2021 was the year of NFTs. We went from $1B in volume in 2020 to $25B in volume in 2021.
- In recent months, the trends is different
How to avoid the hype & create a strong community? The NFTs that I’m most bullish on all have these things in common:
- The project has been thoughtfully designed and created (either the art or the lore)
- There is a strong community that I resonate with. With that, I mean that there is actual conversation within the community, not just hype, and people seem like people I would talk to at a dinner party.
- Purchasing voluntary credits is a key solution to climate change, financing critical climate-mitigation projects that are otherwise financially non-viable: the rising demand and price create a flywheel effect?
- Breakthrough projects reach financial visibility
- Companies/individuals purchase & retire carbon credits further driving up value as supply shrinks
- More projects become economically viable
- Value rises as retail customers gain access
Let’s be clear. The goal is to 1/ gain experience, 2/ have an impact, and 3/ make money. We are not going to do a 100% non-profit. On the long run, this could turn into a non-profit though. I’ll give more details in the below.
We want to do NFTs for good. NFTs with an actual impact. Vitalik (nldr; founder Ethereum) has wrote an excellent article on
legitimacy and how blockchains can be used for social good.
The Ethereum ecosystem's own public goods funding challenges are a great place to start! But this goes far beyond just Ethereum itself. NFTs are one example of a large pool of capital that depends on concepts of legitimacy. The NFT industry could be a significant boon to artists, charities and other public goods providers far beyond our own virtual corner of the world, but this outcome is not predetermined; it depends on active coordination and support.
He went as far as making suggestion as per how we could use NFTs for good:
- Some institution (or even DAO) could "bless" NFTs in exchange for a guarantee that some portion of the revenues goes toward a charitable cause, ensuring that multiple groups benefit at the same time. This blessing could even come with an official categorization: is the NFT dedicated to global poverty relief, scientific research, creative arts, local journalism, open source software development, empowering marginalized communities, or something else?
- We can work with social media platforms to make NFTs more visible on people's profiles, giving buyers a way to show the values that they committed not just their words but their hard-earned money to. This could be combined with (1) to nudge users toward NFTs that contribute to valuable social causes.
Social Contribution meets web3. Let’s abstract away the capitalistic driven aspect of web3, and use the funds for a good reason. All the while embracing the benefits of web3: