best for, say, the automotive industry, doesn’t necessarily translate 1:1 to, say, the worlds of fashion, pet care, or beverages—and we recognize that. It’s the whole reason we exist. This is an iterative process that starts with providing a Functional Minimum Viable Product (or Functional MVP) and can be further customized to be as intricate as desired by the client, given enough time and resources. A phased approach that starts by introducing added value for the client’s operational efficiency, bottom line, and customers; and one that can end by creating true industry-wide disruption, changing the game and making our clients the leaders of their markets through genuine innovation using Cloud-Native and Web3 technologies and principles.

Here is a high-level example of the thought, preparation, and experience that goes into each and every one of our projects with clients. This hypothetical client wants to incorporate NFTs with actual utility into their offerings—and, although this hypothetical client hypothetically comes to us with their project, these are considerations that should be factored in, regardless of which partner you choose to go with.

Let’s now explore some of the available possibilities for use cases involving a hypothetical beverage company, Drink X, active in sponsoring live entertainment/sporting events and cross-promotions with gaming and retail. Let’s focus this hypothetical exploration on one of the more recent innovations to come out of Blockchain technology, the Non-Fungible Token (NFT). Up to this point, NFTs have been largely in the spotlight for the buying and selling of digital art. However, that is about as limited as saying the best use of receipts is for buying potato chips. The true utility of NFTs lies at the heart of the technology as a digital Smart Contract, a record that is secure because it is essentially backed up many times over and is non-fungible, meaning that it cannot be swapped or maliciously altered, is cryptographically unique, and publicly authenticatable.

An NFT is a “contractual bucket” that can hold anything from lines of code to a real estate deed, from a single Tweet to a ship’s manifest, from a feature film to a global vacation, cars, boats, vintage Levis,… Depending on the format of the NFT “bucket,” the contents could even be set up to change under specified circumstances or over time, like; a patient’s medical records, shipment tracking, or a customer’s participation updates for a loyalty program (when the 10^th sandwich is free!). Any ownership transferred via a contract or receipt can be provided, secured, and guaranteed with an NFT. (While the products themselves could be forged or counterfeited by bad actors, the contracts cannot; making NFTs far more secure than existing contracts or receipts.) An NFT holder can trace back the entire commercial history of their purchase, back to the first time it was sold/provided as an NFT transaction.

Drink X is still learning about how the Blockchain works overall and they are eager to learn about the possibilities. They decide to start their investigation leveraging some of their real-world circumstances to see how NFTs might be able to enhance what they’re already doing. They settle on three main use cases.

EXAMPLE USE CASE No. 1/3:

NFT/PERKS AS EVENT TICKET BONUSES

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To connect with consumers, Drink X is looking at entering the NFT space with the general public’s current limited focus and understanding of NFTs but is open to taking it another step further. Drink X will be sponsoring a performance by the artist “Great Performer.” They want to go beyond brand placement to build a stronger and more persistent relationship with Consumers/Attendees that will also enhance the experience of Great Performer’s event. The goal being; an “everyone wins” scenario, but Drink X is on a tight timeline for this initial outing, Great Performer’s show is just a few months away. What can they offer as part of an initial Functional MVP?

Scenario A: Value-Add Collectibles

Drink X decides to keep it simple, creating a series of digital collectibles (the public’s current most commonly understood use case) representing Great Performer, the specific event (and possibly the location/venue), and, of course, Drink X. These digital collectibles could come in a variety of forms.

• Event-specific photographs
• Poster art
• Promotional illustrations/graphics
• Special message from Great Performer talking about the event and Drink X
• Unique live recording, audio or video
• Game/gamification application
• Special photo filters
• Interactive augmented, virtual, or other immersive reality experience
  • A virtual “hologram” overlay or 3D model claimants can use to augment photos/videos taken during the event (or even after)
• Metaverse wearables
• …and so on, along these lines.

Any of these elements can be created and minted as NFTs individually or as bundles. The limits are only; available time, resources, licensing, and imagination to create the content for the minted NFTs. With this approach, Drink X hits the ground running for their initial NFT offering, creating a collectible for Attendees/Claimants that is likely to increase in value due to the rarity of limited mintings only for those purchasing the NFT Ticket Package(s).

Scenario B: Including Added Initial Utility

Drink X would like to take things one step further for their initial NFT bonus offering. They would like to start introducing utility to their special ticket packages. Aside from the value-add of the NFT content alone, they would like the package to offer tangible benefits. Due to the time constraints, they decide to leverage existing technologies and workflows, in addition to the NFT functionality alone, to create dynamic bundles for the Claimants.

Using existing systems established to transfer data for the acquisition of goods/services, they decide to include this as part of the NFT Ticket Bonus bundle(s). These NFTs contain any of a choice of Quick Response Codes (QR), Barcodes, Coupon Serial Numbers, etc. that Claimants can use to redeem goods/services through vendors/providers Drink X is working with for the event. This approach uses technology already implemented on a daily basis by those vendors/providers rather than asking them to make changes to their existing workflows.

