The general public has become acquainted with NFTs primarily as pieces of digital art. But the technology has applications far beyond that use case and has continued to evolve amidst losses both in the crypto market and conventional financial markets. A group of NFT aficionados sat down with Roundtable to talk about the present and future of NFTs. In this segment, the panel discusses the applications of second-generation utility NFTs.
Crystal Rose Pierce has observed two distinct models for using NFTs in the governance of virtual communities.
"A good example of this is an open collection right now called Originals, which is Logan Paul's collection. Half of all funds raised are going into the community DAO. The owners get to determine how those funds are spent," she explains. "The other type is like the Whales for Whales projects, and there are a lot of others which are pure play philanthropy. A hundred percent of the money goes into the DAO, which is governed by a smaller group, but you also get access to the community."
Marc LoPresti notes that NFTs' utility aspect won't supplant their value as art, but they will continue to evolve.
"You could see a ticket to a football game itself being an NFT that can also give you exclusive access to certain merchandise or discounts on future games. There's a lot of possibility within the utility of the NFT," he says.
"That's really where 2.0 is going. It's coming out of just one-dimensional JPEG digital art, into something that combines a lot of those utility components. The art still has to be good and compelling, but the utility is changing the game."
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Watch the full discussion below:
Crystal Rose Pierce, Founder, Lighthouse NFT Smart Gallery
Marc X. LoPresti, Co-Founder, IDI Group
Matthew Fellows, NFT Artist, The Zombie Collective