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Wear-to-earn: Fashion as NFT

NFT

It may be difficult for some to imagine that industry as old as fashion is connected with new technologies. Still, the reality is that there are more connections than you can imagine since innovation and style always go hand in hand, and NFTs are no exception. In a previous article, we told you about the different types of NFTs and how some were linked to fashion, so at El Dorado, we have further explored their applications and how they can shape the not-so-distant future.

The current fashion industry generates around 3 billion dollars annually; however, it is plagued by problems of sustainability and inequity (it is one of the most polluting industries, and those who manufacture the fabrics or garments often earn unfair wages). These problems could be solved by digitizing and tokenizing clothes, avoiding the massive use of limited resources, and allowing a more decentralized and transparent model for making clothes and accessories.

In principle, virtual clothing is an element that is gaining a strong presence in the metaverse since, like any virtual world, the customization of avatars is an essential part of them. However, this trend points to a future where digital alternatives almost entirely replace physical garments. But…

Why prefer virtual clothes instead of those made with traditional fabrics? 

Apart from considerably reducing the environmental impact, it opens up a world of new possibilities in fashion, with unique combinations never seen before; you only need to have a special outfit with various sensors to project through AR any design you have acquired.

You would no longer need a large closet full of clothes; they would be stored on your smartphone or some storage device. 'Did you like the digital design someone else uploaded? You don't even need to ask where you bought it! It would be enough to scan it to try it on and acquire it. Given these possibilities, the wear-to-earn model arises, similar to play-to-earn, where you are rewarded with tokens for playing and achieving specific goals.

What is wear-to-earn?

Wear-to-earn is a model in which designers, brands, and retailers focus on creating collections that include rewards for users who purchase and wear the garments. You can grant these rewards through tokens (fungible or not) with a monetary value, access to items, exclusive events, and even physical pieces.

Against this, Megan Kaspar, CEO of Magnetic Capital and DAO Network member, predicts that digital fashion NFTs will be the largest NFT category in Web 3.0. This is thanks to its various applications, so this model promises quite a lot of profitability in a future in which augmented reality, and virtual worlds are becoming increasingly important.

But why reward users for just wearing clothes or accessories? For the same reason, that games are incorporating play-to-earn models! Stimulate its use and fidelity by creating a community in which tangible value is provided to each member.

Although this model is only in a conceptual phase, there are already pioneering projects in a digital fashion that are capitalizing millions of dollars, the attention of investors, designers, and experts in new technologies. So below, we will tell you about some of the most outstanding virtual fashion projects committed to the metaverse and augmented reality.

DressX

This is one of the most innovative and advanced projects. It offers excellent realism and allows you to enjoy digital fashion at this precise moment; visit their website, upload a photo of yourself and start testing their innovative pieces. These designs are available for virtual use only. Although they are designed with virtual materials, more than one of them will surprise you due to their similarity to traditional fabrics and materials. It is hard to believe that they are only digital creations!

Although there are a couple of free options, their collections are collaborations with emerging and well-known artists, so you must pay to acquire most of their clothes and share the images on your social networks.

Among its plans for 2022 is to launch its NFT market, where we may start seeing wear-to-earn alternatives.

NFT Runway

This platform promotes itself as the first “phygital” (a combination of physical and digital) fashion project. 3DReal technology brings designers closer to the metaverse, allowing the creation of wearables NFT. Last December, they already performed their first show in the Decentraland metaverse, allowing users to wear digital versions of physical clothing through non-fungible tokens at more affordable prices than their physical versions.

It is important to note that a portion of sales is donated to charities through smart contracts in perpetuity, guaranteeing transparency and access to an economy with fairer income redistribution.

Space Runners

This is a fashion brand metaverse oriented; you can use each accessory in different metaverses and games, differentiating it from other projects that only focus their efforts on a single platform. In addition to providing style in virtual worlds, it offers benefits to its holders, such as access to events with celebrities and athletes who collaborate with the brand. Hence, its vision contemplates a wear-to-earn model in which people can access exclusive events by purchasing the brand's accessories.

How to make money with wear-to-earn?

Currently, the practicality of earning money through wear-to-earn lies in reselling unique pieces through NFT markets. And since now the rewards granted directly by virtual fashion brands are focused on access to events; however, 2022 may be the year in which we begin to see launches of tokens that are used to reward the most loyal users.

Sebastian Borget, co-founder and COO of The Sandbox, said that the platform would soon add wear-to-earn NFT options to many of its games, so the more time players spend using the avatar, the more they gain.

In El Dorado, we are attentive to those projects that are getting closer to becoming a reality, to offer you later the option of exchanging your tokens for other cryptocurrencies or your local currency. In the meantime, you can access our platform to purchase other cryptocurrencies using +30 payment methods.

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