To enable the step of transferring NFTs to the Claimants, Drink X already needs an interface for collecting Claimants’ data, including email addresses, Blockchain Wallet addresses, and so forth—they decide to use this step to also create a code unique to the event AND that individual. Drink X knows that their vendors/providers are already using QR codes to track various aspects of their respective businesses so, they decide to use QR for this reason and because it can better hold the amount of data necessary. Tying this code to the individual Claimant reduces the risk of code sharing and other fraudulent activity. The QR code(s) for redeeming tangible real-world rewards are included in the NFT unique to that user and can be displayed on their mobile device for redemption in the same way a printed or email QR code is redeemed.

Another NFT utility integration approach that Drink X could greenlight, if the venue systems supported it, is Near-Field Communication, or NFC, to digitally transmit the required codes for redeeming items and accesses. However, this would be contingent on a more intricate development of the utility app Drink X is leveraging on NFT users’ mobile phones, providing greater functionality supporting the broadcasting/receiving of NFC signals, as well as the vendors’ redemption systems being capable of Near Field Communication. In this hypothetical, they’re short on time for such development but they’ll be looking to use this approach for their next event.

Now, the doors are open for including benefits in addition to the NFTs’ digital bonuses for the special ticket tier package(s), maximizing the short timeframe Drink X has to work with. Possibilities could include—

• Fast-Track access line
• VIP bar/lounge access
• Preferred parking at venue
• Limited edition bottle of Drink X, made exclusively to commemorate the event
• Merchandise; hat, tee-shirt, bag, hoodie, glassware, novelty, etc.
• Free beverage redemption at event
• Backstage access to exclusive meet & greet with Great Performer
• Flyaway and tour of Drink X’s HQ
• Lottery/raffle/sweepstakes entry for the giveaway of “big ticket” prize(s)
  • Exclusive seating/access at event, brand new vehicle, year’s supply of Drink X, etc.
• Exclusive framed commemorative of the event signed by Great Performer
  • Poster, art, photo, item used in performance, one of the limited edition Drink X bottles, etc.

Drink X has a lot of options, limited only by the available budget, time, and access to goods/services.

Outcome:

Although there are so many more possibilities to explore and implement, Drink X decides on the following approach to maximize the time available, their current budget for the event, and the experience of the Attendees who become Claimants of the special NFT Ticket package(s).

BRONZE	SILVER	GOLD
3000 Available	1500 Available	500 Available
NFT Includes: Poster Art and a Photo Filter	NFT Includes: BRONZE, Plus: Illustration and an Audio Recording	NFT Includes: BRONZE & SILVER, Plus: Video Recordings and an Interactive AR App Experience
Additional Perks Include: Fast Track Line, Free Beverage, 1 Entry to Giveaway Raffle, and a Free Merchandise Item	Additional Perks Include: Fast Track Line, 2 Free Beverages, 5 Entries to Giveaway Raffle, 2 Free Merchandise Items, Limited Edition Bottle of Drink X, VIP Bar/Lounge Access, and Preferred Venue Parking	Additional Perks Include: Fast Track Line, 3 Free Beverages, 15 Entries to Giveaway Raffle, 3 Free Merchandise Items, Limited Edition Bottle of Drink X Signed by Great Performer, VIP Bar/Lounge Access, and Preferred Venue Parking
All Tiers are priced to cover associated costs for providing the given benefits while taking into account the marketing benefits to Drink X.

Drink X also decides to offer a Platinum Tier that includes everything from the Gold Tier, plus—

PLATINUM (5 Available)

• NFT Additions:
  • A Special Personalized Greeting/Thanks Recorded by Great Performer
  • Backstage Photographs
• Perks Additions:
  • Backstage Meet & Greet with Great Performer
  • Framed Memorabilia of Event, Signed by Great Performer
  • A Tour of Drink X’s Headquarters

For the Virtual Audience, viewing the event online, they receive special Virtual Event versions of the available NFT packages—and in-venue only perks are replaced with appropriate remote experience benefits.

VIRTUAL AUDIENCE (Adjustments to Existing Package Tiers)

• Virtual Event NFTs:
  • Each tier gets Metaverse Wearables they can use while watching in VR and beyond
  • Photo filter with unique upload access during the event that displays on a special ‘virtual audience screen’
• Virtual Event Perks:
  • Access to Special Camera Feeds—
    • Front Row
    • Backstage
    • Onstage
  • Early Access to Merchandise to order/ship and then enjoy while watching
  • A Pre-Show Stream of Great Performer as they get ready to walk onstage
  • A Snacks/Meal & Beverage Kit, featuring Drink X, delivered to enjoy during the event

EXAMPLE USE CASE No. 2/3:

NFTs FOR GAMING

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In today’s digital landscape, this is the easiest connection to make. For anyone who’s ever played video games in the last 25+ years, they’ll recognize the growth of digital assets for games. From way back to Link’s vital Magical Boomerang in “The Legend of Zelda” to the legendary Thori’dal, the Stars’ Fury rogue’s bow in “World of Warcraft” to the original Renegade Raider playable character skin in “Fortnite”, players covet special gaming items. These are essentially collectible digital action figures and accessories—some items providing gaming advantages, others just cosmetics (symbols of dedication to show off to other players for prestige). Providing them as NFT collectibles cements a player’s status of involvement in the community and also opens the door to resale value, should the player’s opportunity/desire arise.

