1/ NFTs are the most socially optimal art platform we have found to date.
Art serves multiple private and public functions.
NFTs have solved the problem of how to serve these functions simultaneously, plus a few more things.
Art serves multiple private and public functions.
NFTs have solved the problem of how to serve these functions simultaneously, plus a few more things.
2/ Let's start with the private functions of art.
On the side of the artist, art allows an artist to express a certain point of view that the artist believes should exist in the world.
This is the creative/artistic/expressive part of art
On the side of the artist, art allows an artist to express a certain point of view that the artist believes should exist in the world.
This is the creative/artistic/expressive part of art
3/ Artists, like everyone, need money to live their lives, so the economic models that have evolved are, broadly:
a) private patronage/commissions
b) public patronage/commissions
c) purchase of primary pieces (private or public)
a) private patronage/commissions
b) public patronage/commissions
c) purchase of primary pieces (private or public)
4/ There is usually a bit of a trade-off between models a/b and model c.
When privately or publicly pre-financed, inevitably there is some concern about whether the financier will accept the art.
Lots of public financed art in the Soviet Union but it had to stay "on message".
When privately or publicly pre-financed, inevitably there is some concern about whether the financier will accept the art.
Lots of public financed art in the Soviet Union but it had to stay "on message".
5/ Private or corporate patrons have the same limitations.
It is a very rare, very enlightened private or public sponsor who will finance art critical of them or their interests.
Model c) has the opposite trade-off. Artists can produce as they choose but...
It is a very rare, very enlightened private or public sponsor who will finance art critical of them or their interests.
Model c) has the opposite trade-off. Artists can produce as they choose but...
6/ ...there is a risk that the market may not appreciate their art, either at the time or ever.
The "misunderstood artist genius" cliche is this example.
Many artists (famously Van Gogh) were unappreciated in their own time, "ahead" of the market
The "misunderstood artist genius" cliche is this example.
Many artists (famously Van Gogh) were unappreciated in their own time, "ahead" of the market
7/ There are private benefits to buyers/collectors as well. Roughly speaking the following:
a) cultural capital ("cool" to be an art collector)
b) access (access to other cool people)
c) price appreciation / investment
d) feeling of ownership
e) feeling of identity
a) cultural capital ("cool" to be an art collector)
b) access (access to other cool people)
c) price appreciation / investment
d) feeling of ownership
e) feeling of identity
8/ There are also public benefits to art as well that accrue neither to the artist nor to the collector.
I did not paint Guernica and I do not own Guernica and yet Guernica has made my life better and richer.
Broadly speaking, this is why public and private museums exist
I did not paint Guernica and I do not own Guernica and yet Guernica has made my life better and richer.
Broadly speaking, this is why public and private museums exist
9/ In terms of societal value, the public benefits in many cases probably far exceed the private benefits.
Whatever private benefits Picasso and the Museo Reina Sofia have from Guernica, the aggregate public benefits to "everyone else on the planet" are probably a lot higher
Whatever private benefits Picasso and the Museo Reina Sofia have from Guernica, the aggregate public benefits to "everyone else on the planet" are probably a lot higher
10/ In traditional art, the private benefits for collectors and the public benefits for the public are in opposition to each other because physical art can only be in one place at once.
In the narrow case that you buy art for yourself and hang it on your walls...
In the narrow case that you buy art for yourself and hang it on your walls...
11/ ...because you want to see it, enjoy it, feel the exclusivity of ownership and identity, that is Very Good and Very Nice, but then only the 50 people who regularly come to your house can see it.
So a common pattern you see with collectors is they buy, buy, buy
So a common pattern you see with collectors is they buy, buy, buy
12/ then they get older and/or pass away and one of two things often happen:
a) they donate to a museum to switch the model to public benefits
b) their heirs sell the pieces bc the identity aspect is weaker / non-existent for them and they prefer the cash
a) they donate to a museum to switch the model to public benefits
b) their heirs sell the pieces bc the identity aspect is weaker / non-existent for them and they prefer the cash
13/ NFTs provide a vastly superior model for maximizing private and public benefits at the same time.
