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

Last Updated December 6, 2023 12:36 PM
Andrew Kamsky
Last Updated December 6, 2023 12:36 PM

Key Takeaways

  • Dynamic NFTs (dNFTs) use smart contract logic to update their metadata based on external factors, increasing adaptability and interactivity.
  • dNFTs differ from standard NFTs with their changeable metadata, enabling evolving features and broader utility.
  • dNFTs are key in evolving digital art, gaming, real-world asset tokenization, and interactive storytelling.
  • Developing dNFTs is complex, involving external data reliance, higher transaction fees, scalability issues, and user adoption challenges.

A dynamic NFT (dNFT) is an advanced form of a non-fungible token (NFT) that incorporates smart contract logic, allowing it to autonomously update its metadata in response to external factors. 

NFTs have gained significant traction in the Web3 community and beyond, positioning NFTs as a critical blockchain application in the public eye. The evolution of NFTs is entering a new phase with the introduction of dynamic NFTs (dNFTs). These dNFTs enhance the capabilities of traditional NFTs by dynamically adapting to external inputs and data. 

What Is An NFT?

NFTs are unique digital assets on a blockchain, each identified by a token ID and contact address. They can carry various forms of metadata, like images or videos, allowing for the ownership of unique digital objects. 

Mainly used in digital art, NFTs enable artists to mint tokens representing the artist’s artwork, which collectors can purchase to establish ownership. This model has revolutionized the digital art world by providing a way to authenticate and own original digital painting, addressing the long-standing unauthorized distribution and replication issue. 

In essence, NFTs represent a significant shift in digital ownership, offering verifiable authenticity and ownership of digital creations.

Most Expensive NFT Sold To Date

One notable example of an NFT selling for a significant amount is the artwork “Everydays: The First 5000 Days ” by the digital artist Beeple (Mike Winkelmann). This NFT sold for $69.3 million at a Christie’s auction in March 2021. The artwork is a collage of 5,000 individual images, which Beeple created one per day over 13 years. 

The NFT sale marked one of the highest prices ever paid for digital artwork and significantly elevated the profile of NFTs in the art world and beyond.

Static Vs. Dynamic NFTs (dNFTs)

Static NFTs, prevalent in digital art, play-to-earn games, and collectibles, can digitize unique real-world items like property deeds or patents. 

Static NFTs hold limitations, mainly in the unchangeable nature of their metadata once minted on the blockchain. This static feature restricts NFT use in dynamic scenarios like real-world asset tokenization or evolving gaming experiences.

Dynamic NFTs, on the other hand, are designed to adapt and change. Where dynamic NFTs’ metadata is governed by smart contract logic, the dNFT can automatically update in response to external factors. 

This adaptability extends beyond metadata, allowing for innovative uses like minting NFTs under specific conditions in augmented reality apps or revealing hidden features through user interaction. 

While dynamic NFTs can be programmed in numerous ways, visible metadata changes are often essential for making these adaptations perceptible to users.

How Does A Dynamic NFT Work?

To create a dynamic NFT, three key components are necessary:

Smart Contract Foundation For NFTs

The first step involves creating a robust NFT smart contract, typically based on established standards such as ERC-721 or ERC-1155, or using similar standards from other blockchains to ensure compatibility and functionality within a blockchain ecosystem.

External Data Integration

Essential for dynamic NFTs, this next step involves connecting the dNFT to external data sources to bring real-world information into the blockchain. This is usually achieved through blockchain oracle services, with Chainlink being a prominent example to bridge the gap between off-chain data and on-chain NFTs.

Automated Metadata Updates

Finally, to make NFTs dynamic, there’s a need for a mechanism that triggers automatic updates in the NFT’s metadata based on specific conditions. 

This is often accomplished using automation services like Chainlink Automation, which enable NFTs to change and evolve in response to external events or data.

Integrating these three essential elements above will allow developers to craft dynamic NFTs that can autonomously update based on specific data parameters. This integration brings a new dimension of interactivity and functionality to NFTs that were once static.

Applications Of Dynamic NFTs

Dynamic NFTs bring versatility to the traditional NFT format, where metadata is crucial in defining the token’s characteristics, such as its name, attributes, and linked digital files. Here are some critical applications of dNFTs:

Evolving Art And Gaming NFTs

When integrating art and collectibles with NFTs, various unique traits, including some of a rare nature, are encoded in the metadata, accompanied by links to related images or videos. Dynamic NFTs take this further by enabling the mentioned traits to evolve in response to external influences.

This adaptability is particularly impactful in blockchain gaming, where character development is fundamental. For instance, a blockchain game character, initially with essential attributes in its metadata, can evolve as the player progresses, with the dNFT metadata updating to reflect this growth.

Tokenization Of Physical Assets

Dynamic NFTs are also pivotal in tokenizing real-world assets that require dynamic metadata. Take, for example, a property NFT, which could update its metadata to include maintenance records, age, or fluctuating market values. 

This dynamic nature is essential for accurately representing assets whose characteristics change over time.

The Expansive Potential of dNFTs

The possibilities for dNFTs are vast; with metadata incorporated within an NFT, it may trigger various on-chain or off-chain events. 

