NFTs (Non-Fungible Tokens) are all the rage right now. Odds are that you’ve probably heard of NFTs whether it be from word of mouth or scrolling on social media.
For animators, this could be a huge step in improving issues they have with maintaining ownership of their animations and gaining royalties from sales.
In a previous blog post, we covered how to make animated NFT art, which breaks down what NFTs are, as well as their advantages and disadvantages.
Although NFTs have their fair share of controversies that should be considered, animated NFTs are a huge breakthrough for the animation industry where pieces are shared digitally.
In this blog post, we cover the different ways in which NFT animations benefit animators today.
The Benefits Of Animated NFTs
The cryptocurrency and digital art worlds are expanding every day, with NFTs playing a huge role in this growth.
This new trend gives animators the opportunity to sell their animated NFTs online while maintaining the intellectual property and a percentage of secondary sales through royalties.
It’s important to keep in mind that there are downsides to NFTs, such as their speculative market or their impact on the environment. While the cons should be acknowledged, many are still hopeful that animated NFTs can do more good for the art industry than harm.
1) Protects Animators and Their Animations
You might be wondering why anyone would buy your animated NFT art when it could simply be downloaded.
The reason for this is that the copies have no financial or monetary value, but when somebody purchases your animated NFT art, they will own the version that verifies ownership of the original artwork.
When it comes to crypto art, you will get a special code attached to your animated NFT which verifies ownership and gives them a distinct value that makes them unique.
This doesn’t stop people from recreating your animations, but those copies will not hold the same value as the original piece.
Just like in the traditional art world, owning the original piece still holds value.
2) NFTs Can Be Traded Securely and Transparently
NFTs function as fixed digital signatures, delivering unmatched confidence to collectors. This confidence contributes to the future legacy of art.
Digital artworks stored on the blockchain are not affected by censorship and physical decay, but they must still be stored correctly.
Thanks to Blockchain technology, assets of high value can be moved securely and publicly.
3) Receiving Royalties for Your Animated NFTs
Animators typically only get paid when they first sell a piece without profiting from their work once it’s traded on the secondary market.
Since art only really gains its true value long after it’s been created, the lack of royalties has left plenty of animators with a mere fraction of what their work is worth.
NFTs eliminate this problem as well as the issue where intermediaries take a chunk of revenue from creators in the traditional art industry.
With NFT technology, there’s a feature where royalties can be hard-coded into the NFT itself. This means that the original animator will be paid a percentage of the proceeds every time the NFT is sold or resold.
This is beneficial for animators since your work may become popular and increase in value, and you’ll still get paid in royalties even though you have sold it.
4) Collaborating For The Future
The integration of the art and blockchain communities is beneficial for both parties. Art curators, museums, and creators can enrich content and bring high-quality art into the blockchain.
Blockchain communities are seeing NFT animations beyond the hype as a way to develop new ownership, funding, and grants.
Therefore, individuals who will leverage the benefits of both environments will shape the future of the animation and NFT industries.
Art collector, Pablo Rodriguez-Fraile, who is also the seller of Beeple’s “Everydays - The First 5000 Days” that sold for $69 million, is determined that NFTs aren’t just a hyped-up craze. He mentions that NFTs are “a catalyst for a generation”.
Cryptopunks is one of the most popular animated NFT projects this year. The collectibles were limited to 10,000 Punks, with the most common being Human Punks. Other species of Punks include 88 Zombie Punks, 24 Ape Punks, and 9 Alien Punks which sold for over $8 million dollars on auction.
Bored Ape Yacht Club is another popular animated NFT that you may have seen used as online avatars. This project features animated apes with different attributes and rarities, with the cheapest Apes costing about 45 ETH ($150,000).
It’s likely that these notable projects will survive long-term, but it’s clear that there’s a lot of hype around animated NFTs at the moment. Though the future of animated NFTs looks promising, you should do your own research before getting involved as an animator.
5) NFT E-Commerce
GIF via GIPHY
Uffizi Gallery recently created and sold a digital copy of Michaelangelo’s “Doni Todo” for $170,000 and plans to release other prints from the collection.
Due to the current trend of how brands see NFTs as a tool, Sophia Schteiner predicts the emergence of a museum e-commerce industry in the future.
Limited edition digital collectibles produced by a museum could be traded or redeemed for actual physical prints. The opportunities for animators are endless!
Many believe that NFTs are the future of e-commerce due to their rise in the cryptocurrency world and their user-friendly features. People from various industries, including the animation industry, have turned to buying and selling essential commodities online post-pandemic.
As a result, many business owners with e-commerce platforms have been trying to implement NFTs to increase their value and remove third parties. This provides limitless opportunities for animators to create NFT art, sell it online, and create a steady revenue flow for their work.
According to Forbes, NFTs could make it easier for users to access the supply chain history of the products they purchase, as well as "completely trace the transaction lifecycle."
5 Benefits of Animated NFTs for Animators
- Protects Animators and Their Animations:
Digital animators can rest assured that the ownership and authenticity of their NFT animations are confirmed. Evidence of creation and ownership are attached to these unique, digital assets, allowing these animated NFTs to be traded securely and transparently.
- NFTs Can Be Traded Securely and Transparently:
Blockchain technology allows high-value assets to be moved in a secure and transparent manner.
- Receiving Royalties for Your Animated NFTs:
NFT technology allows a feature to be enabled where royalties can be hard-coded into the NFT itself. This eliminates the problem of intermediaries taking a chunk of revenue from creators in the traditional art industry.
- Collaborating For The Future:
Both art and blockchain communities benefit from the integration. Individuals who will leverage the benefits of both environments will shape the future of the animation and NFT industries.
- E-Commerce for Your Animated NFTs:
Since brands see NFTs as a tool, it is predicted that there will be an emergence of a museum e-commerce industry in the future. NFTs allow users to completely trace the transaction lifecycle when considering a purchase.