Community-based popular NFTs save the day in crypto winter?

wiredshut2

August 22, 2022

The first wave of NFT holders enjoyed soaring valuations of crypto projects like CryptoPunks and Bored Ape Yacht Club. These NFTs are monetised based on intellectual property rights or copyrights by emphasizing ownership. Several NFT communities gradually emerged as an afterthought surrounding these popular projects. Now, many NFT initiatives are embracing a community-first approach, incorporating incentives and concrete value from the start. Now, cc0 NFTs are increasing, with decentralization giants favouring the open and transparent side of branding.

What are cc0 NFTs?

cc0 stands for “Creative Commons Zero.” Essentially, it implies that the proprietors of the IP rights of digital content surrender all copyright to the public domain. In other words, anyone may utilize cc0 products to produce their work.

A cc0 NFT is digital content in which the intellectual property rights have been waived. In other words, anyone can make a cc0 NFT. Non-holders can also develop commercial items from cc0 NFTs with no legal consequences.

Furthermore, if you utilize a cc0 NFT, you do not have to attribute the original inventor.

The curious case of Loot

Dom Hoffmann, the co-founder of the short video platform Vine, created Loot on August 27, 2021. Loot is an open-source adventurer gear generated and stored on the chain in the form of 8,000 NFTs. Pictured below are some Loot bags: A text file consisting of 8 phrases written on a black background. Interestingly, this text file is also an NFT.

The mint event was hugely successful; all loot bags were sold out. Then, an organic explosion of Loot-based projects ensued around the NFTs. 

So, what distinguishes Loot? First and foremost, these NFTs may be claimed for free. The claimant was just required to pay the regular Ethereum gas price. The second clear distinction is that these NFTs are simply a collection of words.

As simple as it may appear, the NFTs undoubtedly hooked the community. It essentially introduced a paradigm change in the NFT field. Meanwhile, the NFT loot bag initiative is valued by the community. You may use the NFT treasure bags to construct games, avatars, metaverses, and novels, among other things. Similarly, Loot and its 8,000 NFTs can be the foundation of an entire gaming metaverse. 

You might notice that all bets are placed on what the NFTs “could do.” Hence, owning a Loot bag was a bet on future utility, which was up to the community to build.

Now begins the uphill road. Can a decentralized community concur on creating inherent utility in owning a Loot bag? Almost a year after its launch, it is opportune we look at how the humble Loot NFT has evolved.

HyperLoot, which its authors describe as a “visual building block on top of Loot,” is attracting attention. Loot owners join the website using their crypto wallets, and HyperLoot produces an image of whatever is in their bag on the body of a digital explorer. HyperLoot creations, like the original Loot, are distributed under the CC0 “no rights reserved” license, thus placing them in the public domain.

In one of the interviews, Hofmann mentioned that the early hype around the project was only as much help. Initially, in the public domain, the NFTs were mostly reproduced into cheap clones and were not fancied by serious developers.

However, Hofmann predicted that there would be Loot-related novels and maybe the first Loot-related video games in the next year. And when more CC0 projects become public domain, they will almost certainly continue to intersect with Loot in unexpected new ways.

Conclusion

While the dream was that the “free-for-all” cc0 model would coalesce into something more than the sum of its parts, 2022 has been notoriously catastrophic for the larger NFT market. Even the most richly valued collections have witnessed a majority of value erosion.

However, these projects have held up quite well despite the crypto winter. More cc0 NFT initiatives are anticipated shortly. The new trend makes NFT distribution easier by allowing holders to use digital assets as they see fit. Some of the market’s most successful ventures provide cc0 collectibles, which has persuaded prominent artists to accept the move.