NFT referral network illustration

Unlock NFT Value: How a Referral System Can Make You Richer

Lena Voss in Tech & Innovation December 2025 • 4 min read.

"Discover how the innovative use of NFT referral networks could revolutionize digital ownership and creator incentives, offering a sustainable income stream."

Non-Fungible Tokens (NFTs) have surged from a niche concept to a mainstream phenomenon, capturing the attention of artists, collectors, and investors alike. As the NFT market matures, new strategies for optimizing incentives and creating sustainable value are emerging. One particularly promising approach involves leveraging referral networks to build stronger connections between NFTs and foster a more rewarding ecosystem for creators and collectors.

The traditional NFT incentive model often operates in isolation, with creators and collectors engaging in one-off transactions that don't necessarily contribute to long-term growth or community building. Recognizing this limitation, researchers have been exploring innovative ways to structure NFT incentives, aiming to unlock new opportunities for collaboration and value creation. This includes the implementation of a Directed Acyclic Graph (DAG)-based NFT network.

Imagine a system where each NFT isn't just a standalone asset but also a node in a dynamic network, capable of generating ongoing rewards through connections and referrals. This model aims to maximize the links between NFTs, enabling each token to expand its network and accrue benefits from subsequent or related creations. In essence, it transforms NFTs from isolated digital assets into interconnected components of a thriving ecosystem.

Why Current NFT Incentives Fall Short

Current methods for incentivizing NFT creation and collection tend to focus on isolated actions. Artists might mint and sell their work on marketplaces, hoping to capture a high bid, while collectors seek to profit by buying low and selling high based on fleeting market trends. These approaches often lack the potential for sustained revenue streams and can lead to a glut of meaningless NFTs, congesting networks and driving up transaction fees.

The existing NFT landscape often overlooks the potential for Intellectual Property (IP) creators to derive long-term benefits from their work. Consider a musician who earns royalties each time their songs are played. A similar mechanism in the NFT space could revolutionize how digital creators are compensated, fostering a more sustainable and rewarding environment.

One-Time Rewards: Incentives are typically tied to specific actions like minting, selling, or staking, offering only static and predictable income.
Isolated Topology: NFTs are often designed in isolation, limiting their ability to form dynamic relationships and broader networks.
Market Congestion: The focus on maximizing sales can lead to the creation of numerous low-value NFTs, resulting in network congestion and high transaction fees.

To address these shortcomings, a new model is needed that fosters continuous revenue streams and encourages meaningful connections between NFTs. This model should incentivize creators to produce high-quality work that resonates with audiences and rewards collectors for actively participating in the ecosystem. This is where the concept of a reference incentive model comes into play, offering a promising path towards a more sustainable and equitable NFT landscape.

The Future of NFT Incentives

As the NFT space continues to evolve, innovative incentive mechanisms will be crucial for fostering a thriving and sustainable ecosystem. By embracing models like the reference incentive system, creators and collectors can unlock new opportunities for collaboration, value creation, and long-term growth. The future of NFTs lies in building interconnected networks that reward meaningful contributions and empower digital ownership.

About this Article -

This article was crafted using a human-AI hybrid and collaborative approach. AI assisted our team with initial drafting, research insights, identifying key questions, and image generation. Our human editors guided topic selection, defined the angle, structured the content, ensured factual accuracy and relevance, refined the tone, and conducted thorough editing to deliver helpful, high-quality information.See our About page for more information.

This article is based on research published under:

DOI-LINK: https://doi.org/10.48550/arXiv.2402.06459,

Title: Maximizing Nft Incentives: References Make You Rich

Subject: cs.gt cs.ce cs.cr cs.cy econ.gn q-fin.ec

Authors: Guangsheng Yu, Qin Wang, Caijun Sun, Lam Duc Nguyen, H. M. N. Dilum Bandara, Shiping Chen

Published: 09-02-2024

Everything You Need To Know

What is the main problem with current Non-Fungible Token (NFT) incentive models?

The primary issue with existing NFT incentive models is their reliance on isolated, one-off transactions. Creators often focus on minting and selling their work, while collectors aim for short-term profits. This approach limits the potential for sustained revenue streams and community building, leading to a glut of low-value NFTs and increased network congestion. Furthermore, current models often overlook the long-term benefits for Intellectual Property (IP) creators, unlike traditional royalty systems found in other creative industries.

How does a Directed Acyclic Graph (DAG)-based NFT network improve NFT incentives?

A DAG-based NFT network transforms NFTs from isolated assets into interconnected components within a thriving ecosystem. Each NFT acts as a node in a dynamic network, generating rewards through connections and referrals. This model maximizes links between NFTs, allowing each token to expand its network and benefit from related creations. This contrasts with traditional models that offer one-time rewards and lack dynamic relationships, fostering continuous revenue streams and encouraging meaningful connections.

What are the key shortcomings of traditional NFT incentive models?

Traditional NFT incentive models suffer from several key shortcomings. They typically offer One-Time Rewards tied to specific actions like minting or selling, providing only static income. Additionally, they have an Isolated Topology, limiting the ability of NFTs to form dynamic relationships and broader networks. Lastly, they contribute to Market Congestion by prioritizing sales, which leads to numerous low-value NFTs, increased transaction fees, and network slowdowns. Addressing these points is the key for a more sustainable NFT ecosystem.

In what ways can a referral system revolutionize the NFT space?

A referral system can revolutionize the NFT space by creating a more sustainable and equitable ecosystem. It incentivizes creators to produce high-quality work that resonates with audiences and rewards collectors for actively participating in the ecosystem. This model fosters continuous revenue streams, encourages meaningful connections between NFTs, and aligns incentives for creators and collectors. This mirrors the potential for IP creators to derive long-term benefits, similar to royalty mechanisms, which would revolutionize digital creator compensation and encourage sustained value creation.

How can NFT creators and collectors benefit from embracing innovative incentive mechanisms?

By embracing innovative incentive mechanisms such as the reference incentive system, both NFT creators and collectors can unlock new opportunities for collaboration, value creation, and long-term growth. Creators can benefit from continuous revenue streams and expanded network reach, while collectors can enjoy a more rewarding experience through active participation. This shift fosters a sustainable ecosystem where meaningful contributions are rewarded, empowering digital ownership and driving the future of NFTs beyond isolated transactions.