In the world of innovation, especially within the Web3 emerging, non-fungible tokens (NFTs) have taken center stage. However, there’s more! Dynamic NFTs have joined the party, and they’re the true shape-shifters of the NFT world. They’re like actors who can transform into any character just by putting on a different costume. With dynamic NFTs, their core characteristics can change faster than a chameleon changes color, all thanks to external information.

Now, you might be wondering, where are these magical dNFTs applied? Whether you need an NFT that adapts to market conditions or one that reacts to real-time data, dynamic NFTs have got your back. Later, we’ll discuss about the advantages and real-life dynamic NFT examples. So, buckle up and get ready to dive into the world of dNFTs.

Overview of Dynamic NFTs

Artists, creators, collectors, and users alike, listen up. Dynamic NFTs are your golden ticket to a digital wonderland. Forget about creating something that just sits there, gathering virtual dust. With dynamic NFTs, you can create a digital masterpiece that changes, morphs and evolves right before your eyes. It is like a treasure trove of surprises waiting to be discovered.


Dynamic Non-Fungible Tokens are the rock stars of the digital realm. Unlike their static NFT cousins, dynamic NFTs have the capability to adapt and transform based on external conditions. This mind-boggling functionality is built right into the code of the token.  While static NFTs usually follow the ERC-721 token standard, Dynamic NFTs, often employing the ERC-1155 standard, are able to demonstrate their unique characteristics. They’re halfway interchangeable and can undergo fantastic makeovers whenever needed.

Dynamic NFTs offer creators the unique ability to update and change the characteristics of their NFTs during the minting process. How? Well, they’ve enlisted the help of smart contracts that fetch data from external sources through oracles. These oracles provide data from various sources like the Internet of Things and web APIs. During the minting process, the NFT undergoes evaluation using the provided data sources, which are utilized to encode and incorporate any necessary changes. Once the NFT is created, the smart contract can continue gathering data from oracles to update and modify the NFT’s characteristics, ensuring it remains as dynamic and up-to-date as your constantly changing mood swings.


Dynamic NFTs are the wild cousins of those boring old static NFTs. Here are some of the magical benefits they bring to the table:

  • Editable

Dynamic NFTs save users from the headache of reissuing or creating new NFTs. This brings a sigh of relief to many platforms, particularly those that rely on external conditions or have connections to our real lives. The beauty of it all is that whenever something changes, users don’t have to go through the hassle of minting a brand-new NFT with updated parameters. Why? Well, it’s all thanks to the magical power of metadata editing.

  • Programmable

Dynamic NFTs are programmable, allowing creators to set rules for their behavior. This level of control and automation opens up exciting possibilities across industries. As players advance in the game, a dynamic NFT has the potential to depict a character or item that undergoes an evolutionary journey, acquiring unique abilities along the way.

  • Interactive

Dynamic NFTs are all about interactivity. They bring a high level of flexibility and the power to change, making them incredibly engaging and captivating for collectors and audiences alike. With these dynamic tokens, creative expression knows no bounds, as they open up a whole new world of possibilities. It’s like injecting a dose of excitement and intrigue into the digital realm, leaving everyone eager to explore and experience the endless potential they offer.

  • Cross-Platform

Dynamic NFTs have a broad range of applications beyond digital art, including gaming, social networks, and more. Their versatility unlocks fresh opportunities for developers and creators to innovate and deliver immersive experiences to users.

  • Sustainable Income

Dynamic NFTs create additional revenue streams for artists by offering a thrilling long-term source of income. Creators can earn royalties based on the continuous utilization or engagement with their NFTs.

Use Cases of Dynamic NFTs

Dynamic NFTs have unleashed a multitude of thrilling applications across diverse industries, expanding the horizons of creativity, interactivity, and innovation. Here are a few examples of dynamic NFT use cases:

Digital Collectibles

Dynamic NFTs have transformed digital collectibles, elevating their appeal and significance. By being adaptable, progressive, and responsive to external triggers, dynamic NFTs provide collectors with an exceptional and captivating experience. A notable application lies in virtual collectible card games, where dynamic NFTs represent cards that gain fresh abilities or attributes through gameplay or player accomplishments.

Dynamic collectibles foster a sense of connection and affinity, thereby increasing engagement and helping the community of collectors to flourish.


Dynamic NFTs are widely used in virtual Metaverse worlds and blockchain games. They improve the gaming experience by enabling character progression and level advancement. The ERC-1155 token standard is commonly employed for gaming NFTs, making dynamic NFTs prevalent in blockchain games. As players evolve, their character’s appearance and stats dynamically update in the associated NFT.

The notion of game progress is vital for engaging and retaining players, with dynamic NFTs playing a supporting role. They facilitate the development of games with nonlinear narratives or cooperative modes that rely on external data.

Digital Art 

Dynamic NFTs empower digital artists to incorporate real-time data, making their crypto art dynamic and exceptionally distinct. For instance, there are art pieces in the form of dynamic NFTs that morph in appearance according to the prevailing weather or season.

Dynamic NFT art, by emulating physical art installations and exhibitions, can transcend boundaries and captivate art enthusiasts. In this scenario, dynamic NFTs can evolve based on the owner’s interactions, enticing visitors to explore digital art exhibitions.

