The NFTs you value probably have zero utility as staking and burning don’t matter – CryptoMode
There are many opinions on whether non-fungible tokens are useful. Some will eagerly point out that most projects do, but things are a little different in the real world. Finding that balance between “utility” and “gamification” remains difficult for most NFTs.
NFT Staking adds nothing
Some people will eagerly point out how issuing non-fungible tokens benefits these assets. It does in the sense of “being able to do something about it”. However, users send their NFTs to another address as if they initiated a network transfer. So it takes the NFT out of circulation for a while, but it’s not “useful” in the strict sense.
Betting altcoins doesn’t benefit them either. It creates artificially skewed demand and supply unless the altcoin has an actual use, such as paying transaction fees or agricultural defi returns. NFTs have none of these characteristics, although one can earn rewards using this method. However, these rewards are another problem and prevent NFTs from achieving utility.
Staking rewards for NFTs is often another symbol. This token will give users “exclusive access” to certain features or services. Also, they can use these new tokens in the newly created ecosystem no one asked for.
More importantly, few outsiders will show interest in the “tool”, which generates a more negative perception of the NFT collection. Creating artificial utility is not the answer for NFTs, but few creators seem to realize that.
Burning NFTs does not equal tools
Another popular trend in NFT circles is the concept of “burning NFTs”. It is another artificial way to skew demand and supply for collections. Few projects need more than 2000 NFTs, but they were issued for 7000+ pieces.
As such, developers use the clever method of allowing users to “burn NFTs” to reduce supply. In return, users receive a random token with no demand or an entirely new NFT with different properties.
It is common to see NFT burns gain traction among the so-called “profile image collections”. These NFTs have zero utility but are about status and promotion of collections via avatars on social media.
The “burn” aspect is added later to make the collection seem useful. Burning mechanisms will not benefit an NFT collection; it is only in the pockets of those who manipulate the market.
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