Today's 3D dynamic holographic display techniques suffer from severe limitations due to an available number of pixels that is several orders of magnitude lower than required by conventional approaches. We introduce a solution to this problem by introducing the concept of functional pixels. This concept is based on pixels that individually spatially modulate the amplitude and phase of incident light with a polynomial function, rather than just a constant phase or amplitude. We show that even in the simple case of a linear modulation of the phase, the pixel count can be drastically reduced up to 3 orders of magnitude while preserving most of the image details. This scheme can be easily implemented with already existing technology, such as micro mirror arrays that provide tip, tilt and piston movement. Even though the individual pixels need to be technologically more advanced, the comparably small number of such pixels required to form a display may pave the way towards true holographic dynamic 3D displays.