Composable NFTs unlock new asset behaviors by enabling NFTs to hold, reference and evolve alongside other tokens.
As the NFT space evolves, so do the ways we use and structure digital assets. Composable NFTs – tokens that can contain and interact with other NFTs – offer a more modular, flexible approach to digital ownership. Instead of each NFT existing in isolation, composable NFTs allow assets to be bundled, upgraded or linked together in structured hierarchies.
This opens up a range of new possibilities: combining items in a game inventory, upgrading avatars with wearable NFTs, bundling utility tokens into a service package or creating layered financial assets. Royalties can also be split among multiple contributors automatically, enabling more transparent value sharing across complex NFT ecosystems.
Whether used for creative projects, gaming, metaverse infrastructure or DeFi integrations, composable NFTs offer a practical framework for building richer, more interconnected Web3 applications.
How composability works
At its core, a composable NFT is a digital asset that can contain or be linked to other NFTs. Technically, this is achieved through smart contract logic that allows one NFT – often based on the ERC-721 standard – to reference or hold other NFTs, such as ERC-1155 tokens.
There are two main models of composability:
- Top-down composability, where a parent NFT maintains a record of the NFTs it owns – for example, a game character that “owns” a sword, clothing or accessories.
- Bottom-up composability, where a child NFT knows which parent it is associated with – such as a modular component that belongs to a larger structure or container NFT.
Some NFTs can operate in both directions, acting as parents and children simultaneouslyб enabling flexible and layered structures.
Composability is enforced through contract-defined rules, which can include:
- Limits on how many tokens an NFT can hold
- Requirements for uniqueness or compatibility
- Rules for mutual exclusivity (e.g., preventing two items from being equipped at once)
When a composable NFT is transferred, its nested components are transferred with it, preserving the full asset structure on-chain. This allows for powerful behaviors like bundled sales, nested upgrades or inventory systems – all without needing centralized control or manual reconciliation.
Standards and frameworks enabling composability
Several standards and frameworks are driving this evolution:
- EIP-998 – Introduces composable ERC-721 tokens, enabling NFTs to own other NFTs or ERC-20 tokens via parent-child hierarchies.
- ERC-6059 – Defines multi-asset NFTs, allowing a single token to represent multiple embedded assets (e.g., different visual states or attachments).
- ERC-7401 and ERC-5773 – Newer proposals that expand on nesting, composability and dynamic metadata logic.
- RMRK – A composability framework outside Ethereum that enables nested NFTs, conditional logic and cross-collection interactions, pushing the boundaries of NFT design.
Real-world applications
While composable NFTs are often associated with creators, their utility reaches far beyond royalties or art collaborations. They introduce modularity into digital ownership, opening doors to more dynamic and programmable assets across sectors.
Gaming
Game developers can use composable NFTs to simplify inventory systems. A single NFT could serve as a character or item loadout, with swappable components like armor, spells or stats. This makes trading and game logic more flexible, while maintaining full on-chain provenance.
Collaborative media and digital content
Composable NFTs are especially useful when multiple contributors are involved in creating a single piece of digital content. While music is a natural fit – with beats, vocals and production components bundled into a unified track – the same structure applies to many other formats:
- Video production: A film NFT could combine rights or credits from editors, animators, composers and scriptwriters.
- Publishing: An eBook NFT could contain illustrations, chapter contributions and cover art – all linked to different creators.
- 3D and VR assets: In the metaverse, 3D objects may be collaboratively built and composed into larger scenes or environments.
Real-world asset tokenization
Composable NFTs also have potential in representing physical goods. For example, a car (parent NFT) might include components like engine, tires and registration as separate tokens. Maintenance history or insurance contracts could be “attached,” offering a complete, verifiable ownership record.
Supply chains and licensing
Businesses could tokenize a product and dynamically attach certifications, licenses, or raw material NFTs. As the product moves through a supply chain, its composite NFT evolves, providing real-time transparency and simplifying audits.
While the concept of composable NFTs isn’t new, the infrastructure enabling them is finally catching up. With standards like EIP-998 (parent/child NFT ownership), ERC-6059 (multi-asset NFTs) and newer proposals such as ERC-7401 and ERC-5773, developers have the tools to build NFTs that do more than just sit in wallets – they can interact, evolve and carry value across ecosystems and creators.
Beyond Ethereum, frameworks like RMRK also demonstrate the potential of advanced composability through features like nested NFTs, conditional logic and cross-collection interaction.
Source: https://blog.1inch.io/
