Overview

| VOK DAMS

NFTs - A more sustainable option
to conventional giveaways

Digital technologies can contribute to sustainable development through alternative forms of consumption. This especially applies to the latest craze: NFTs or non-fungible tokens, which happens to be the topic of our latest white paper "Boost your Live-Marketing with NFTs"

kryptotier-auktion-wwf-kommentar

(Image: Freehand/WWF )

What are NFTs and where does the energy use come from?

With NFTs it is for the first time actually possible to own digital assets. NFTs are audio, image or video files in the blockchains and a form of cryptocurrencies. NFTs are characterized by their uniqueness. No two NFTs are alike, and it is this uniqueness and scarcity that defines their value. Therefore, NFTs primarily appeal to fans and collectors. They create the opportunity to let customers participate in the brand in a completely new way.

Although blockchains and therefore NFTs can be quite energy intensive, replacing physical – usually single or limited use give-aways by NFTs can be more sustainable. NFTs as give-way means less energy for production, shipping and recycling. Next to that, some of the newer blockchains for NFTs, such as Polygon, have much lower power requirements. The World Wildlife Fund, for example, uses Polygon for its Non-Fungible Animals

 

In terms of ecological and economic aspects, NFTs can be a meaningful alternative to physical give-aways or other instruments for increasing brand awareness. Like everything, they should be of course used in the right places and responsibly. But not using NFTs for marketing would be a missed opportunity.

 

Please find the full version of our VOK DAMS whitepaper „Boost your Live-Marketing with NFTs” here.