I was browsing Twitter and stumbled upon the news that a 12 year old boy made over £290k selling whale NFTs. I didn’t know how to feel. On one hand it’s amazing that a 12yo can monetize his art and be connected to a complex decentralized financial system even before having a bank account in the first place. On the other hand, I don’t really know if these people that are buying his NFTs are really buying because they like the artist and his artwork or are just jumping on the hype to try to flip them. Either way, good on Ahmed! I wish I was making this kind of money at his age.
With the NFT market booming in the past weeks, it is really clear that the majority of individuals are buying these arts just for the sake of not missing out on this bullrun in the hope of being able to flip their NFTs for profit.
At the same time this has been going on, another thing I’ve been noticing is the increasing fear that this house of cards will soon collapse (and hard). A new way of getting rugged, being left out with an illiquid NFT.
The biggest problem of the current state of the NFT market might be the disconnection between fans and artists. This behavior doesn’t seem to be sustainable. So, what I propose in this article - even if just as a reflection - is a way to make Creators protagonists, funding and rewarding fans by using Dev Protocol.
One way to do this is just to add a stakes.social clone into an NFT marketplace. Artists could sell their NFTs like they currently do, but they can also be funded by their fans using DEV.
Dev Protocol developed a unique way to sustainably fund Creators. Patrons stake DEV on their favorite Creator pool and both receive DEV tokens as Rewards. 49% goes to the Patron and 51% to the Creator. In the next few weeks Creators also will be able to use sTokens to offer perks to their Patrons increasing the possibilities of monetization of the Dev Protocol ecosystem.
NFT artists can already monetize by selling them directly on marketplaces and through royalties, it’s really profitable for some artists, some of them are making millions of dollars in the past few weeks. We can’t say that this is the case for most artists or this will be sustainable in the long run. By using Dev Protocol and getting the community involved in the Creative process, the NFT market could be more sustainable and healthy.
Creators can set royalties and collect fees every time their NFT is sold. On Open Sea, besides the 2.5% marketplace fees, for example, a Creator can set Royalties up to 10%.
If an NFT marketplace is developed as a Dev Protocol dApp, these 2.5% fees could either go to the DAO fund to be used on the ecosystem growth or be burned, creating one deflationary mechanism for DEV.
Creator royalties could also be shared with the respective artist sToken holders, this way NFT artists can easily create benefits that can attract stakers. By using this mechanism artists would be monetizing their art in a different way, that doesn’t depend on NFT market cycles.
The current Creator page in Open sea looks like this
Now imagine that we integrate the Dev Protocol ecosystem, the Creator Page could look like something like this
Dev Protocol could be integrated into existing NFT marketplaces that want to differentiate themselves from the rest of the market or it could be developed as a native DEV dApp.
Staking in artists’ pages like this could allow new ways to monetize themselves. By creating a point system where sToken holders who stake in the sTokens on their page, could accumulate points over time, these points could be exchanged for NFTs , for example.
Another way to create more incentives for Stakers would be to hold gated collection launches for sToken holders. There are a lot of ways that Artists can get creative here, my intention was just to show the potential of this market. I hope something like this is developed in the near future, it would be unique and change the NFT market.