From entertainment properties (via the likes of, Marvel, DC, Twentieth Century, Paramount,…) to celebrities (like, Ariana Grande, LeBron James, Bruno Mars,… even—and logically—Pokimane) to consumer goods (like, Nike, Balenciaga, Ferrari,…)—businesses looking to expand their consumer exposure have already been flocking to the gaming world, licensing their brands for these items in popular video games. (And the leap into the Metaverse is already well underway.) Purchasing the slick new Balenciaga playable skin, sporting the company’s signature clothing, is a gateway for consumers—an affordable way to keep the luxury brand top of mind for that new potential customer to save up and make purchases IRL (“in real life”). After running around a game as Bruno Mars, the player is more likely to purchase that new song track when it’s released or attend a concert. And they’ll be sure to sign up for Netflix to watch “Stranger Things” after playing their favorite game as the show’s Demogorgon monster.

So, the precedent is already well-established and successful. The next logical step is to provide these collectibles as NFTs. Let’s look at some examples of how Drink X might pursue such gaming promotions.

Scenario A: Games with Unlocked Possessions

Drink X knows Super Game allows players to freely engage in commerce/trade of digital assets inside and outside of the game itself. Super Game is now supporting NFT items as well, including their ownership transfer. This makes the available options for incorporating NFTs nearly limitless, as players may acquire as well as resell digital valuables.

Drink X starts brainstorming all of the potential integrations with Super Game. Drink X knows that the game’s developer, Super Inc., will ultimately create the digital asset(s) for Super Game on their behalf, so they need to make sure it’s a natural/logical fit within the dynamics of the existing game. Possibilities could include—

• Branded digital wearables
  • Shirts, hats, item wraps,…
• A Drink X cannon that sprays the drink to heal players
• Drink X’s mascot as an in-game pet
• A branded glider used to drop into a new game map
• A branded utility item, like a novelty pickaxe used for digging or breaking through walls
• A contrail when the player’s character is falling that sprays Drink X in their wake
• A Drink X banner to identify the player’s team during matches
• An emote animation where the player’s character pauses in-game to take a refreshing chug of Drink X
• Playable characters
  • Drink X spokesperson or people, a living bottle of Drink X, an anthropomorphic fluid humanoid of living Drink X itself, the Drink X mascot
• And/or any special items unique to Super Game

Outcome:

These assets could be play-to-win, meaning that certain achievements must be completed in-game in order to acquire the NFTs. Depending on the level of achievement, the player may earn graduated tiers of assets. Or, they could be sold separately, outside of the gameplay. Any of which could look like—

BRONZE	SILVER	GOLD
3000 Available	1500 Available	500 Available
Requires 10 Achievements	Requires 50 Achievements	Requires 100 Achievements
Or, $10	Or, $50	Or, $100
NFT Includes: Branded wearables set	NFT Includes: BRONZE, Plus: Emote, Playable Character, and Branded Pickaxe	NFT Includes: BRONZE & SILVER, Plus: Glider, Banner, Contrail, and Pet
When purchased separately, all Tiers should be priced to cover associated costs for providing the given benefits while taking into account the marketing benefits to Drink X.

This would be a “first come, first serve” situation where players compete to complete achievements as quickly as possible to earn and mint the highest tier NFT package still available (or purchase first, in that approach). As soon as a player reaches Gold, their NFT is minted/transferred to them. Once the Gold tier is exhausted, every player eligible for Silver tier NFTs gets their minting/transfer. Once Silver has all been claimed, the remaining players compete for the last of the Bronze tier packages.

Scenario B: Games with Locked Possessions

Drink X wants to create a promotion with the Awesome Fun game. Awesome Fun is an insular game that doesn’t allow for players to sell/trade their in-game acquisitions, nor does it have any NFT support. Drink X will have to get creative regarding NFT rewards, possibly incorporating out-of-game acquisitions.

Awesome Inc., the publisher of the game Awesome Fun, does have the functionality to email players once an achievement level is attained, so that a notification can be sent with a code that could be used to claim NFTs out-of-game while also unlocking associated in-game items at the same time—opening the door to a hybrid approach for offering in-game and out-of-game rewards. This also allows Drink X the choice to reach players/consumers through in-game achievements or in-game/out-of-game direct sales.

In this scenario, the resale value of any NFT will be diminished after a player claims any associated in-game valuables which, in Awesome Fun, are non-transferable. (Like many collectors, some players may find value in keeping the gaming assets “in the box,” by not redeeming and using the digital rewards in-game, to preserve the resale value of their NFT.)

