Thread by @skominers

If NFTs are all about enabling ownership, then why would creators choose to give away intellectual property rights through creative commons licensing (cc0)? 🤔❓❔❓

@flashrekt and I explain in a new @a16z crypto article: a16zcrypto.com/cc0-nft-creati…

🧵👇

"Open-sourcing" IP opens it up to experimentation and recombination – which can sometimes grow its value! a16zcrypto.com/cc0-nft-creati…

@XCOPYART went the cc0 route with “Right-click and Save As Guy” and inspired TONS of derivatives.

And just this week, they went even further, declaring an intention to go “all in” on cc0:

https://twitter.com/XCOPYART/status/1554112748816109569

Why are so many NFT creators going down the “no rights” path?

Adopting the Creative Commons Zero (cc0) license gives everyone the right to adapt and build upon IP (without fear of legal consequences).

This jumpstarts meme-ability by actively inviting the creation of derivative works. creativecommons.org/share-your-wor…

Just as smart contracts are composable "building blocks" that can be stacked and remixed to create richer applications, NFTs and their underlying smart contracts can act as a base-layer foundation for culture and creativity to recombine and interconnect. niftypins.io/loot-nft/

@dhof’s cc0 @lootproject for example, started with a series of “Loot bag” NFTs, each comprising just a simple list of "adventure items" such as Loot Bag #5726's "Katana, Divine Robe, Great Helm, Wool Sash, Divine Slippers, Chain Gloves, Amulet, Gold Ring." opensea.io/assets/ethereu…

Creators from all over have contributed derivatives to the "Lootverse:" games (@LootRealms; @TheCryptGame), characters (@GenesisLoot; @hyperloot_; @LootExplorers), storytelling (@BannersNft; @OpenQuill), and even leveling infrastructure (@LootRift).

https://twitter.com/TimshelXYZ/status/1553072711529730049

For NFT projects that are trying to build novel brands, these sorts of derivatives can be a win-win for all.

Derivatives borrow some brand awareness from the source project; their creation and sharing can later drive new interest in the original.

If you see someone wearing @nounsvision glasses on the street (or in a Super Bowl commercial), you might want to get a pair of your own – but you also might become interested in buying an original @nounsdao NFT or some other related derivative.

Similarly with for the "blitcap" hat, which is available in physical and on @0xTajigen characters – both a nod to a trait in the @chain_runners collection, which itself introduced the trait in homage to @blitmap's Logo.

cc0 allows this to happen with the explicit permission of the original creators – thus giving an NFT's enthusiast community a *literal license to build* new value layers whenever they want –

"transform[ing] an adversarial game into a co-operative one"

https://twitter.com/punk4156/status/1530914499380797440

This can work particularly well with NFTs because ownership enables people to internalize the results of the co-creation through the value that accrues to their assets and contributions – and that in turn incentivizes them to participate in co-creation in the first place.

But it's not enough to simply build cc0 and assume "they will come" – derivatives don't magically appear! There are factors that help here: a16zcrypto.com/cc0-nft-creati…

As with open-source software, cc0 NFTs work best where there is potential for a rich, expanded ecosystem.

Examples: Loot bags are basic primitives that make sense for all kinds of adventure settings; the Nouns brand is as intuitive for a beer ad as for physical glasses; and the @goblintown art style looks good on everything from @Dirt_Birds_NFT to @valkilmer.

https://twitter.com/goblintownwtf/status/1530658592071856133

As a business professor, I'd be remiss if I didn't mention business models:

Because cc0 projects typically earn royalties from secondary sales, third-party expansions and derivatives can also become sources of revenue, as they drive increased demand for the original cc0 assets.

And cc0 licensing reduces friction that might otherwise stop brand-reinforcing extensions from being created – or worse, lead to them in a way that bypasses the original, as @tshirtbob_ recently explained in the context of his cc0 @acommonplacenft:

https://twitter.com/tshirtbob_/status/1551991289822027777

All of that said, cc0 isn't a one-size fits all solution – the right IP model depends on your strategy and goals. Brands that are already well-established, for example, might opt for more restrictive licenses as a way of protecting their existing IP and reinforcing exclusivity.

But for some projects, at least, cc0 licensing is an incredibly compelling way to kickstart IP that may one day take on a life of its own.

Intrigued? Full article is here: a16zcrypto.com/cc0-nft-creati…

And go check out a cc0 project like @nounsdao, or, e.g., @acommonplacenft, @AnonymiceNFT, @blitmap, @chain_runners, @cryptoadzNFT, @Crypto_Teddies, @flipmap, @goblintown, @_GRADIS_, @lootproject, #mfers, @OfficialMirakai, @shields_bot, or @terrarium_club.

As the NFT space continues to evolve, we expect to see more infrastructure and design patterns supporting cc0 efforts, as well as innovation around value capture. It's also likely we'll see creators develop completely novel rights&licensing models.

QED. a16zcrypto.com/cc0-nft-creati…

Our thinking reflects learnings from @ccatalini, @cdixon, @0xfar, @Jad_AE, @jessewldn, @jonitzler, @krybharat, @ljin18, @margo_seltzer, @NFTbark, @niftypins, @seeapefollowape, @TimshelXYZ, @tshirtbob_, @valetjones, and @chain_runners. Special thanks also to our editor @rhhackett!

And on a personal note: shoutouts to @flashrekt – he's one of the first friends I made entirely through the NFT space, and I've learned so much from him. Such an honor to have had the opportunity to collaborate on this piece 🙏🙌

Disclosures: @a16z, @flashrekt, and I hold a number of cc0 and other NFTs, including some from collections mentioned here and in the article…

… plus @flashrekt is a member of @c0c0dao and @sharkdao…

… and I advise marketplace businesses, startups, and crypto projects, and also serve as an expert on NFT-related matters, including regarding questions related to IP strategy.

(For full disclosure statement, see the article a16zcrypto.com/cc0-nft-creati….)