What Are Dynamic NFTs (dNFTs) And How To Create dNFTs?

What are Dynamic NFTs?

Dynamic NFTs, also known as dNFTs, is a blockchain tokens whose inherent properties can change in response to external conditions. The NFT’s metadata contains a record of the changes. Consider the case of tokenized real estate. If a dynamic NFT represents a house, the metadata, such as previous sales and maintenance history, will change depending on the circumstances. The varying conditions might also be caused by the passage of time or data from sources tracking actual data, like weathervanes or current sports scores.

These tokens are generating a lot of buzz in both the physical and digital worlds because they have the potential to advance NFT by enhancing its design possibilities. dNFTs smart contracts, which control the data, allow for the encoding of instructions that change the metadata.

How Does a Dynamic NFT Work?

Smart contracts can be used with dynamic NFTs to compute data both on and off the chain. Smart contracts analyze on-chain and off-chain data sources when users request an NFT to decide which is the best option for them. The generated response is displayed to the users.

Here is a step-by-step Dynamic NFTs mechanism:

  1. An NFT request is sent to smart contracts.
  2. When a request is made, a smart contract processes it.
  3. To process the outcomes, the contract issues a call for on-chain data.
  4. Results from the call for off-chain data are processed using oracle.
  5. Data from both on-chain and off-chain sources are evaluated.
  6. The smart contract then provides users with recommendations.

This indicates that smart contracts offer instructions for the dynamic NFTs to grow, update, and change over time. Smart contracts first determine whether or not the token is subject to change. If so, it uses off-chain and on-chain data to change the NFT’s metadata.

Also Read: What Are Generative Art NFTs? How Much Are They Worth?

Difference between Static and Dynamic NFTs

The fundamental definition of dynamic NFTs gives a credible impression of their importance in the quickly developing NFT industry. Dynamic NFTs and static NFTs are in competition with one another, which is another crucial point to remember. Depending on the use case, every non-fungible token type has some benefits and drawbacks.

Users might be able to determine whether the use cases for dynamic NFT art are reasonable in comparison to static NFTs by understanding the differences between the two types of NFTs. Will they not lose credibility? The distinctions between static and dynamic NFTs can be made using the following pointers.

Digital assets with persistent token data are essentially static NFTs. As a result, even though they limit flexibility, they can offer better assurance of security and trust. Dynamic NFTs, however, give you the option to alter the token metadata. Dynamic NFTs are more adaptable than static NFTs, but this flexibility comes at the risk of greater vulnerabilities. Consequently, use cases requiring frequent data changes are more suitable for dynamic NFTs.

Applications of Dynamic NFTs:

Numerous creative applications have been unlocked by dynamic NFTs. Following are some examples of dynamic NFT use cases:

  1. Gaming

Dynamic NFTs are widely used in gaming applications such as –

Characters in the game:

When a new in-game character appears on screen, the dynamic NFT’s metadata records its various traits. If this character grows and evolves, the metadata updates to reflect the changes.

Sports Fantasy:

Another possible application is the distribution of NFT based on performance among players. For example, if the owner is defeated in a battle, the NFT is automatically transferred to the victor.

Play to Earn Games:

P2E games have become extremely popular in recent years. Using this dynamic aspect of NFTs, it is necessary to develop distinctive in-game items like in-game money, power-ups, and virtual goods. Additionally, the NFT armor or weapon can be upgraded using the add-on-trait feature. When the NFT sword is frequently used in combat, for instance, its power may increase.

2. Sports

With the help of sports collectibles, sports can use dynamic NFT elements. Dynamic NFTs for Major League Baseball (MLB) was released by Candy Digital as digital collectibles. The dynamic NFTs are used on each player’s individual NFT collectible as their stats progress throughout the season.

Since the metadata would have been set in stone when the token was created, the stats of a player cannot be changed for static NFTs. For instance, a football player is represented by a dynamic NFT. Speed, strength, agility, assists, goal scores, and other data are included in the metadata of the dNFTs.

3. Art

Digital art is yet another potential dynamic NFT application. It changes or evolves as a result of changing conditions. In addition to constantly changing art displays, you can try out novel approaches to showcasing digital art.

As an example, think of a collection of dynamic NFT artworks that alter their colors or hues according to location, season, temperature, lunar position, or time of year.

4. Fundraising

The dynamic nature of such tokens can make NFT fundraising more appealing. For instance, Regenerative Resources Co., an ecosystem services provider, uses dynamic NFTs to raise money to protect mangroves.