The first and most obvious one is that NFTs have separated ownership and identity from display.
Everyone on NFT twitter knows for example that I own summer.jpg
The first and most obvious one is that NFTs have separated ownership and identity from display.
Everyone on NFT twitter knows for example that I own summer.jpg
14/ I have the private benefits of identity, of ownership, of an art appreciatoooooor who recognized its genius early, of price appreciation but, at the same time, every single other person with an internet connection can enjoy seeing it on the same terms as me. 
15/ Summer.jpg is not locked up in my living room, waiting for me to get old and/or die before I donate it to a museum decades from now so everyone else can see it.
To me, this is a huge benefit. It is also great for @XCOPYART whose work remains visible to all.
To me, this is a huge benefit. It is also great for @XCOPYART whose work remains visible to all.
16/ Sometimes non-NFT people, perhaps right click save as people freak out at this stage.
"But if everyone else can see it, why did you pay so much money for it?"
I find this hilarious. I don't want to hide summer.jpg from the world, like Gollum hiding his precious.
"But if everyone else can see it, why did you pay so much money for it?"
I find this hilarious. I don't want to hide summer.jpg from the world, like Gollum hiding his precious.
17/ Buying art to hide it from others (or even worse hide it in a freeport warehouse in Switzerland for tax purposes) is the pettiest, meanest form of art collection.
The greatest collectors / benefactors of the past paid and built for whole museums for public benefit
The greatest collectors / benefactors of the past paid and built for whole museums for public benefit
18/ NFTs in this case provide the best of both worlds:
a) the token ownership provides unambiguous proof of ownership
b) while there is full global public benefit and distribution without having to pay for concrete, steel, electricity and security guards of the museum
a) the token ownership provides unambiguous proof of ownership
b) while there is full global public benefit and distribution without having to pay for concrete, steel, electricity and security guards of the museum
19/ The above is the basic innovation - we will see over time three more forms of innovation.
The first is composability, specifically the fact that NFTs can be activated in any programmable environment.
The first is composability, specifically the fact that NFTs can be activated in any programmable environment.
20/ We are on Day 1, minute 1 of what can be achieved with programmability of NFTs.
The difference between an NFT that be made active with computers and a painting or a print that is carefully hanging on 1 specific wall is massive in terms of scope of innovation and activity.
The difference between an NFT that be made active with computers and a painting or a print that is carefully hanging on 1 specific wall is massive in terms of scope of innovation and activity.
21/ The second is rights management. It is rudimentary today but we'll soon evolve a machine readable standard for NFT rights - regular, commercial, non-commercial, public domain and so on.
This is a further enhancement to the composability of NFTs and accelerant to growth
This is a further enhancement to the composability of NFTs and accelerant to growth
22/ The third is secondary royalties.
This allows art that is ahead of its time to still find its market price on day 1 (low) but then as the worldview/market catches up to the artist, the artist will benefit in the price appreciation.
It is a, in aggregate, fairer model.
This allows art that is ahead of its time to still find its market price on day 1 (low) but then as the worldview/market catches up to the artist, the artist will benefit in the price appreciation.
It is a, in aggregate, fairer model.
23/ tl;dr, NFTs allow for:
✅Better private benefits for artists
✅Better private benefits for collectors
✅Better public benefits for everyone else
*All at the same time*
It is a Strong Pareto Improvement where everyone is better off and nobody is worse off.
🤝👊🙏🕺🔥🚀
✅Better private benefits for artists
✅Better private benefits for collectors
✅Better public benefits for everyone else
*All at the same time*
It is a Strong Pareto Improvement where everyone is better off and nobody is worse off.
🤝👊🙏🕺🔥🚀
24/ If you are arriving here for the first time, the mega list of NFT threads and the open metaverse game plan is here
https://twitter.com/punk6529/status/1448399827054833668
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