Metadata changes may offer flexibility within the dNFT, opening up many applications beyond the current scope of static NFTs.

While the Web3 space is still predominantly occupied by static NFTs, some pioneering projects are already exploring the innovative frontiers of dNFT technology.

Some projects include exploring the creative possibilities of dynamic NFTs in the Web3 space. Some notable examples include:

Async Art

A platform where artists can create, sell, and collect programmable art. With dNFTs, that can change appearance based on external inputs or decisions made by the token holders.

Chainlink VRF (Verifiable Random Function)

Projects using Chainlink VRF  integrate dynamic features into their NFTs, such as randomized trait generation that can evolve.

Art Blocks

Known for generative art, Art Blocks offers NFTs that can change based on various factors, providing a unique experience for collectors.

NBA Top Shot

While primarily dealing with static NFTs, NBA Top Shot has explored dynamic aspects, like updating NFTs based on player performances and game outcomes.

Alethea AI

This project combines AI with NFTs, creating interactive and intelligent NFTs (iNFTs) that can evolve and respond to their environment.

Benefits of dynamic NFTs

dNFTs offer several innovative benefits that extend beyond the capabilities of traditional static NFTs:

Interactivity And Engagement

Dynamic NFTs can change in response to user interactions or external events, creating a more engaging and interactive experience for users.

Real-Time Updates

Dynamic NFTs can reflect real-time data, such as sports scores or market changes, keeping the NFT content current and relevant.

Enhanced Utility In Gaming

In gaming, dNFTs can represent evolving characters or items that change as the player progresses, adding depth to the gaming experience.


Dynamic NFTs allow for a higher degree of personalization, as they can adapt to individual user actions or preferences.

Tokenization Of Dynamic Assets

They are ideal for tokenizing assets that change over time, like real estate or collectibles, by updating their metadata to reflect current conditions or value.

Creative Expression For Artists

Artists can use dNFTs to create evolving artwork that changes over time or in response to certain triggers, opening new avenues for creative expression.

Increased Value And Rarity

The ability to evolve can make dNFTs more rare and valuable, as their traits can change to become more desirable over time.

Automated Compliance And Updates

Dynamic NFTs can automatically update to comply with legal requirements or contractual agreements encoded in their smart contracts.

New Business Models

Dynamic NFTs enable new business and monetization models, such as dynamic pricing or unlocking additional content or features over time.

Enhanced Storytelling

For creators and brands, dNFTs offer a unique way to tell stories that unfold over time, enhancing user engagement and brand interaction.

Drawbacks Of Dynamic NFTs

dNFTs, while innovative, also come with certain drawbacks:

Complexity In Development

Creating dNFTs involves more intricate smart contract programming compared to static NFTs. This complexity can lead to higher development costs and a greater risk of bugs or vulnerabilities in the smart contracts.

Dependence On External Data Sources

Dynamic NFTs often rely on external data for their dynamic features, which can introduce dependencies on third-party services like oracles. This reliance can pose data accuracy, latency, and potential manipulation risks.

Increased Gas Fees

The dynamic nature of these NFTs, especially those frequently updating their metadata, can result in higher transaction (gas) fees on the blockchain. This could make creating and interacting with dNFTs more expensive for users and creators.

Scalability Challenges

As there is a need for regular developer updates and network interactions with external data sources, a scalability challenge is likely to surface, especially on blockchains with limited throughput or high network congestion.

User Understanding and Adoption

The concept of dNFTs can be more complex for the average user to understand than traditional NFTs. This complexity might slow down their adoption among mainstream users who are not profoundly familiar with blockchain technology and smart contracts.


Dynamic NFTs represent an evolution in the NFT space, blending traditional NFT characteristics with the ability to autonomously update metadata in response to external factors. 

While standard NFTs offer unique digital ownership, particularly in digital art, dNFTs introduce dynamic elements, enhancing NFT utility in various applications like gaming and real-world asset tokenization. 

Creating dNFTs involves developing a robust smart contract, integrating external data through services like Chainlink, and enabling automated metadata updates. Dynamic NFT innovation opens up new possibilities for interactivity, personalization, and creative expression, though it also brings challenges such as increased complexity, dependency on external data, and scalability issues. 


What are dynamic NFTs (dNFTs)?

Dynamic NFTs are advanced NFTs that can autonomously update their metadata based on external factors, using smart contract logic, enhancing traditional NFT capabilities with adaptability and interactivity.

How are dNFTs different from standard NFTs?

Unlike standard NFTs with fixed metadata, dNFTs can change their attributes or content in response to external triggers, offering evolving characteristics and greater utility in various applications.

What are the key applications of dNFTs?

Dynamic NFTs are used in evolving art, gaming (character progression), real-world asset tokenization (reflecting current asset conditions), and interactive storytelling, offering personalized and dynamic digital experiences.

What challenges do dNFTs face?

Dynamic NFTs involve complex development, reliance on external data sources, potentially higher transaction fees, scalability challenges, and may be harder for average users to understand, affecting their mainstream adoption.

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