Dynamic NFTs in 2024: Definition, Top 6 Use Cases & Exampes

Dynamic NFTs are the new trend in the NFT world. They are an improvement over static NFTs because they are more flexible and expand the possible use cases of NFTs. In this article, we:

• Explore what dynamic NFTs are,
• How are they different from static NFTs,
• And some use cases and examples.

What are dynamic NFTs?

Dynamic NFTs are NFTs that can change their characteristics when certain conditions are met.

Each NFT has certain metadata that describes its characteristics. The metadata of an NFT includes general and specific fields that are different for each NFT collection:

• General fields are fields like names and descriptions.
• Specific fields can be the shape of the mouth, outfit, level of stamina, etc.

Figure 1. Metadata example of an NFT

Source: OpenSea & IPFS 

In static NFTs, metadata does not change. Dynamic NFTs allow metadata to change using smart contracts. Dynamic NFTs change based on the conditions in their smart contract, which are configured at the of minting. Smart contracts can leverage oracles to access off-chain data sources such as web API and IoT data to make changes to the NFTs. 

Figure 2. A dynamic NFT that changes based on the weather of Boston, New York

Source: Chain Link

Top 6 use cases and examples of Dynamic NFTs

1. Gaming 

1.1. Play-to-earn 

Dynamic NFTs can have a significant impact on P2E games through the use of the Chainlink Verifiable Randomness Function (VFR). VFR allows the random distribution of traits and in-game items, which determines the rarity of the said factor. VFR is verifiable, which means random results are verifiable on the blockchain, and no one can sway the randomness to their favor. For example, Dream Quest is an NFT-based P2E game that has implemented VFR to ensure a fair and random distribution of attributes to its NFTs.

Figure 3. VFR in Dream-Quest Game

Source: Dream Quest

1.2. Fantasy sports 

Fantasy sports games can change the characteristics of an athlete’s NFT based on their real-life performance. 

Figure 4. Dynamic NFTs in fantasy sports

Source: Chain Link 

2. Collectibles 

NFT collectibles can change how they look or add specific traits based on real-life events. For example, NBA player LaMelo has released a set of dynamic NFTs that level up and benefit its holders based on LaMelo’s in-game performance. When he won the rookie of the year for the 2020-2021 NBA season, the NFT changed color to gold, and the planet Saturn that he was holding transformed into the sun.

Figure 5. LaMelo ball gold type NFT

Source: Chain Link

3. Art

NFT arts can be taken to the next level by using dynamic NFTs. For example:

3.1. Organic Growth Crystal Reef

Organic Growth Crystal Reef are dynamic NFTs that evolved over time and are based on transactions. In a 3-month time span set by the developers, crystals would grow their traits and change how they look based on time and transaction. They can be used in augmented reality, and the developers plan to make physical replicas of crystals and display them in museums. 

Figure 6. The evolution of an OG: Crystal Reef NFT

Source: Organic Growth: Crystal Reef

3.2. Botanica

Botanica is an in-development project that plans to release dynamic NFTs of plants that grow over time and change based on the seasons. 

4. Fundraising 

NFTs have been used for fundraising before, but dynamic NFTs can make this concept more attractive. For example, Regenerative Resources Co (RRC) has announced the release of short films in a dynamic NFT format that initially consists of a single frame, but additional frames are added whenever they are resold. This process continues until the film is complete. The funds collected by RRC will be used for planting mangroves.

5. Passport 

Governments can theoretically issue passports in the form of dynamic NFTs that update information as a person travels. There will be no need for a stamp or additional paperwork since the information is stored in the blockchain. It will also reduce the possibility of fraud as the blockchain makes them immutable and verifiable.

Further reading 

• 7 Factors To Consider Before Minting NFTs
• 8 Factors To Consider Before buying NFTs