Today, we are revealing the project we’ve been working on lately, something that has become our passion faster than we could have expected. We are not publishing the whitepaper yet, as it is still a work in progress, but we want to share the idea itself, as well as some major aspects of the project.
Brave new NFT
NFTs are all the rage these days. Artists, celebrities and, well, anyone, is jumping on the hype train. Collectibles of all kinds are flooding the digital world. Supply grows fast, demand — probably even faster, and this relatively new direction in crypto is moving forward so quickly, it creates a lot of potential problems, or at least — leaves a lot of unanswered questions. Here are some that we think are important — along with our ideas on how to answer them.
How do you value an NFT? It’s incredibly hard, and there are attempts to employ algorithms to determine a fair price. But the price of an NFT, just like the price of any other collectible, is a function of its narrative and social impact. So why don’t we leave that to experts — just like we do in the case of more traditional art?
That’s how we have arrived at the idea of curators. People, who are collecting digital (or physical) items, know where to find them, and are generally doing it professionally.
Naturally, curators should have communities around them, because they are helping these communities get an idea of fair NFT price. But what does a curator get in return? Well, that can definitely be funding. Because curators in many cases would be collectors, and one of the greatest issues for collectors is that they are not liquid. Imagine there is a collection of 100 artworks of one author, of which you own 95, and you’ve spent pretty much all your money obtaining them. Adding the last five pieces to your collection would increase the overall value of your assets by a lot, but where do you get the money? Your only asset is your collection, so it’s a dead end.
So, the community can become a club that actually co-owns these collections together with the curator, and can source certain funds to expand and improve it.
The next big challenge is more about user experience. There is a great number of NFT marketplaces and tools across a variety of different blockchains, and for an average user it becomes incredibly frustrating. What was supposed to be an open, accessible ecosystem has become a fragmented space.
To solve that, we are developing a protocol that will integrate together all the chains and marketplaces within them that have a significant amount of NFTs. The goal is to be able to have a club’s assets anywhere, without a need to transfer NFTs from one chain to another, and provide clubs with a single interface to control, buy and sell them.
And so we come back to the question of value. Naturally, the goal of any collector is to acquire the asset and later on sell it at a greater price. And, as we said before, the price of a collectible item is a function of the narrative and the social impact. And so, it would make sense for clubs to promote their assets in order to increase the value — across different mediums.
Naturally, not every promotion is meaningful or even useful, so the curator would need to approve such activities. The platform will have a mechanism to incentivise such activities, of course.
Long road ahead
We realise that it’s still very early — not just for us, but for the entire industry. As we develop our product, new challenges will arise, but that only makes it more interesting.