However, with the hybrid in-game/out-of-game approach, out-of-game items may be transferred to subsequent owners, retaining that portion of the NFTs’ value. Reference the Drink X’s in-game brainstorming above for gaming element possibilities—and then here are other out-of-game brainstorming items that could be offered in collaboration with Awesome Inc.’s Awesome Fun game branding—

• Exclusive limited edition Awesome Fun bottle of Drink X
• Merchandise; hat, tee-shirt, bag, hoodie, glassware, novelty, etc.
• A collectible figure of the in-game Drink X character
• Campus access to tour Awesome Inc.’s headquarters*
• Lottery/raffle/sweepstakes entry for the giveaway of “Big Ticket” prize(s)
  • $5,000 worth of in-game currency, brand new vehicle, year’s supply of Drink X, a scholarship to study game design, an internship at Drink X, a paid vacation, etc.*
• Flyaway and tour of Drink X’s HQ*
• An exclusive framed collectible featuring Awesome Fun’s crossover with Drink X
  • Poster, art, photo, physical replication of Drink X digital item used in-game, etc.

* Note that redeemed experiences may not be available for NFT resales, at Drink X’s and/or Awesome Inc.’s discretion.

Outcome:

With all of these digital and physical options now on the table, the tiered packages might look like the following—

BRONZE	SILVER	GOLD
3000 Available	1500 Available	500 Available
Requires 50 Achievements	Requires 100 Achievements	Requires 200 Achievements
Or, $50	Or, $100	Or, $200
NFT Includes: Branded digital wearables set	NFT Includes: BRONZE, Plus: Emote, Playable Character, and Branded Pickaxe	NFT Includes: BRONZE and SILVER, Plus: Glider, Banner, Contrail, and Pet
Additional Perks Include: Hat, Poster, 1 Lottery Entry	Additional Perks Include: BRONZE, Plus: Tee-Shirt, Collectable Figure, 5 Lottery Entries	Additional Perks Include: BRONZE and SILVER, Plus: Hoodie, Tour of Drink X HQ, Limited Edition Bottle of Drink X, 10 Lottery Entries
When purchased separately, all Tiers should be priced to cover associated costs for providing the given benefits while taking into account the marketing benefits to Drink X.

For Consideration:

In both of the above scenarios, NFTs would likely be either earned or bought—probably not available both ways simultaneously. Depending on the promotion’s presentation and the given gaming community, offering the option to earn or buy at the same time may cause derision amongst players who buy vs those who invest time playing and reflect badly on Drink X’s promotion.

One approach that could work, mixing these pay vs play models, is if the basic NFT skin/playable character is available for purchase at the same price for all tiers (3000 Bronze + 1500 Silver + 500 Gold = 5000 total) and then the 5000 purchasers must compete to complete challenges as quickly as possible to earn the highest tier NFT version they can, “while supplies last,” for the premium variations/augmentations of the gaming asset.

EXAMPLE USE CASE No. 3/3:

NFT/PERKS FOR RETAIL – PHYSICAL/EXPERIENTIAL

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By the time Drink X is ready to start brainstorming approaches for NFTs in the retail space they have a pretty good idea of all the potentials available. Anything virtual, physical, or even experiential could be sold/provided as an NFT! So, now, they’re interested in exploring beyond what traditional contracts/receipts can easily provide and finding out what new doors NFTs can open.

On their own, Drink X has even started using Blockchain logistics as manifests/logs to track their 37 special ingredients coming from farms in South America, Africa, and Asia as they make every step of their way to Drink X’s facilities. Ensuring that fair-trade practices are guaranteed to their independent farmers, distributors are meeting timelines, and points of failure are precisely pinpointed for any lost inventory. It’s been a success!—ensuring the farmers are paid a fair price, shipments are arriving on schedule, and all while reducing Drink X’s logistics management costs! The payments/costs for each involved party are warrantied for all involved partners, from end to end, from the farm fields to Drink X’s mixology tanks to the bottles on store shelves via Blockchain Smart Contracts. They love end-to-end tracking and logistics management on a Blockchain.

Drink X is interested in joining forces with several other businesses for their new promotional push. They’re talking with Clothing Wow, AUTOcars, Fast Flights, GOtels Hospitality, Mobile Tech, R.E.A.L. Estates, C’eye’ber Artz, and Luxury Living. They put together a list of some of their favorite options for Drink X tie-in promotions.

