The past week can be said to be another historical change week in the NFT world.
The first is the news that Larva Labs ( the original team of top NFT CryptoPunks and Meebits) signed a contract with Hollywood brokerage firm UTA, which caused controversy in the NFT investment circle.
Optimists feel that images such as CryptoPunks and Meebit will go mainstream through Hollywood and expand their influence, which will enhance the value of their own avatar NFT.
The pessimist thinks that Hollywood’s re-creation and potential new derivatives will dilute the value of their NFTs. At the same time, Hollywood and Larva Labs’ desire for profit will bring more unpredictable operations, which may damage the cultural status of CrytoPunks and others.
Most NFTs do not contain the intellectual property required for commercialization. This is not news. When the NFT market is rising all the way, no one really pays attention or cares, but the news of Larva Labs’s partnership with Hollywood reminds everyone: Intellectual property may be a shackle that cannot be ignored in the centralized production of NFT.
Also this week, the text version of NFT—Loot—was born. Although it only has a minimalist white text on a black background, it quickly attracted the attention of the big players in the encryption industry.
In Loot, we seem to see a new paradigm of NFT: decentralized Lego modular cultural creation. In the era of centralization, the benchmark of the cultural industry is Disney, and Larva Labs’ approach to Hollywood seems to want to become Disney.
But in the era of encryption, the benchmark of the cultural industry must be a new species that is very different from Disney. What will it look like?
Intellectual property—the shackles of classic NFTs that cannot be ignored
When you buy an NFT, what you get is a token. Its smart contract only confirms the ownership of the token. The cultural works pointed to by the token are often not stored on the blockchain. Smart contracts also cannot cover intellectual property rights, and intellectual property rights need to be confirmed by centralized institutions in the real world.
The creator of the NFT must give the buyer an additional license agreement, otherwise the buyer may even display the NFT publicly as an infringement.
Larva Labs adopted the NFT License (NFT License Agreement) originally drafted by Dapper Labs to define the rights of CryptoPunks and Meebits collectors.
What can be done:
- For personal, non-commercial use
- Use in the trading market
- Use on third-party websites and apps (such as avatars on social media)
- Used for commercial derivatives, but cannot exceed $100,000 per year
What can’t be done:
- Change the work
- Use works to promote and sell third-party products
- Use with content with hatred, violence, and other inappropriate behaviors
- Attempt to register the work as a trademark or obtain intellectual property rights
For CryptoPunks, the top NFT asset, the lack of intellectual property rights has not shaken their cornerstone of value, because their value is more similar to art collections.
The cornerstones of the value of art collections are scarcity, “authentic”, and shared historical status. The 10,000 CryptoPunks have been fully on-chain (Fully On-Chain) to achieve verifiable “authenticity”.
At the same time, the historical moment that the NFT just emerged in 2017 cannot be replicated. So no matter how Larva Labs and Hollywood recreate, the historical status of CryptoPunks will not be affected.
However, inadequate licensing of intellectual property rights does affect the next evolution of most classic NFTs.
Unlike traditional art collections, the classic NFT has a community of thousands of collectors, who could have been an important force for the advancement of Crypto. If this community is not given the right to re-creation, nor does it have the right to operate on a large scale, it will greatly inhibit its enthusiasm for participating in co-creation.
Most great works of art are the products of the times, and it is difficult for artists themselves to always stand at the forefront of the times. If the future development of Cryptopunks stories can only rely on Larva Labs and Hollywood, their value may only be limited to commemorating history.
Community-the evolutionary power of NFT
Bored Ape Yacht Club, born in April 2021, quickly became the top asset in the avatar NFT world after CryptoPunks because of its good use of community power. Unlike CryptoPunks, Bored Ape Yacht Club grants all commercial rights to NFT collectors from the very beginning, which inspires great enthusiasm for co-creation in the collector community.
