A new creator economy is emerging, thanks to the sudden and meteoric rise of NFTs in 2021.
After the digital artist, Mike Winkelmann, known for creating “Beeple” sold a composite of 5,000 daily drawings at the world-famous auction house, Christie’s for $68 million, creators everywhere started to see the potential of NFTs as a way of generating income.
NFTs (Non-fungible Tokens) aren’t exactly new. Since 2017, an impressive $168 million has been spent on them, after they were first created using the Ethereum blockchain in 2014. So, before we dive into the value of NFTs for creators — and their newer more agile cousin, F-NFTs (fractionalized non-fungible tokens) — let’s recap what these terms mean.
What are NFTs and F-NFTs?
An NFT is a non-fungible token. Although built using the same technology underpinning cryptocurrencies, such as Bitcoin and Ethereum — blockchain — there aren’t many other similarities.
Cryptocurrencies, in the same way as fiat currencies (such as the US$ Dollar or GBP£ Pound) are meant to be “fungible”. This means, it can be traded. One type of currency can be exchanged for another. Or traded for stocks and shares, goods and services, gold and diamonds, petrol and someone else’s time (labor, skill, etc).
Something being “fungible” means that one dollar will always equal one dollar, even when the value of what you can buy for currency changes over time. We have inflation to thank for that.
On the other hand, NFTs are different. NFTs are inherently not fungible; hence the term, non-fungible token. Every NFT (or as we go on to explain, F-NFT) has a unique, cryptographically secure and impossible to change digital signature, created using a publicly transparent ledger, known as a blockchain.
When a new NFT is created, also known as being “minted” or “mined”, on the Ethereum blockchain (although other blockchain’s now support them), the signature associated with it is unique. It can’t be changed — and neither can whatever is attached to the NFT, such as a piece of art, intellectual property (IP), digital asset — or even a physical asset. One NFT is not worth the same as another, even if they are sold for the same value. Every individual NFT is unique.
An F-NFT is no more or less unique, nor any less non-fungible. Fractionalized non-fungible tokens (F-NFTs) are fractions, or percentages, of a whole NFT, and the asset connected to that NFT. It’s simply that ownership is broken down into a percentage, similar to owning shares in a company. No shareholder owns the whole company; everyone is issued with a percentage of that ownership, in the form of shareholdings.
What do F-NFTs mean for the creator economy?
As a creator, or owner of creative works, you’ve got enormous potential to monetize these using NFTs. Whether you’ve created videos or digital art, poetry or paintings, there’s a world of eager potential buyers wanting to own your creations.
Or say you are a gallery, owning works of art that could be monetized more effectively. Look no further than the crypto world, a community full of eager buyers. Some will spend millions on art, culture, and creative works.
However, there’s a much wider group of people, in and outside of the crypto community, equally eager to purchase art and creative works that don’t have millions to spend on art.
Is there a way creators and asset owners can monetize what they’ve got to a wider audience?
Yes, there is, thanks to F-NFTs.
What’s the role of DEIP in the creative economy?
With DEIP Token, a blockchain-based solution for creators, intellectual property, tangible and intangible asset owners, creators can reach a much wider audience wanting to buy their work.
DEIP is a creator economy protocol. Built using Web 3.0 concepts, on the blockchain, complete with tools and applications for the creator economy. Now creators can leverage this technology, tools and applications to monetize their work using F-NFTs, ensuring more people than ever can own a percentage of a digital or physical asset.
Instead of trying to sell something for $1 million; you can make the same amount selling 1,000 F-NFTs for $1,000 each.
Creators and Intellectual Property Rights (IPR) owners will benefit from much wider monetization potential of assets, thanks to blockchain-based and Web 3.0 technologies. Ownership will be recorded on unalterable, cryptographically secure, transparent and traceable decentralized public ledgers. DEIP is designed around an open-source DOA-based governance model (decentralized autonomous organization). Making it easier for creators to divide ownership into F-NFTs and manage them using smart contracts.
DEIP is open to any member of the creator economy, company or organization wanting to monetize assets, work, and IP. Anyone on the platform can create open-source portals, focused around specific themes or assets. DEIP Constructor offers a low and no-code mode. Once you’ve created a suitable portal, creators can monetize assets using licensing tools, a marketplace, NFTs/F-NFTs, and smart contracts to automate generating income through royalties.
Now with NFTs and F-NFTs, creators can make more from their hard work, talents, and time spent learning their craft. F-NFTs make art, creative works, and intellectual assets more accessible to everyone. For the creative economy, the future has arrived.
Guest post by DEIP Token, a blockchain-based provider of multi-chain infrastructure (including F-NFTs) for a decentralized creator economy. DEIP is the future of the creator economy. A blockchain-based Web 3.0 technology solution for creators, intellectual property, tangible and intangible asset owners to monetize and generate liquidity using NFTs and F-NFTs.
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