Thread by @_kinjalbshah

NFTs are the most effective distribution channel for IP, as a result, the category will redefine e-commerce

The current state:

- IP is created, managed, and distributed with a top-down approach

- Digital content is static, with limited financial or economic utility

- the Internet is effectively permissioned

NFTs are a tool for e-commerce

1. They remove the need for intermediaries
2. Provide programmability of value
3. Redefine customer acquisition costs

Without the reliance on intermediaries, every interaction supersedes any one platform

virtual goods will organize themselves outside the boundaries of any one intermediary

NFTs are programmable

We've seen this with
- royalties
- secondary sale splits
- NFT gated access

NFTs are virtual goods but they are also contracts.

Customer acquisition costs are driven down

@cdixon discusses this in NFTs + 1000 True Fans

when users become owners, every NFT is fueled by community and peer-to-peer marketing

NFTs will increasingly be used as a distribution tool

- airdrops to existing NFT holders
- incentivized access
- NFTs that morph over time
- NFT "referral programs"

bottoms up IP will unlock the creative commons

we've seen this exemplified by @nounsdao @BoredApeYC

the power of the IP is fueled by the community (who are also creators) and distributed via the NFTs

we've already seen a flurry of business model innovation

some may look similar to the past (e.g., membership/access)

others fundamentally change how creators get paid
(e.g., play-to-earn or secondary royalties)

brands that succeed will seed their community with NFT experiments and educate users along the way

to shoutout a few that I believe embraced NFTs authentically

@bobbyhundreds @AdamBombSquad
@emrata
@beeple