Bored Apes collectors have created magazines, animations, novels, skateboard series, craft beer brands, clothing brands, etc. based on their Apes. Collectors of Bored Apes have a high sense of identity with each other, so they will support each other’s content or products.
Goner, the founder of Bored Apes, is very supportive of this: ” Anything created by collectors enhances our brand .”
Larva Labs’ new masterpiece Meebits was launched in May 2021. The starting point was much higher than Bored Apes. Its initial auction price was as high as 2.5 ETH, while the issue price of Bored Apes was only 0.08 ETH.
Meebit’s high starting point also means that it only gathers a wealthy community. The rich community is willing to invest capital, but it is difficult to invest a lot of time and energy to recreate around NFT collections, or to communicate and collaborate with community members frequently. Therefore, the social influence of Meebits soon lags far behind the Bored Apes launched at the same time.
As of today, the floor price of Bored Apes is 39 ETH, while Meebits is only 5 ETH. Behind this dark horse counterattack story is the power of the community.
Cultural Lego-a new paradigm of NFT
In the past week, Loot, an NFT project consisting of white characters on a black background, suddenly became the hottest meme in the crypto world.
At first glance, it seems very nonsensical. 8 lines of randomly generated text are listed on a black background without modification. In contrast, the low-pixel image CryptoPunks is simply a high-quality production. It was initiated by Dom Hofmann, the founder of social software Vine and NFT project Blitmap. Each Loot NFT is a set of adventure game equipment, without images and data, free casting, and the first version has a total of 8,000 sets.
In this simple to the extreme NFT project, the great gods of the crypto world have seen the future of NFT, even the underlying construction paradigm of the meta universe.
Tandavas, a well-known NFT investor on Twitter, first pointed out that Loot was disruptive because before it, NFT was a top-down value creation method, and it was bottom-up.
In the previous NFTs, creators designed all the main content and then landed them on collectors. Loot requires collectors to add images, stories, and games to this black background and white NFT to make it truly valuable.
Build community and ecology together
The founder of Ethereum , V God, very much agrees with the concept of joint construction represented by Loots. He said on Twitter: “I think the philosophy of the Loot project is right. Anything created by anyone is an existence and causes different endings. , Is how people continue to build on it”.
AAVE founder Stani Kulechov proposed the concept of Loot-verse (Loot universe), “The entire Web3.0 community is building Loot-verse, what are you doing?” He also changed his Twitter name from Stani.jpg It became Stani.txt.
Loot has built an active community and a rich ecology within a week.
A token called Adventure Gold (AGLD) was airdropped to all Loot owners, and instantly crowned as the currency of the still blank Loot universe. Adventure Gold itself is a game project that has not yet been developed, but because this white token is connected to Loot, it has a market value of 300 million US dollars overnight, which is close to the head meta-universe game SANDBOX.
Projects such as LootRealm (Loot territory) and LootCharacters (Loot characters) have also emerged to fill the Loot-verse with elements such as space maps and characters.
At the same time, many people are creating visual content and scripts based on Loot’s text. There is even a Chinese team that has developed a Chinese version of the Chinese Loot airdrop to Loot holders, which has attracted the attention of the founder of AAVE.
Loot is an almost blank canvas, but it has a huge appeal for people to create, build and spread together.
Minimalist and composability
NFT hardcore player Shenyu believes that the core of Loot is that the blockchain has limited performance and cannot carry too complex applications, so it needs to be presented on the chain in a minimalist way and make it composable.
Loot allows different games and meta-universes to share a set of scalable attributes, creating the lowest level and even cross-chain NFT framework.
Ethereum in the NFT world
When CryptoPunks most fanatical, we understand will often likened CryptoPunks NFT world when its value source Bitcoin , is representative of a culture, NFT OG consensus and faith allowed the cost of a new status symbol.
The emergence of Loot reminds everyone of the early Ethereum. Although it is still only an experiment, it is surprisingly similar to Ethereum.
