Nobody is mentioning that one of the biggest NFT payoffs happened yesterday. Over $500m was paid to thousands of people who previously minted (or registered) a domain name on the Ethereum Name Service ($ENS). coindesk.com/business/2021/…
This is an early glimpse as to how producers can benefit when their platforms seek the securitization of their governance.
The problem with platforms such as marketplaces (uber, airbnb) and social networks is that they fail to properly compensate their producers. The majority of the gains trickle up to the administrators of the platform and not its individual producers. medium.com/intuitionmachi…
If we look closer at DeFi platform like Uniswap and Compound we begin to see the makings of the future of decentralized platforms. Compound is a lending platform where individuals can supply their assets for lending. Uniswap is one where one supplies 'liquidity'.
In both platforms, the 'NFTs' created by the producers are also incentivized through airdrops or mining of governance tokens. Think of it like how a credit card gives you reward tokens for using their card.
NFTs can be of any complexity such that the rewards are calculated to incentivize behavior that best improves the overall growth and utility of the entire platform. What we are seeing today is the primordial form of decentralized production entities.
The problem with blockchain systems is their inaccessibility to the real world. But this is where it gets really interesting! A lot of focus has been on virtual things like finance (DeFi) and digital artifacts (NFTs and Games).
Bridging the physical and virtual worlds is very difficult. The only trillion dollar marketcap company that has done so is Amazon. Almost every other company resides in the virtual space. But what will be the Amazon for in the cryptocurrency economy?
Perhaps it's related to the lightest inert substance on earth.
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