Decentralized Finance (DeFi)

Dynamic NFTs have discovered exciting applications in the world of decentralized finance (DeFi), unlocking new avenues for financial innovation and involvement. One such use case involves collateralized loans and lending protocols. By using dynamic NFTs as collateral, their value becomes linked to the underlying assets or properties they represent. This allows users to access loans while retaining ownership of their cherished collectibles.

Moreover, dynamic NFTs can be seamlessly integrated into yield farming and liquidity mining platforms. Users have the opportunity to stake or lock their NFTs, earning rewards and participating in governance processes. Ultimately, dynamic NFTs in DeFi enhance liquidity, flexibility, and user participation, bridging the gap between blockchain collectibles and decentralized financial systems.

Examples of Dynamic NFTs

  • CryptoKitties

CryptoKitties offers a prime example of dynamic NFTs in action. As one of the earliest and most popular projects in the non-fungible token space, it introduced dynamic features that set it apart.

What makes these NFTs dynamic is that each cat possesses distinct attributes, including genetic traits, characteristics, and appearances. However, the dynamism of CryptoKitties` NFTs goes beyond visual aesthetics. The breeding process and genetic algorithms create a living ecosystem where users engage in breeding and trading, aiming to generate value and obtain rare combinations of traits.

Dynamic NFTs: A New Era of Tokenization | by Chain | Apr, 2023 | Medium

CryptoKitties served as a pivotal proof of concept, showcasing how digital assets’ properties can change and evolve based on predefined rules and user interactions. It paved the way for further exploration and adoption of dynamic NFTs across different industries and applications.
Credit: Cryptokitties

  • Decentraland 

Within Decentraland, users can create and showcase dynamic NFTs as part of their virtual experiences. These dynamic NFTs can represent various assets such as interactive artworks, characters, items, or game elements that can change, evolve, or respond to user interactions or external triggers. The dynamic nature of these NFTs adds a layer of interactivity, engagement, and personalization to the virtual world of Decentraland.

Xmas Party revelers sporting wearable NFTs.

Creators in Decentraland have the ability to script and program the behavior and attributes of their dynamic NFTs using the platform’s development tools and scripting language. This allows for the implementation of dynamic functionalities and rules for how the NFTs behave and interact with users and the virtual environment.
Credit: Shibu/Decentraland

  • Gods Unchained

Gods Unchained is another notable example of a project that incorporates dynamic NFTs into its gameplay and ecosystem. The dynamic NFTs in Gods Unchained create an engaging and strategic gameplay experience. Players can strategize and build their decks by combining and leveling up cards to create powerful combinations and strategies.

Gods unchained : Make money trading collectible cards

Overall, Gods Unchained showcases the potential of dynamic NFTs within the gaming industry, providing an immersive and strategic experience where players can own and evolve their digital assets, resulting in a dynamic and competitive gameplay environment.
Credit: Gods Unchained

  • Axie Infinity

Axie Infinity is a popular blockchain-based game that features dynamic NFTs within its gameplay and ecosystem. What makes Axie Infinity unique is the dynamic and evolving nature of these NFTs. Axies possess distinct characteristics, attributes, and abilities that can be influenced by their genetic makeup and the experiences they gain through battles and adventures. 

Axie Infinity - Battle, Collect, and Trade Collectible NFT Creatures

In summary, Axie Infinity showcases the utilization of dynamic NFTs in a play-to-earn game, where players can collect, breed, battle, and trade Axies with evolving attributes. It has gained significant popularity for its innovative gameplay mechanics and the potential for players to earn real-world value through their engagement with dynamic NFTs.
Axie Infinity

Future Potential

With the arrival of dynamic NFTs, the digital asset industry has been flipping upside down like a circus acrobat on a unicycle. Dynamic NFTs can morph and evolve over time, providing a level of interactivity and engagement beyond that of traditional non-fungible tokens. From whisking you away to whimsical game worlds to turning art collectors into virtual treasure hunters, dynamic NFTs have already proven they’re the life of the digital party. They offer a wide range of possibilities and have opened up new avenues for creativity and exploration:

  1. By incorporating dynamic NFTs into games, characters have the fantastic ability to level up and develop alongside the player’s journey. It’s like witnessing a captivating metamorphosis, where these digital personas transform and flourish with each step forward.
  2. Dynamic NFTs have the fascinating ability to integrate real-time data from external sources, whether it’s sports updates, weather conditions, or even the pulse of financial markets. This ingenious feature allows NFTs to mirror real-world events and conditions, resulting in an ecosystem that’s as dynamic and responsive as a cat chasing a laser pointer.
  3. Dynamic NFTs unlock a world of personalized and customizable cryptocurrency collectibles. Imagine owning NFTs that not only cater to your preferences but also respond to external factors like a chameleon changing colors.

These examples only scratch the surface of the vast potential that dynamic NFTs hold for the future. As technology advances further, we can anticipate a multitude of groundbreaking use cases and applications that will unlock exciting opportunities for creators, businesses, and users alike.


Dynamic NFTs are truly cool because your artworks are no longer just static data, but a living entity that changes over time. Although dNFT is still a new concept, it has the potential to revolutionize the NFT industry, offering a wide range of possibilities. With the success of these living tokens, dNFTs can explore more innovations and develop new amazing use cases. With these dynamic NFTs leading the way, who knows what wild and wacky innovations and mind-blowing use cases we’ll uncover?