• A free year of Clothing Wow seasonal boxes containing personalized items, custom fit to the NFT owner—since Clothing Wow doesn’t typically offer this service, only the NFT holder is eligible to resubscribe
• Lifetime standard service and maintenance for a new car from AUTOcars
• Priority booking and a year of free ticket upgrades when flying Fast Flights
• 100 nights of hotel stays for 50% off at GOtels Hospitality properties around the world
• A limited-edition Mobile Tech smartwatch with Drink X themed band
• 200 miles of ride credits with AUTOcars iTaxee service
• 3 months of free time-share access at any of R.E.A.L. Estates global properties, when available
• Digital collectibles from C’eye’ber Artz
• A home makeover from Luxury Living

Drink X is particularly inspired by some of the bigger ticket offerings being presented—

• Clothing Wow is interested in designing a special moto leather jacket featuring Drink X’s company colors and logo. They want to make it a premium limited edition release, only 1000 will be sold and that’s it. However, because Drink X would prefer to see these special jackets on the streets rather than framed on the private walls of collectors, the owner of the NFT will be entitled to an identical replacement from Clothing Wow in the case of loss, theft, or damage every 36 months, as long as Clothing Wow is in business. To retain/grow the NFT’s value, this perk is transferable to any new owner of the NFT.
• With AUTOcars, Drink X learns they’re getting ready to release their all-new electric SUV, the eVenture and a cross-promotion sounds like a great idea for both companies. They’ve agreed to offer 100 NFTs that lock in the lease price at cost for as long as the NFT owner wants to lease the latest models of the eVenture (or until the eVenture line is discontinued). AUTOcars agrees to allow these NFTs to be resold so long as there’s a stipulation that a percentage of the resale price between private sellers goes to them (this is programmed into the Smart Contract for transferable ownership).
• An initial conversation with Fast Flights quickly grows to include GOtels Hospitality. The NFT promotion they and Drink X arrive at looks like this; travel to select destinations around the globe, full accommodations, special events/tours/experiences… Winners of these NFTs can circle the globe all at once, staying at GOtels Hospitality properties, exploring sites/events of interest, or break it up into multiple trips. All flights and hotel stays for the NFT owner and a guest are included in the NFT, along with free Drink X the whole way.
• A similar team-up to the one with AUTOcars, but with Mobile Tech is on the table. Their new Krystal Foan, with access to a specialized quantum AI virtual assistant, is ready to go to market and they agree to make a Drink X branded release sold via NFT. The consumer buys 1 of the 1000 Drink X NFT Krystal Foan models and is then eligible to buy every subsequent release (specially Drink X branded) at cost as long as the line of phones remains in production.
• R.E.A.L. Estates and Luxury Living agree to an NFT sweepstakes where the winner gets a new home from R.E.A.L. Estates with interior design by Luxury Living and a year’s supply of Drink X. At any time the winner may sell the property as the deed and title are elements of the NFT, reducing much of the paperwork and hoops necessary in the existing real estate market or go the traditional route—after all, it’s their NFT.
• Drink X gets excited after meeting with C’eye’ber Artz and brings Clothing Wow and Mobile Tech back into talks. There are emerging developments for organic light-emitting diode (OLED, organic LED) technology that will allow for fully flexible “textile screens.” These “screens” can be incorporated into jackets, hats… and even shoes, and display anything that could be shown on a phone, computer, or television. This NFT offering has the potential to incorporate additional NFTs. Drink X thinks that hats and shoes will make the biggest impact. Here’s their plan—
  • Mobile Tech will provide the textile screens, components, and also the connectivity services
  • Clothing Wow will design, manufacture, and distribute
  • C’eye’ber Artz provides the sparkle by creating unique Drink X digital art that can be displayed on the clothing
  • Drink X splits the design and manufacturing costs with their partners, as all agree that this promotion will make a big impact for all of them

The articles of clothing could each be their own NFTs, the works of art could be individual NFTs, or elements could be bundled in any number of ways—such as the promotion they agree to; offering 500 NFTs, each including a hat, pair of shoes, Mobile Tech wireless service, and 5 C’eye’ber Artz limited edition works to display.

Outcome:

Drink X decides to bundle offerings thematically. NFT packages contain a swag bag of exclusive branded hats, tee-shirts, cups,… and of course lots of free Drink X included.

The Drink X “Vacation Experience” Offering

BRONZE	SILVER	GOLD
300 Available NFTs	50 Available NFTs	10 Available NFTs
$1,000	$6,000	$12,000
100 nights of hotel stays for 50%	free flight ticket upgrades, 3 months of free time-share access	12 global destinations—all flight/hotel expenses included
When purchased separately, all Tiers should be priced to cover associated costs for providing the given benefits while taking into account the marketing benefits to Drink X.

The Drink X “On the Go” Offering

BRONZE	SILVER	GOLD
300 Available NFTs	150 Available NFTs	100 Available NFTs
$100	$1,000	$25,000
200 miles of iTaxee service	2,000 miles of iTaxee service	at-cost for-life eVenture SUV leasing including standard service and maintenance
When purchased separately, all Tiers should be priced to cover associated costs for providing the given benefits while taking into account the marketing benefits to Drink X.

The Drink X “Collectors’” Offering

BRONZE	SILVER	GOLD
300 Available NFTs	150 Available NFTs	100 Available NFTs
$1,000	$6,000	$8,000
seasonal clothing box for 1 year (with exclusive option to renew), smartwatch, 1 exclusive digital art	BRONZE, plus: moto jacket for life, Krystal Foan model upgrades at-cost for life, 2 exclusive digital arts	BRONZE and SILVER, plus: OLED hat and shoes, 7 exclusive digital arts
When purchased separately, all Tiers should be priced to cover associated costs for providing the given benefits while taking into account the marketing benefits to Drink X.

