Value comes in many forms. Depending on one’s own worldview it may be easier to overvalue or disproportionately discount the value of something. Nonetheless value represents an incalculable tangle of variables that on a fundamental level will always be subjective.

But… I’m a creator. I’m also a businessperson. I want to identify those factors which increase value, so that I can increase the value of my art, products, and services. While I can never control the way anybody feels, I can control the value of what I create, which will then by extension shape it’s perception in the marketplace.

This complex and somewhat indecipherable formulation of value takes on a new layer of meaning in the NFT market. How is that Beeple’s NFT masterwork Everydays: The First 5000 Days can sell for over $69,000,000? Some people will say that “it’s just a jpeg.” But they’re proven wrong by the fact the marketplace determined that it was worth $69,000,000.

That is simply a fact. Maybe it’s overvalued. Maybe it’d be better to spend $69,000,000 buying food and building factories toward strictly utilitarian ends. But, that answer doesn’t feel satisfying. It shouldn’t feel satisfying. Part of what it is to be human is to be at times so enraptured by our legends and our aesthetic experiences that money becomes nothing by comparison.

There is a lot of artistic profundity wrapped up in Everydays. Whether it’s an NFT or a fabled renaissance oil painting, it is rare to see any artwork rise to such heights of market value. Still, there are aspects of these works that give them meaning in the context of human life and by extension our distinctly anthropocentric human valuations of capital.

The following 10 attributes are a boon for any creative who is looking to build an NFT project as a part of their ecosystem. Really these principles apply to any creative endeavor. All too many shills have entered the NFT space while neglecting the fundamental economics of art. It’s time to apply these simple and timeless truths to building a new generation of projects that matter.

Economists and buzzword enthusiasts everywhere may now rejoice. We are talking about utility. Before diving into what utility really means in the context of NFT projects, let’s explore the standard conceptualization of utility in economics. The most famous model of utility taught to economics students the world over identifies utility as the intrinsic value of any of the three basic resources (land, labor, & capital). When it comes to artwork and NFTs, we are clearly talking about a form of capital. This means the question of how much intrinsic value an NFT has is determined by its utility.

Utility can mean many different things to different people. Especially when we get into the intangibles. In the NFT community, “utility” often refers to the cool things the NFT gives the owner the ability to do. That can mean the ability to transfer the NFT, be a part of exclusive communities for that project, and even access to private events. Even further though, I believe the aesthetic significance we place on a work like Beeple’s Everydays is also a form of utility. It is a form of utility that resonates with the human soul and adds a layer of significance to everyday existence.

I think these more subtle and humanitarian (even spiritual) aspects of utility in art tend to be lost on the more pragmatic outlook of many economists. When it comes to NFT, we are really treading a fine line between the “laws” of economics and the more ethereal, metaphysical experience of art. The rest of this list will look at how to maximize both aspects of that utility.

When we look at projects like Beeple’s Everydays it’s easy to grasp that this is just how the art market is. It’s not all that different from a Picasso or a Banksy that has achieved some astronomical price.

But what about when cartoon monkeys sell for hundreds of thousands of dollars? Projects like Cryptopunks and Bored Ape Yacht Club currently sell at insane premiums. What keeps these projects selling at such a high premium is the community of celebrities and influencers that have formed around them. There is an incredible amount of exclusivity built into Bored Ape Yacht Club. Really it seems like a secret society.

It’s worth stating that the utility of an object changes over time. The title of “lord” is not nearly so valuable in modern Britain as it was in 15th century Britain. Communities wax and wane. Still, this is an important part of the utility equation. In many ways, I see community building as the core activity of marketing.

Even in the case of Beeple’s Everydays, the reason it attracted the attention of such wealthy art collectors is because of the community and reputation Beeple built through the consistent hard work of putting out high quality art for 5,000 days straight. Everydays is a testament to the potential of human tenacity. That tenacity built a community willing to pay $69,000,000.

For the creative soul who is looking to build an NFT project today, I believe community is the number one factor which will make or break the project. This is why I believe NFT is such a natural fit for musicians and influencers. It becomes a powerful vehicle for connecting and adding value to those already fiercely loyal communities.

Okay, I’ll be honest this is just “community” stated in different words. What I mean by “multiplatform ecosystem” is cultivating a vibrant community across multiple different channels. In all the hype around decentralization, Web 3.0, and NFT, I’ve seen many enthusiasts unfortunately neglect the importance of actually connecting with people and instead focus only on concepts.

Platforms are constantly changing and there is a tendency to become emotionally attached (or alternatively antipathetic) toward various platforms. If in the desire to embrace NFT and Web 3.0, you end up neglecting the community that is a part of your creative work by abandoning the platforms they live on, it will be a net loss. I see many musicians who are so determined to cut out Spotify preemptively that they end up losing the vast majority of potential fans.

I’m the biggest critic of Spotify and Web 2.0 there is. But, I also try to be a fair critic. The fact of the matter is that if you are a creator, influencer, or entrepreneur it is in your best interest to create a meaningful experience for your community on multiple platforms.

