NFTs are very early in the irruption-installation phase of Perez' hype cycle.
I'm optimistic they are going to work with mainstream audiences, but what is the wedge?
If I had to guess, it'll play out as follows 👇
1/ Irruption becomes frenzy alongside the backdrop of a crypto bull market. Digital artworks sell for $MMs, grabbing headlines, creator and collector attention.
2/ Developers rush in, building new marketplaces and experiences around issuing, collecting and trading NFTs.
This is clearly happening right now. New marketplaces and subniches are popping up daily. My fav as of late is @artblocks_io for generative art.
3/ One of the new developers builds an experience that is social first—as in: content primary, market secondary.
But because markets are present, users can make $ alongside creators who they support, a powerful incentive.
This drives exponential growth in # of NFTs?
4/ These NFTs are more than "traditional" collectors items— they are programmable assets.
The blockchain becomes a "universal media library" that developers can build on and remix.
In turn, creators and collectors want their work in the "universal media library" because provenance and attribution are baked in, allowing them to capture the value of reuse as work goes viral.
1/ Being able to "invest in whats in the fridge"—brands whose products and services are used or recognized globally—is now globally accessible, as it should be.
Where a network is sufficiently similar to a cooperative, its possible a team can launch a token and decentralize ownership, while continuing to lead their project—without fear of violating securities regulations.
IANAL and this post does not provide a comprehensive legal analysis.
We are flagging this argument for further consideration in the hopes that crypto teams will consider them with their own counsel :)
In crypto, user-ownership can help drive network growth faster than any Web 2 growth hacking tricks
But nailing an effective ownership distribution is one the biggest challenges (and opportunities) for teams.
Best practices remain murky.
Can we fix that? Thread 👇
Taking a step back, figuring out ownership distribution is an exercise in Mechanism Design:
"a field in economics and game theory that takes an objectives-first approach to designing economic mechanisms or incentives, toward desired objectives..."