Managing the product lifecycle of non-fungible tokens: A micro-level perspective

Abstract

Non-Fungible Tokens (NFTs) have become part of the product portfolios of many brands, ranging from individual creators to established firms. Yet, we currently have a limited understanding of how NFTs should be designed, launched, and managed effectively over their lifecycle journey. To fill this gap, we explore the distinctive lifecycle of this novel digital product category. Rather than focusing on the macro-view of the product lifecycle at the aggregate product category level (e.g., introduction, growth, maturity, and decline), our work offers a micro-view of the lifecycle at the individual NFT level, focusing on the relevant decisions to be made and activities to be performed by a creator or a firm. Drawing on the product lifecycle management literature and field exemplars, our proposed NFT lifecycle consists of three main stages: (1) Inception (featuring content creation, minting, and dropping), (2) Circulation (involving experience, trade, and commercial exploitation), and (3) Termination (including timed expiration, regeneration, and retirement decisions). Our conceptual work contributes to the emerging literature on blockchain assets by developing an original and integrative lifecycle framework. It also offers marketers actionable insights into how to manage each of the different lifecycle stages of a decentralized digital offering like NFTs, broadening the focus from short-term activities (e.g., Inception and Circulation) to the long-term ones (e.g., Termination).