System and method for non-fungible token economy sinks

A method for use by a system including a hardware processor and a system memory storing a software code, the method comprising:

• determining, by the software code executed by the hardware processor, a number of users present at a location at a starting time of a non-fungible token (NFT) acquisition event;
• identifying, by the software code executed by the hardware processor based on the number of users present at the location at the starting time, a collaborative activity for the users, the collaborative activity requiring a relinquishment of a plurality of NFTs;
• communicating, by the software code executed by the hardware processor, the collaborative activity to the users;
• verifying, by the software code executed by the hardware processor, that the collaborative activity requiring the relinquishment of the plurality of NFTs has been completed;
• and
• providing, by the software code executed by the hardware processor in response to verifying, at least one new NFT for distribution to at least one of the users;
• wherein (i) a value associated with the at least one new NFT exceeds a value of the plurality of NFTs relinquished, or (ii) a number of the plurality of NFTs relinquished exceeds a number of the at least one new NFT.