POTENTIAL FOR ALL USE CASES:

“ROYALTIES”

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For companies looking for some additional profit off of their NFT offerings, whether sold or initially free, NFT Smart Contracts may be structured in such a way so that a percentage may be collected off of any/all secondary sales of the NFT and its associated property/properties.

For example: Every time that gaming cosmetic is resold, 10% might go back to the original issuer. Maybe the initial purchase of the limited edition cosmetic was purchased for $20 but it was so rare and in demand that the “street price” quickly jumped to $2,000; a gamer may decide to resell it for a profit (when allowed by the particular game) while making the issuer an additional $200. If the collector market raises the price further to $200,000, that second purchaser may decide to resell again for a profit of their own and the issuer now makes another $20,000, off of something they originally sold for $20—and on and on…

POTENTIAL FOR ALL USE CASES:

“LIVING NFTs”

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As Drink X learned during their exploration, NFTs can be structured to allow for added updates/amendments or include dynamic content, which they chose to do for tracking their shipments. These “updates” are tied to triggering events, such as when a shipment is recorded reaching a certain port. While the NFT contract itself cannot be altered, a well-constructed NFT can change the information it holds or change the exposed state of other digital content it represents. Beyond tracking the progress and status of a shipment to the conclusion of the transaction, here are a few other potential functionalities—

• A digital painting engineered to change from day to night, with the weather and/or seasons, in sync with where the viewer is or from where their home is
• A digital illustration engineered to change emotion based on how the stock or crypto markets are performing
• A patient’s medical history that’s updated with each new visit to their physician
• A “scavenger hunt” NFT that unlocks more rewards the more tasks the owner completes
• A “punch card” NFT that records 10 transactions before unlocking a freebie and then resets to zero
• A “checklist” NFT that records transactions until all benefits included have been redeemed
• An updated record of a car’s service/repair history
• Combine, mix and match, all these functionalities and more until it’s truly unique
  • (like an NFT with a map that updates in real-time with photos and the location of the shipment in progress, an NFT with a celebrity-voiced AI that the user can talk to for hints as they unlock more clues in a scavenger hunt, an NFT that keeps adding sandwiches to a picture until the owner has purchased enough to earn a big party platter, an interactive NFT calendar/clock for setting reminders and alerts, etc.)

POTENTIAL FOR ALL USE CASES:

“NFTs FOR GOOD”

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Another popular angle lately has been NFTs that offset their environmental impact by donating a portion of sales/resales to organizations focused on the climate and environment. Similar to the functionality for the Royalties potential, this gets baked right into the formatting of the given NFT. Of course, publicizing that a percentage of NFTs’ prices are being donated is also a great marketing angle. Charities supporting social causes could have a similar marketing goodwill effect. Contributing to positive change through the Blockchain is a real feel-good angle for sellers, buyers, and the whole world.

Now, let’s take a peek at what goes into making something along the lines of all the above use case examples work.

BEHIND THE SCENES:

TECHNOLOGY & FUNCTIONALITY CUSTOMIZATION

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Innovative Dynamix recommends a phased approach to maximize any time constraints, available budget, and optimized functionality and utility throughout phases. Ongoing and iterative discovery starts in Phase 1; Functional MVP and continues through Final Release.

Phase 1 — Functional MVP

Overview:

Since the Live Event use case should cover most, if not all, of the functionality that could be used for the Gaming and Retail use cases, we’ll use that as our reference approach here. In this initial phase, a framework will be established to mint and distribute NFTs for Attendees wishing to enhance their experience both during and after the event as an add-on to the existing perks experience.

Not only will ascending ticket tier packages enjoy perks during the event—such as access to Fast Track queues, VIP Lounges, complimentary drinks, free merchandise, special meet-and-greets, and so forth through existing rewards redemption mechanisms—they will also be enabled to claim a commemorative NFT marking the occasion. Complexity and functionality of NFT Smart Contracts will, by necessity, begin very simply and grow over time as the Smart Contract code library is expanded with inventive and unique elements.

This limited edition NFT would provide the purchaser with a memento of the event. Potential NFT content could be nearly anything but initially recommended digital items may be:

• Event Poster (and/or special variant)
• Exclusive Event and/or Performer(s) Photo(s)
  • a possibility for NFTs delivered after the event is that this could be tied to a potential photo op. for the Attendee during the event (or the NFT could dynamically update and add this unique element as a special surprise)
  • for the top-tier ticket package, this could include a unique photo and/or footage of the Attendee meeting the Performer(s)
• Illustration or Graphic representing the event
  • maybe even a printable interactive/assemblable keepsake
• Exclusive Greeting/Thanks recorded by the Performer(s) of the event
• Video Clip(s) from the event
• and more possibilities, as appropriate to the given event…

During Phase 1, tickets, special accesses, and hand-outs/redeemable items tied to the given ticket tier package would be provided to Attendees by the event’s ticketing service of choice in cooperation with the production staff. Additionally, upon the Attendee providing a valid email address, they will receive a link to provide their personal information, including a valid Blockchain Wallet address to receive their collectible NFT.

