Pixel Heroes: Changing the NFT Game One Pixel at a Time

6 min readOct 27, 2023

Non-fungible tokens (NFTs) have exploded in popularity recently, but for many, the purpose and benefits of owning these digital assets remain unclear. However, new NFT projects like Pixel Heroes are pushing the boundaries and finding creative ways to deliver tangible value to holders.

Let’s explore the 7 key utilities that set Pixel Heroes apart and showcase the possibilities of NFTs.

(1) Passive Revenue Streams with Exclusive Games

One innovative utility is granting NFT holders a cut of revenues from exclusive games. Unlike third-party games, the games developed for PixelCase are designed specifically for Pixel Heroes. This means holders earn a portion of all profits generated.

Having in-house games incentivizes engagement within the Pixel Heroes community. Players spend more time and money on games they enjoy, leading to higher revenues. NFT holders essentially gain a passive income stream just for being part of the community.

The PixelCase team also takes input from holders on game concepts that could be developed. This gives the community a creative stake in the project’s future. Ultimately, exclusive games add tangible financial value for NFT holders in a way few other projects have accomplished.

(2) Buy-Back and Burn Mechanics

Another clever utility implemented by Pixel Heroes is a NFT buy-back and burn system fueled by platform profits. A portion of revenues from PixelCase, including fees and royalties from NFT trades, feeds into a treasury. The funds are used to buy back and burn NFTs from the secondary market.

This benefits the community in two key ways. First, burning NFTs increases scarcity, which boosts the value of remaining NFTs. Second, rewarding stakeholders for participation creates a fairer system compared to only lining the pockets of founders and developers.

Implementing this self-sustaining economic model has helped PixelHeroes stand out in the crowded NFT space. The project cements long-term viability by aligning platform growth with holder rewards.

(3) Access Exclusive Lotteries and Games of Chance

Lotteries and games of chance are another way Pixel Heroes adds value for NFT holders. Owning specific Pixel Heroes or PixelCollector NFTs grants access to exclusive lotteries with prizes funded by platform revenues.

Certain NFT sequences act as lottery tickets, similar to numbered raffle tickets. The project incorporates NFTs into the experience in an innovative way while also rewarding holders with prizes.

Participating in games of chance via NFT ownership provides a fun and rewarding experience for the community. And linking prizes to platform volumes incentivizes inviting more users to grow the ecosystem.

(4) Discounted Fees via Rakebacks

Pixel Heroes also implemented rakebacks, which are discounted fees NFT holders earn on the platform. Rakebacks are common in poker, where a percentage of fees paid get returned to players.

Implementing rakebacks in the PixelCase ecosystem rewards regular use. Players effectively gain back a portion of the platform fees they pay over time. This model incentivizes volume on the platform, while holders enjoy lower net costs.

Though not a complex utility, integrating rakebacks is an ingenious way to boost activity and loyalty. The model is proven to work in the poker world, making it a safe bet for increasing revenues.

(5) Priority Access for Token Sales

Another way Pixel Heroes rewards NFT holders is through priority access to future token sales. The team has hinted at an upcoming sale of $PIXEL tokens. Owning rare Pixel Heroes NFTs will grant holders an allocation bonus when purchasing $PIXEL.

Priority access is a common benefit in web3 projects. Allowing early backers first access to buy tokens helps kickstart liquidity and trading. Guaranteeing NFT holders allocation bonuses also incentivizes collecting rare heroes ahead of the sale.

The utility creates a fair launch by restricting public access and rewarding loyal community members first. Based on the current hype, gaining priority access could prove extremely valuable in the future.

(6) Airdrops for Loyal Community Members

Along with priority access, NFT rarity will also determine eligibility for upcoming $PIXEL airdrops. Air drops distribute tokens freely to community members. PixelHeroes aims to reward NFT holders based on rarity tiers owned.

However, owning rare NFTs alone won’t guarantee maximum rewards. The team wants to encourage using the platform in addition to just holding NFTs. Finding ways to reward desired user behaviors is a smart tactic to boost platform activity.

Airdrops tied to holdings cater to collectors and investors. But tying distribution to platform use ensures the model doesn’t solely benefit flippers and whales. Overall, the airdrop system aims to equitably reward loyal community members.

(7) Introducing Burn-to-Earn Mechanics

One final innovative utility is the upcoming ALL-IN events. These allow holders to burn NFTs for a chance to win big prizes. To participate, users need to collect full sets of certain dice rolls by having PixelCollector NFT on ZKsync.

After burning NFTs, players can spin a prize wheel with potential rewards up to $10,000! Bigger prizes go to users who burn rarer NFTs. Each burn reduces supply, making the remaining NFTs more scarce and valuable.

The burn-to-earn model represents a new paradigm in NFT utility. Usually, burning NFTs is a sunk cost with no upside. But PixelHeroes created a system allowing holders to profit by permanently burning select NFTs.

Combined with gaming elements like dice rolls and prize wheels, the utility could make burning NFTs profitable and exciting. It showcases how creative design can reinvent NFT fundamentals.

Pushing the Frontiers of NFT Innovation

While NFTs took off as profile pictures and digital collectibles, innovative projects like Pixel Heroes demonstrate their utility can go far beyond just visual appeal. With thoughtful design, NFTs can provide entertainment, potential financial benefits, priority access, and much more.

Pixel Heroes stands out by making NFT ownership inherently valuable. From revenue-sharing to burn-to-earn programs, holders obtain real benefits beyond hoping resale values increase. The project highlights how NFTs can transform from overhyped digital art into assets delivering tangible utility.

Moving forward, expect projects to continue iterating on utility mechanics like governance rights, staking rewards, and token gateways. As the technology matures, the benefits of owning certain NFTs will only become more pronounced and meaningful. Pixel Heroes offers an early glimpse of this evolution in action.

The Takeaway

While the true value of NFT ownership is still being defined, Pixel Heroes provides a template for creating utility that matters. The project’s innovative economic models, reward systems, and community-centric focus demonstrate how to make NFTs worthwhile long-term holds.

As the next wave of adoption reaches mainstream audiences, highlighting real utility will be key to separating revolutionary NFT projects from short-lived hype trains. By unlocking more possibilities for digital ownership, Pixel Heroes and other pioneering NFT platforms are poised to drive real change.

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