My article 10 Platforms to Build Your Community On (Right Now!) goes over how to best establish your multiplatform ecosystem footprint. The creators who have the best skill in creating communities wherever they are by leveraging the power of multiplatform ecosystems will also create the best NFT communities.

I sometimes get myself into a lot of trouble in the crypto community by talking about what is really an unfortunate but true reality. The average consumer doesn’t want to learn about the nuanced differences between Avalanche, Ethereum, Stellar, or the latest shitcoin.

Honestly, there is currently no standard for what is the “right” blockchain. In reality, there is a high likelihood some new standard totally wipes the floor with every “standard” we currently have for blockchains. Ethereum, for example, has mass recognition right now. It is also absurdly expensive just to make transactions on that network. For many independent creators dipping their toes into NFT, it makes ZERO sense to build that project on Ethereum. Probably because “starving artists” don’t have $500,000 to spend minting a new line of NFTs. This means many other cheaper, albeit less standardized, cryptocurrencies such as Stellar Lumens have filled the void.

Beyond even the implications of fees or popularity, when it comes to bringing NFT artwork, collectibles, and properties into the Metaverse, will these blockchains be supported? Knowing Meta (Facebook), what are the odds that they will opt to build an open blockchain system where even the more popular blockchain based NFTs are supported? I think it’s much more likely they build a closed system where only specialized “Meta” or “Libra” based NFTs are supported. This of course remains to be seen, but it all throws a monkey wrench into the equation for independent creators who are just looking to build a NFT project for their communities.

My advice is to pick a blockchain that is currently easily accessible and affordable for your specific community. As long as you keep your community first and are fully committed to your project, they will understand should you even need to move to a new blockchain or create a system for multi-chain compatibility.

The need to have a long term focus should come natural to any artist who has spent years or even decades continuing to focus on their craft against all odds. In order to see your NFT project through the years I believe it is all important to focus on the people just as much as the art.

What are you doing to make your NFT project valuable for collectors not just 12 months from now, but also 12 years from now? Of course so much is bound to change over decades, but you alone as the creator must bear the weight of making the experience memorable, meaningful, and worthwhile for your collectors.

I don’t really want to rank the attributes on this list. But, if I’m being honest, liquidity falls near the bottom of the list. If you focus on everything else, liquidity will come naturally. If you focus too much on liquidity, the project will suffer.

Simply put, liquidity represents the tangible return on investment people can expect when investing your NFTs. For creators, this really isn’t so important as making it worthwhile to hold the NFT for the utility it provides. Still, by having sufficient demand to generate greater liquidity for a project, collectors will instinctively identify the project as having a higher utility.

The only way to increase the demand (and thus liquidity) for your project is by enhancing the community and overall utility surrounding the project. But, remember, those who obsess too much over liquidity in this space deserve their reputation as “shills.”

This is huge. Beyond the community around projects like Bored Ape Yacht Club, some projects like this have also developed a unique intellectual property that is recognizable to the public. This IP exists both on the blockchain and off the blockchain. IPs such as Pokemon, Disney, and Magic: The Gathering have inherent value in any form they are represented.

A strong intellectual property is composed of many factors. Some of the important factors that immediately come to mind are recognition, popularity, visual artistry, and lasting legacy. While the most recognizable intellectual properties can range even into doing billions a year in adaptation and merchandising, literally anyone can create an intellectual property.

All you have to do to build an intellectual property is use your mind and transmute that imaginative creation into a communicable medium. IP is a rare form of capital that can be created entirely within your mind. In fact, every single one of the greatest inventions in human history all began in the eye of the mind.

For any creator looking to bring NFT into their community, it is worth devoting considerable mental energy toward creating a strong IP to build collectible tokens around.

Community first. Nothing more needs to be said than that.

Admittedly, I’m not a great visual artist. I am solid with design, but I’m by no means a professionally trained and practiced visual artist. Often, I will commission other artists to do work for my own personal branding. Still, I also take a stab at it myself as often as possible and continue to develop that skill.

Wherever you are at with your visual arts abilities, it is important to be transparent with yourself. Recognize your strengths and flaws. NFT is a very visual medium at this juncture. The visual styling of your NFTs will be one of the biggest factors in determining the value of your NFTs. Whether you are a talented visual artist or you can admit you aren’t, focus on the a e s t h e t i c.

I’ve done as much as I can in this article to boil down what is a very experiential and intuitive process into an objective model. Armed with this knowledge, you must find the vision to create within yourself.

In order to succeed as a creator you must be willing to take risks. You must be willing to trust your intuition with full knowledge that not everything works out the way your expect every time. But, if you continue to develop your creative faculty through action and iteration, you will greatly increase your odds of success.

Continue to feed your mind with knowledge, art, and perspective. The more you can synthesize, the more you will also develop your own original creative sensibilities. When the vision comes, you will be ready to seize it.

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