NFTs as a reward is the newest issue that is polarizing people in the workplace. While some passionately advocate its benefits others vehemently oppose it as there is no telling what its long-term value will be.
NFT stands for non-fungible tokens that are unique digital assets whose ownership is tracked on a blockchain. As NFTs are stored on a blockchain, it is impossible to replicate. They tend to have unique identification codes which adds to their security. Some experts believe that NFT rewards will eventually change the future of investing while some are waiting for the bubble to pop.
NFT rewards provide a new way to directly access and reward customers, and help build a community.
Who can use NFTs?
NFTs can be used by anyone. Others cannot replicate or tamper with the original without the owner’s explicit permission. Although NFTs have been around since 2014, their popularity skyrocketed during the pandemic. In 2021, they sold for thousands of dollars, if not millions.
Brands can use NFTs as rewards to increase engagement and reward loyal customers. NFT loyalty programs can also help drive member acquisition. NFTs as a reward will be unique and exclusive by virtue of their character. This feature helps boost employee morale and help them feel appreciated.
To be successful, NFT rewards must have some intrinsic value for the consumer. Brands must figure out a way to leverage longevity and relevancy. They must strike the right balance to ensure that NFT rewards are sentimental and monetizable.
On the other hand, the sustainability of blockchain technologies continues to be a major cause of concern. Companies with energy-efficient goals struggle to justify their position in such cases. A majority of blockchains are known for their high energy consumption and carbon emissions.
Digital assets and newer technologies appeal to the younger, tech-savvy generation. Offering NFTs as a reward can help attract top talent who are well aware of the pros and cons of this technology. NFT rewards can, thus, be extremely rewarding for both the employer and the employee.
Germany-based Nuri, a blockchain banking service, previously known as Bitwala, rewarded its employees with NFTs to celebrate their relaunch and show their appreciation. Over time, NFTs can evolve into valuable collectibles.
Some industry experts, however, beg to differ. Amy Spluring, Founder and CEO of Compt, a Boston-based stipends platform that gives employees the freedom and flexibility to choose the lifestyle perks, is one such person. “With Compt, we’ve seen perk stipend utilization span a variety of categories, but many people opt to use their allotments to support their health and wellness”, she says. “An NFT can’t do either of these things. Sure, they might be nice to have for the select C-Suite folks, but they aren’t helpful for the majority of people for whom employee perks are designed. NFTs as a “reward” is not very inclusive; actually, it’s exclusive. If there’s one thing we’ve learned from the “Great Migration” it’s that people are looking to be treated fairly. NFTs as a benefit is inherently not fair.”
What programs are used to create NFT art?
To launch your own NFT, you need to access NFT software to create the NFT art piece. It can be a picture, artwork, music, or video file. Tweets and memes have also been auctioned as NFTs.
Some of the top NFT creator software are NFT Creator, Photoshop, Krita, Illustrator, and SketchAr, amongst many others.
The most popular NFTs were sold for millions of dollars. Even today, companies are looking for ways to offer customized NFTs that can eventually become prized collectibles. Legendary artist Trevor Andrew, aka Gucci Ghost, sold out his NFT collection called “Nifty Ghost Collection” in under 12 seconds. Reports say that it sold for a price range between $250 to $5,100. Since then, he has released multiple NFTs that went for thousands of dollars. Another notable piece, a gold toilet called “Shit is Gold” lived up to its name, fetching its creator nothing less than $108,888. As of 2021, Gucci Ghost has sold over 1,300 NFTs.
The cost of creating an NFT can vary depending on what you choose. You require digital tokens to start the creation process, which is known as minting. Furthermore, to mint NFTs, you need to invest in smart contracts using cryptocurrency. Depending on your vision, creating an NFT might cost you as little as $1 or thousands of dollars.