Dynamic NFTs are not at all new. But for those who might be hearing them for the first time, here are a few things you ought to know.
Known as living NFTs, Dynamic NFTs use Smart Contracts that mutate throughout its existence depending on extrinsic data and how developers have programmed them.
These NFTs allow owners to link their actions on a chain and real life through the tokens they buy. The change happens via the NFTs' metadata based on conditions like time, interactions with other tokens, etc.
One example of a Dynamic NFT was created by Mike Winkelmann, aka Beeple. He created the NFT piece, "Crossroad" which changed appearance based on the 2020 U.S. Presidential Election outcome.