Researcher VariantFund summarized:
Perfect idea by legend
Interest immediately flooded into an open ecosystem
2017 ICO mania -> Loot derivatives mania
World Computer -> Basic Layer of Metaverse
Objections from Bitcoin players -> Objections from CryptoPunks owners
The earliest adopters receive a return on wealth and have natural incentives to reinvest in the ecosystem
Most importantly, the builders continue to make a lot of cool things
The programmability and composability of Loot give NFT new imagination. Just as many ace projects like MakerDao/Aave have been born on Ethereum, Loot may also have the opportunity to give birth to Maker and Aave in the NFT world.
Since Loot is a new paradigm, the traditional way of spending money to grab scarce NFTs may not be the right way to participate. The founder Dom has always been unwilling to make his project a game for the rich. He said: “People shouldn’t need an NFT to participate in the game.”
This past weekend, he also put his own statement into practice, and added the dynamic supply of More Loot. The project has launched an additional issuance with a tentative upper limit of 1.3 million MLoot, with an additional issuance of 250,000 per year, so that more participants can join the ecosystem at low cost. This move also caused the floor price of Loot ontology to drop, from 19ETH to 6ETH as low as possible.
The encryption age does not require Disney and Hollywood
Just in the past week, we saw two completely different NFT development directions at the same time, one is Larva Labs signing with Hollywood, and the other is Loot launching an open wave of co-creation.
The former represents the traditional cultural industry around intellectual property rights. Larva Labs is becoming more like Disney. On the one hand, it obtains benefits through IP authorization and on the other hand it sells expensive IP derivatives. Their NFT is essentially an IP derivative. The central team creates IP and then uses NFT to turn it into an ownable product.
Loot breaks away from the framework of centralized intellectual property creation. The principle of intellectual property rights is to protect the “expression” (expression) rather than the idea (idea) itself. Loot’s starting point reduces the expression (expression) to the extreme black background and white characters. It is closer to an idea, which gives the whole Loot-verse has designed a mechanism similar to “culture lego” (culture lego), anyone can continue to contribute to Loot-verse based on freely shared modules.
When I was a law student in 2000, there was a copyleft (anti-copyright) movement in the American legal profession that fascinated me. It believes that although the original intention of traditional copyright is to protect originality, its excessive use actually limits the creativity of a society, because cultural innovation is actually based on the extension and mixing of previous works.
The initiator of the Copyleft movement is Lawrence Lessig, a jurist, and the “Code is Law” (Code is Law) that is often said in the encryption industry today was also first proposed by him in 1999.
In Loot, I saw the copyleft spirit again. In the past, many NFT participants just relied on hoarding to earn the money of latecomers, but then each participant should become a builder to add value to the NFT together. Even if casting a Mloot NFT still needs to spend dozens of dollars in gas fees, compared to the floor price, which has once again exceeded the Loot original body of 10 ETH, the threshold for co-creation is much closer to the people.
The recent changes in encrypted assets are dizzying. People are still confused about why the avatar picture jpg can sell for millions of dollars. The text-type NFT has turned out, and the previous NFT has been changed from “popular” to” by oneself. classical”.
At the same time, I see that a main line is becoming increasingly clear: crypto assets are fulfilling its unique mission of social and cultural change. The volatility of assets and the wealth effect are just the masks that it attracts participants. The next star project will always be the most subversive to the existing social and cultural mechanisms.
When I showed NFTs like Meebits to friends in the traditional cultural circle, they felt that the realistic, 3D, and exquisite cultural products were not difficult for them, but when I put Loot on a black background in front of them, they were full The shock, confusion and anger on the face made me feel more confident than ever.
Author: Lily King of the Boundary
About the author: As the general counsel, he works for Asia’s largest alternative investment management fund that manages more than US$40 billion in assets. He will soon join Asia’s largest crypto asset custody platform and institutional asset management platform Cobo as the COO.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/loot-vs-cryptopunks-nft-crypto-culture-battle-of-the-gods/
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