Initially, a single frame from a short film was included in an NFT that was made public. With each subsequent sale of the film, additional frames were later added. Until the film is finished, the process continues.

5. Government

Theoretically, a government could issue passports by utilizing dynamic NFT elements that would continually update a person’s travel data. A person’s travel history is recorded in the blockchain, so no paperwork or stamps are needed. As blockchain makes the information verifiable and immutable, the likelihood of fraud is also reduced.

Also Read: Explained: What Are PFP NFTs And How Do They Work?

How to create Dynamic NFTs

Prior to users beginning to create their own dynamic NFTs, decide on your item, its variables, and the chain they wish to use. The user’s developer environment needs to be set up once they have their plan in place.

Steps involved in creating Dynamic NFTs

  1. Set up the ERC721 token
  2. Upload the NFT image links in the IPFS URIs
  3.  Complete a compile check
  4.   Make the NFT contract “Keepers Compatible”
  5.   Have the smart contract interact that will change the NFT based on your defined variables (in this case, market prices).
  6.  Test your dNFT to see if it is dynamically updating as expected.
  7.   Mint and deploy your dNFTs

Tools required for Dynamic NFTs

To get started, make sure users have the required tools:

  1. A free Alchemy account
  2. IDE
  3. Access to the dNFT tutorial’s Github repo
  4. IPFS companion
  5. A faucet and test net tokens

Also Read: What Is Gameta: How To Play Web3 Games On Gameta?

Examples of Dynamic NFTs

The NBA’s “Association” collection is one of the best examples of a dynamic NFT. The collection, which debuted in April 2022, includes 75 dynamic NFTs—one for each player on each of the 16 NBA playoff teams. The characteristics and accessories of the NFTs would alter as the playoffs went on, reflecting the player’s slam dunks, three-pointers, rebounds, blocks, and assists. Based on the team’s performance, the frame and background of these NFTs were also updated.

LaMelo Ball’s Gold Evolve NFT and Beeple’s Crossroad NFT are two other dynamic NFTs. Both of these NFTs modified their appearance in response to actual events.

Another example is Regenerative Resources (RRC). It is an ecosystem services company whose objective is to transform damaged land into marine environments that can generate income. Five Short Film NFTs produced by well-known artists were made available, according to RRC. With the proceeds from the sales, RRC will fund its ongoing projects, which will result in the planting and growth of 100 million mangroves. One frame will appear first in each Short Film NFT. In order for the NFT holder to see the entire short film, it is shown frame by frame when an NFT is purchased or sold.

How are oracles used in dNFTs?

Dynamic features may also be used, in addition to metadata updates. dNFTs, for instance, can be created when specific events occur, such as when a hidden location in an augmented reality app is discovered. dNFTs might also have “hidden features” that are only revealed when a user interacts with them. NFTs are a type of token that can be programmed in an infinite number of ways because they are completely unique and have a variety of configuration options.

However, in order for users who are not tech-savvy to “see” the changes, the majority of dNFTs must incorporate some sort of metadata change. How to obtain the information and features required to create a secure, equitable, and automated dNFT process is a component of dNFT design that is frequently overlooked.

Multiple ways exist for external variables to modify dNFT metadata, both on and off the chain. On the other hand, data outside of the chain cannot be accessed or processed by blockchains. Oracles circumvent these issues by providing a range of off-chain computing and data services that can be used to initiate dNFT upgrades. The bridge that connects the two worlds is the oracle. As the dNFT ecosystem develops and NFTs become more integrated with the outside world, it makes it possible to create dNFT processes that are automated, decentralized, and even “fun”.

Benefits of Dynamic NFTs

The following are some notable advantages that users of dynamic NFTs can explore.

  1. Improved Engagement
  2. Integrated Experiences
  3. Greater Loyalty
  4. Adjustable Monetization
  5. Innovation’s Power


In the world of technology, particularly in the Web3 community, non-fungible tokens have taken center stage. Dynamic NFT has drawn a lot of attention amidst the hype surrounding potential applications and technological advancements due to its size to alter its fundamental characteristics in response to outside information. Although dNFTs are still a novel idea, it has the potential to revolutionize the NFT industry by providing a wide variety of use cases. Also, enhanced web3 sphere capacity. Due to the success of these living tokens, dNFTs may explore more innovations and develop amazing new use cases.

Also Read: The Sandbox Game: Discover SAND Metaverse; Play and Earn NFT Rewards