NFT as a Business Function
Embed lightweight tokens into the business instead of launching hype projects
- Difficulty
- Moderate
- Time to result
- ~weeks to results
- Steps
- 5
- Confidence
- 95%
This framework treats an NFT as one function within an operating business rather than as a self-contained product that must manufacture hype, a roadmap, and a high launch price. The issuer first identifies a real business job, such as membership, appreciation, audience participation, fundraising, or persistent access. It then issues a lightweight token whose utility can grow with the underlying creator or company. This reverses the pattern in which a collection raises money first and only afterward discovers that holders expect continuous delivery. The mechanism aligns token obligations with existing operational capacity and allows utility to be added as the organization matures. The result is a token that strengthens an actual business relationship instead of forcing a project team to build an improvised company solely to defend the token's market price.
Origin
Katie Chen contrasted lightweight, business-integrated tokens with collections that raise money and then discover they must become operating companies. Extracted from Marketing Against The Grain.
Core principles
- 01Treat NFTs as infrastructure supporting a business
- 02Prefer lightweight participation over inflated launch prices
- 03Let supporters access an unfolding journey
- 04Plan operational capacity before creating obligations
How to run it
- 1
Identify the business job
Specify the recurring business function the token should support, such as membership, appreciation, access, participation, or financing.
Pro tip Phrase the job without mentioning NFTs to verify that it is a genuine need.
Watch out If the only job is raising the secondary-market price, the design remains speculative.
- 2
Choose the minimum token
Create the lightest token capable of performing the job. Avoid unnecessary scarcity, elaborate lore, or an oversized roadmap.
Pro tip An inexpensive or free token can be enough to establish a persistent relationship.
Watch out Complexity creates obligations before product-market fit is known.
- 3
Connect it to operations
Tie token benefits to products, events, content, communities, or workflows the organization can already operate.
Pro tip Use existing systems first and add specialized infrastructure only when demand is proven.
Watch out Do not create benefits that require an unstaffed product organization.
- 4
Build alongside holders
Invite holders to contribute feedback, promotion, ideas, or participation as the underlying business develops.
Pro tip Give holders specific contribution opportunities rather than vague promises of community governance.
Watch out Participation must not become unpaid labor disguised as ownership.
- 5
Expand utility deliberately
Add new functions as the business grows and as holder needs become clearer. Preserve the original token's continuity where possible.
Pro tip Prioritize utility that reinforces the issuer's core value proposition.
Watch out Do not add features solely to stimulate trading activity.
In the wild
A collection raises substantial money through attractive art and hype. Holders then expect the team to preserve value, forcing the project to hire people, establish processes, and deliver benefits. Applying this framework earlier would define the operating function, delivery capacity, and holder relationship before the sale.
→ Token obligations and operational capacity are aligned before launch.
A creator distributes inexpensive tokens to early supporters. The token initially records membership and later unlocks feedback sessions, private updates, and launch previews as the creator's business grows.
→ Supporters gain durable access without the creator promising an elaborate speculative roadmap.
Common mistakes
Launching a company by accident
A successful sale can create holder expectations that require a team, process, and continuous delivery the project never planned to provide.
Using hype as the product
Hype may raise the initial price but does not define a sustainable business function or holder benefit.
Overbuilding the roadmap
Planning every future feature before learning what holders need wastes effort and increases delivery risk.
Is it for you?
Best for
Existing businesses and creators that want tokens to support membership, appreciation, access, participation, or financing.
Not ideal for
Short-lived speculative collections whose only intended output is a rapid secondary-market price increase.
From the transcript
“we have to see NFTs more of a function of business rather than this thing that stands alone.”
“They're gonna be these very lightweight, transferable things where people just hold on to and they have a way to access the creator's journey as…”
“They raise a ton of money, and then they realize wait a minute, people that hold these NFTs want us to deliver value because they…”
From the episode
How You Can Use NFTs For Your Business with Katie Chen
Katie Chen