The use of NFTs to tokenize creative works is growing. Artists are attempting to tokenize their IP and these tokens are trading on dexes and other marketplaces. Some NFTs are selling for $50k+ and we're seeing robust NFT marketplace emerge:
A short thread 👇
A short thread 👇
There are some interesting concepts being explored with NFTs, including:
- using smart contracts to program ongoing payment to authors on secondary transactions.
- fractionalizing all or parts of the NFT so it can be owned by a group of people.
- using smart contracts to program ongoing payment to authors on secondary transactions.
- fractionalizing all or parts of the NFT so it can be owned by a group of people.
- cryptographically creating sub-tokens that can approximate licensing rights.
However, there are some things for folks exploring NFTs to consider:
However, there are some things for folks exploring NFTs to consider:
- Tokenizing creative works will likely require some additional licensing / assignment language, presumably at the point of creation, if folks want real-world protections. Ownership of the underlying IP is key.
- If the party tokenizing an NFT is not the owner of the IP, the token doesn't convey much.
- Tokenizing IP that you don't own may also open up the creator to other issues, like a copyright infringement suit.
- Tokenizing IP that you don't own may also open up the creator to other issues, like a copyright infringement suit.
NFTs are incredibly cool and we'll likely see a bunch of growth here. And, there are some details to work out over the next several years. However, I have a feeling the smart folks working in this space will figure these issues out.
