NFT Role in Ownership Economy
1. Fans as Active-Investors
NFT mechanism allows fans to be active investors in supporting their role person in their endeavour.
One example is the blockchain crowdfunding on Mirror.xyz for authors. This can include authors of novels, essays, or even poems, as long as it is creative writing material. Mirror.xyz opens up another possibility for the NFT landscape, beyond just the collectibles market.
Unlike Kickstarter, all the NFT transactions on Mirror.xyz are ingrained onto the blockchain, creating secure and transparent transactions. One aspect to keep in mind while dealing with NFTs, whether as a creator or investor, is the tax implications on NFTs in your country. For example, if you are a creator based in India, you are liable to pay a 30% tax on crypto profits you made by selling your NFT, plus 1% TDS. So, read about crypto taxation wherever you are located, be informed and stay compliant.
2. Fans as Consumers + Community members
Services is another segment that NFT is able to tap into.
By linking services to NFT, the creator can monetise their services and this allows their rate to follow the market demand. Hence if the demand is huge, the price will follow suit.
Zeneca_33, a prominent investor in the NFT space, noticed that more and more people are asking him for advice for their Web3 projects. Due to overwhelming requests, he has had to reject most of them. While thinking about how to use his knowledge to help more people but at the same time put a value to it, he thought of creating an NFT for his mentorship service. This resulted in his creation of ZenAcademy 333 NFT.
3. Fans as Supporters + Community Members
Collectible NFT has made it easier for fans to support a project, be it of a role model that they look up to or just being part of a community.
Getting your hand on these collectibles is great but understanding the different intellectual property rights attached to each collection is important.
4. Fans as Creators
Interestingly, fans can play a bigger role than by just supporting their creator on the sidelines.
The NFT landscape has changed and it strives towards providing the NFT holders with the rights to develop a brand with it. Say you hold BAYC #6184, you can develop the brand with a range of merchandise, film, or even books with it.
What Andy Nguyen, a food entrepreneur and the holder of BAYC #6184 did was he experimented it with what he’s good at. He created a restaurant with his beloved ape as the theme of the restaurant. What turned out to be a 90-days pop-up experiment has now become a permanent restaurant.
The Bored & Hungry restaurant runs differently compared to the usual restaurants - entailing different perks for other BAYC holders and advocating the use of crypto tokens within the restaurant.
What about Other Sectors?
Similarly, sectors like finance, gaming, or even how a company works have been redefined.
Finance is no longer just transactions with banks. The power has been given back to consumers to control their own accounts - it’s called DEFI (Decentralised Finance).
Gaming is not about gamers paying to play, rather it is for them to play to earn - it’s called Play-to-Earn or GameFi (Game + Finance).
Decisions within a company are no longer decided by the management, rather it is decided by the community - it’s called DAO (Decentralised Autonomous Organisation).