• The Attendee/Claimant will need to complete the submission of their Blockchain Wallet address within a given window in order for their claimed NFT to be minted with those of the other Claimants. This can be included as part of the ticket purchase path.
• The NFTs are then transferred to the registered Wallet accounts, completing the transaction.
• The perceived/inherent value of the NFTs has the potential for increased worth for Claimants based on the number of NFTs actually claimed, minted, and delivered.
  • For example; while there may be an available limit of 3000 NFTs but only 2000 Attendees become Claimants within the required window, the increased rarity raises the minted NFTs’ value.
• Minting NFTs together ensures that they are of the highest value for the Claimants by minting only those NFTs claimed and no more. This also reduces gas fees and other costs to the Issuer, costs associated with minting and delivering NFTs to Claimants.
  • Lazy minting is the mechanism of choice, which mints the NFT to the Blockchain at the time of first purchase and negates the possibility of ‘unsold inventory’ or unnecessary minting costs. 

Depending on the NFT content and the event requirements, the NFT itself can be delivered in one of two ways.

NFT Content Locked Before Event	NFT Content Finalized During/After Event
These NFTs can be transferred to all Attendee Claimants en mass at any time/date before, after, or during the event chosen by the Issuer. Lazy minting can also generate each NFT at time of purchase.	There are unique advantages to both minting mechanisms (All-At-Once and On-Demand or Lazy Minting). All-At-Once minting incurs lower costs and Cryptographically assures the buyer that there can and will never be any more ever created in perpetuity throughout the universe. On-Demand or Lazy minting delays the larger minting costs until the time of first purchase, however, there is a required element of trust that the seller is being honest about the number of NFTs that will be sold as the purchased items are in fact Fungible until they are minted onto the Blockchain. There are other nuanced differences in techniques that will begin to become apparent as Blockchain technologies emerge.
This option is best for any content that will enhance the Attendee’s experience during the event as an NFT Claimant.	This option is best for extending the window to claim for “stragglers” and/or if the event itself will provide the source material for any of the NFT content.
For NFTs that will enhance the Claimant’s event experience, a potential claim window might close the week prior and be delivered a day or two before the event to ensure Claimant has time to access their NFT.	For NFTs including content sourced from the event itself, editors, photographers, or artists may need time to finalize content and submit it to the Issuer for minting and transfer. This may allow for a window to claim being extended to a week or two after the event, after which, all Claimants would receive their NFTs.
There are unique advantages to both minting mechanisms (All-At-Once and On-Demand or Lazy Minting). All-At-Once minting incurs lower costs and Cryptographically assures the buyer that there can and will never be any more ever created in perpetuity throughout the universe. On-Demand or Lazy minting delays the larger minting costs until the time of first-purchase—however, there is a required element of trust that the seller is being honest about the number of NFTs that will be sold as the purchased items are in fact Fungible until they are minted onto the Blockchain. There are other nuanced differences in techniques that will begin to become apparent as further Blockchain technologies emerge.

Technical Functionality Walkthrough:

With the assumption of ticket sales being handled through a services partner, like Eventbrite, the ticket tiers created for the event should include ‘NFT Tiers’ with the requisite price increase to cover the cost of gas fees for minting (gas fees are determined by the complexity of the Smart Contract underlying the NFT and the present network congestion at time of minting). A reasonably accurate estimate of the gas fees for mintings can be determined only after the content of the NFT is known, therefore estimates will be more accurate in the case where NFT Content is locked before the event.

After a Purchaser buys one of the NFT-tier tickets from Eventbrite, included in the confirmation email for that ticket will be instructions and a link to fill out the additional information required to mint the NFT and deliver it to the Purchaser/Claimant’s wallet. Alternatively, the custom fields can be added directly to the Eventbrite purchasing page for those ticket tiers (this functionality is already enabled in Eventbrite).

If the content of the NFTs, as created and delivered in advance of the event, contains images or codes (QR, Barcode, Coupon codes) they can be used at the venue to redeem physical goods or special accesses/benefits on-site, given the assumption that the on-site event staff have an existing mechanism to validate said images or codes and their redemption status.

When either all tickets from a particular tier have been purchased or at a specified time after the ticket purchase availability window has closed, the submitted email addresses and Wallet information for the Claimants are retrieved, assets minted, and the completed NFTs are transferred to the Claimants.

For the Virtual Experience, a custom, standalone “lazy minting” site can be created and linked-to from the event viewing portal, giving virtual Attendees the ability to mint a POAP NFT (Proof of Attendance & Participation). In Phase 1, the NFT will not have any direct utility in the sense of providing access to exclusive content during the event—but may be accompanied by access, outside the NFT, to enhanced viewing options by the provider and/or other additional virtual-viewing perks in addition to the NFT, which itself could contain exclusive codes for post-event redemptions. Over time the Virtual Experience NFTs may include secured links with conditional access to unique virtual experiences—elements that only the NFT owners have access to, like; secure fan forums, backstage video feeds, VR VIP seats, etc. 

