How To Create Dynamic NFTs (dNFTs)?
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How To Create Dynamic NFTs (dNFTs)?

1 year ago

Learn how to create Dynamic NFTs (dNFTs), an extension of an NFT that lets you infuse life and energy into your digital art.

How To Create Dynamic NFTs (dNFTs)?



  • Dynamic NFTs (dNFTs) utilize smart contracts and real-time data from oracles to evolve based on external conditions, such as weather, sports results, or asset prices.
  • Oracles play a vital role in dNFTs by providing and validating external data. Metadata, which describes a token's characteristics, can be updated with both on-chain and off-chain data.
  • Prominent use cases for dNFTs include sports, gaming, and real estate.
  • The Chainlink Verifiable Randomness Function (VRF) enables the random distribution of in-game items and traits, contributing to the rarity of items in play-to-earn games.

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What Are Dynamic NFTs (dNFTs)?

There’s NFTs and then there’s dynamic NFTs. They’re built by using smart contracts to incorporate real-time data provided by oracles. This data can change based on external conditions, such as weather conditions, the latest sports results or price changes of underlying assets.

One key element to know about dynamic NFT is the use of metadata. It describes the token’s characteristics and can include different types of information, such as names, descriptions and features.

So when data is added to a dynamic NFT, it evolves and its metadata is updated. The data added can be both on-chain and off-chain data. On-chain refers to data such as new high scores in a game. Off-chain data is imported via oracles and can be anything ranging from price differences of real-world assets to basketball scores.
That useful little functionality opens up the door to a ton of different use cases. The most prominent ones are sports, gaming and real estate. One example is the impact of this novel web3 technology on play-to-earn games, thanks to the Chainlink Verifiable Randomness Function (VFR). In-game items and traits are randomly distributed through the use of VFR, thereby determining the coveted rarity rating of different items.

Application of Oracles in Dynamic NFTs

Oracles play a pivotal role in dynamic non-fungible tokens. These collections of nodes provide and validate external data for smart contracts, which also include dynamic NFTs. For instance, an oracle can send external data to the smart contract that is the dynamic NFT. This prompts a change in the NFT’s metadata and thus, its front end: the characteristics and appearance visible to the owner.
Thanks to the assignment of values by Chainlink oracles, these NFTs can fulfill different use cases:
  • Creation of NFTs.
  • Transfer of their ownership.
  • Resolution of competition outcomes by assigning value to the assets.
Increased decentralization and automation are other benefits arising from the integration of oracles. They open the connection between the on-chain asset and off-chain events, thus bridging the gap between smart contracts and external web services.

Static NFTs vs Dynamic NFTs

The differences between static and dynamic digital non-fungible tokens are few but crucial. The static version of digital assets cannot be modified or changed and is not updateable over time.

The opposite is true for dynamic digital tokens. They are sometimes also called dNFTs or living NFTs. Their modifiable metadata makes them interactive and responsive, which enables different and broader use cases than static NFTs have.

Oracles transmit data to the non-fungible token without prompting the creation of a new one. The old token is modified, which makes the dNFTs a perfect match for use cases that require regular updating of data.

Static NFTs, on the other hand, cannot be changed or modified. This makes them more secure, more lightweight and more compatible with many existing protocols and systems. Since the number of transactions has no influence on the creation and storage process of these NFTs, they are a better fit for verification purposes. All of the metadata is stored in a single file for these types of NFTs.

How Do I Create a Dynamic NFT?

The creation of a dynamic NFT can add value to an NFT collection. To create a dynamic NFT, you need to follow some steps. First, you need to set up the ERC721 token. The next step is uploading the NFT image links in the IPFS URIs, followed by a compile check. Once that is done, the NFT contract needs to be “Keepers Compatible”. The last step is to create the smart contract that will modify the NFT based on the specified on-chain or off-chain variables.

The steps are summarized in short below.

Steps Involved in Creating Dynamic NFTs

1. Create a token with the ERC-721 or ERC-1155 standard.

2. Upload the NFT image links in the IPFS URIs.

3. Complete a compile check.

4. Make the NFT contract “Keepers Compatible”.

5. Create the smart contract that will modify the NFT based on the variables specified.

6. Test the dynamic NFT.

There are several platforms where you can create dynamic NFTs without any coding required.

Tools Required for Dynamic NFTs

There are different tools if you want to get your hands dirty with the creation of these web3 tokens:

Chainlink VRF

Chainlink VRF (Verifiable Random Function) is a secure and reliable source of randomness that can be used to create unique NFTs.

Chainlink Keepers

Chainlink Keepers is a decentralized service that can be used to automate smart contract functions. It can help you create dynamic NFTs that change over time based on certain conditions.


Polygon is a layer-2 scaling solution for Ethereum that can be used to create fast and cheap NFTs.


Truffle is a smart contract development framework that can be used to create and deploy NFTs on Ethereum.


Hardhat is another smart contract development framework that can be used to create and deploy NFTs on Ethereum.


MetaMask is a browser extension that can be used to interact with Ethereum-based DApps and NFT marketplaces. It can help you manage your NFTs and interact with other users in the ecosystem.

What Are the Benefits of Dynamic NFTs?

Interactivity, programmability and versatility are the clear upsides from these kinds of tokens. In practice, these factors result in new revenue streams for creators and collectors alike, as dynamic NFTs can constantly incorporate new data to stay up-to-date.

The interactive nature of dynamic NFTs means the NFTs can change their properties based on external on-chain or off-chain events. Creators can offer a more engaging experience and collectors are more likely to stay interested in evolving NFTs.

Another key benefit is programmability, which is the technical term for the dynamic nature of dNFTs. Since they can change and evolve over time, dynamic NFTs are perfectly suited for the creation of games that incorporate new and evolving characters. This versatility makes dynamic NFTs so attractive to collectors, as their final value is not fixed like it is the case for static NFTs.

As a result, dynamic NFTs create new revenue streams for artists and collectors. They offer a high degree of interactivity, which makes them more attractive to buyers and fans. This opens up new opportunities for creators to monetize their work.

NFTs vs Blockchain-Based Assets

Non-fungible tokens (NFTs) and other crypto tokens exhibit distinct differences concerning their inherent traits and uses.

NFTs are unique and indivisible tokens (fractional NFTs aim to help users on that front), often representing digital or physical assets like artwork, game items or collectibles. Each NFT has its own set of metadata, making it impossible to interchange them on a one-to-one basis. Conversely, cryptocurrencies, such as Bitcoin and Ethereum, are fungible assets that are interchangeable and divisible.
While NFTs inherently focus on exclusivity and rarity, allowing for the ownership and transfer of distinctive digital artifacts, fungible crypto assets prioritize financial exchange and liquidity.

Examples of Dynamic NFTs

While there may be future applications in the IoT and real-world assets, the metadata change made possible by dNFTs is currently mostly used in play-to-earn games and fantasy sports. Here are some examples of applied use cases benefiting from the real-time upgrades enabled by these specific ERC-721 tokens.

NFT Sports

Dynamic NFTs have been used in sports to create unique experiences for fans. One example is the LaMelo Ball NFT. Named after LaMelo Ball, a professional basketball player that launched eight different types of digital collectibles, these tokens update according to the player’s statistics (points, assists, rebounds per game).

Source: Chainlink

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