Involved Tech:

Required technologies to execute the Phase 1 plan are; 

• API and Console access to Ticket Seller’s (Eventbrite in this example) account for customizing the purchase flow and tying user identities to the individual NFTs to be minted
• A minting account at an NFT marketplace of choice which largely depends on content included in the NFTs and compatibility with external wallets for transfers as well as features of the supporting Blockchain
  • OpenSea and Rarible are currently popular choices, but this remains TBD until further discovery and decisions as to the NFT content

Dependencies:

• Ticketing management service (ex. Eventbrite) API access
• Accurate documentation of the purchasing path so that functionality to accommodate NFT Minting can be amended BEFORE TICKETS GO ON SALE
• Additional fees for processing added to NFT ticket tiers and then transferred to Minting Wallet BEFORE minting can be completed
• Style Guide and Marketing Collateral for any additional redemption sites that are created for claiming NFT post-purchase (if there is opposition to adding additional custom fields to ex.-Eventbrite purchase paths)
• Properly formatted NFT content to preconfigure NFTs and Estimate Minting Costs
  • Also, any desired unique codes (QR, Barcode, Coupon, etc.) that would traditionally be printed or emailed to purchasers for in-venue redemption. This assumes NFTs are minted and distributed before the event as opposed to NFTs that contain content gathered during the event.

Estimated Price Range for assembling customized Content & Claimant Cataloging, and NFT Minting & Transferring platform:

DISCLAIMER: FOR EXAMPLE PURPOSES ONLY. Contingent on a full and proper discovery process (even if accelerated, with associated rush fees) to determine exact client needs/goals to start with. Dependent on client’s desired features, content, and functionalities within the scope of Phase 1. An example estimated generic hypothetical tiered price range from Essentials, through Basic, to More Complex right out of the gate, based on an Innovative Dynamix quote in 2020 for a smaller client looking to augment their existing platform for customer engagements with modest NFT goals similar to a few of the hypotheticals in this article, looked like:

ESSENTIALS	BASIC	MORE COMPLEX
2020 Estimated Pricing: ~$450,000 – $1,500,000 (covering fundamental functions/features outlined here)	2020 Estimated Pricing: ~$550,000 – $2,500,000 (including many of the hypothetical use cases’ functionalities outlined here in addition to the fundamentals)	2020 Estimated Pricing: ~$1,000,000 – $10,000,000+ (including all fundamentals and hypothetical use cases mentioned here plus some extra bells and whistles available to add within time constraints)

Timeline Estimate:

Preliminary Estimate of Time to Completion of Phase 1, Functional MVP is approximately 90 days for the Essentials approach from the day a contract is signed and with the ongoing and timely cooperation of Issuer’s appropriate stakeholders, and depending on adjustments to performance scope and requirements from what is laid out here. A very bespoke and hands-on process that will require refinement to easily replicate. Basic and More Complex approaches will likely add more time to the estimate, depending on scope.

Phase 2 — “The Big Lift”

This phase would begin with an advanced discovery and scoping process to define the next stage of system performance and preferred/vital functionality requirements. This discovery process would take anywhere from 30-90 days, depending on initial discoveries made during Phase 1, Functional MVP. Upon completion, work could start immediately, taking anywhere from 3-18 months depending on scope, scale, and requirements identified during the discovery process.

The Discovery Process to start Phase 2 will include:

• Discovery sessions and Deep Dives with stakeholders for—
  • Educating stakeholders about the current function and utility of NFTs
  • Brainstorming unique and novel use cases to be implemented; potentially—
    • Rearchitecting existing ticketing and rewards redemption processes for event and venue-based entertainment
    • Enhancing Virtual Event Attendance
    • Bridging IRL and Metaverse Experiences via Blockchain tech
    • Tightly integrating NFT collectibles into all event-based systems
• Designing a technology roadmap specifically for Web3 technologies as they become more robust and begin to provide production-grade services that enhance consumer experience
• Project plan and resource requirements for executing the completed design

The discovery process will assess the success of Phase 1 and identify the business cases that can most benefit from migration to Cloud-Native and Web3 technologies as they emerge for the parent platform as well as for the platform customers. The results of this discovery and real-world implementation/experimentation will also identify and dictate involved dependencies, technologies, and future build pricing.

Phase 3 — Finalized Full Functionality

This phase often takes less time than Phase 2 as it likely focuses on production hardening and creating tools and SOPs to “easily replicate and modify” for many and various event-based experiences. This phase would also entail expanding, adjusting, focusing and/or polishing existing functionalities and iterative improvements based on Cloud-Native services and emerging Web3 technologies.

The scope during this phase will drive estimates for the duration, involved dependencies, technologies, and pricing. (It is highly likely that the total pricing for this phase will be less than the previous phases and will represent a well-defined iterative improvements roadmap as well as maintenance and support services.)