One possible feature that we are evaluating for outwave would be to allow creators/artists to crowdfund their projects through NFT.
Each backer could contribute by purchasing NFT, and if the project becomes successful, it will receive % of the project’s earnings in the form of royalties.
To better describe the idea, let me explain it through a uses case:
- An artist decides to launch a new album, and to be able to crowdfund it, he mints on outwave 1000 NFT.
- Each NFT is sold to his fans, and the artists earn enough to start producing his new album.
- The artist asks his fans to lock NFTs in a smart-contract
- Each time the artist performs and earns, he can send a % of the earnings in cryptos to the smart contract. The smart contract will divide the sent cryptos for each backer that has locked the NFT in the smart contract
- Fans will be able to withdraw from the smart contract and unlock their NFTs from the smart contract
This is just a simple use case that highlights the process behind this possible functionality. Clearly, it is the artist’s responsibility to respect the crowdfunding rules by sharing a % of his own income.
What do you think? Got any thoughts to share?
Hi, I like the idea of a crowdsourcing with NFTs, so that fans can feels themself an active part of the project. And recieving a slice of what the artist earns is a positive plus and the only reason for real investors to partecipate… The system as you have described works like a staking system, where the token owners transfer the token to the staking contract that will rewards them with the share of the artist’s earnings ( from the project or album they are partecipating in ). This imply multiple operations to do and costs for the people interested, they have bought the token because interested in the benefits offered by the artist. Why they have to transfer the token to be part of the rewarded ones? What about to implement the earnings share using a “soft staking” system? Using this method the interested people have to hold the nft token in their wallets and, let’s say, every week they can claim the share of the earnings the artist have put in the contract. If they are notinterested in the project anymore, thay can sell the token to others that will start to earn the share from the next split or to the artist him/herself, that can burn the bought tokens so to reduce the circulating amount. In this way the remaining owners will recieve a “fatter” slice of the earnings and the token will be more interesting, from a market point of view, if others exit the project. I have a doubt related to the token used as share reward, it will be the native one, like ether ot matic? Or the artist can choose also other tokens like a stablecoin?
This definitively a very interesting scenario
I think it could perfectly fit the new NFT / crypto age. Btw IMO this kind of feature can be widely adopted only if the process on your portal will be very smooth and easy
Both actors (crowdfunder and potential NFT owner) must clearly understand what they need to do
Do you have any actual aim to implement it?
Live long and prosper
I also think that locking is not necessary: beside being yet another manual operation for the users it limits the circulation of these tokens. Such NFT can be seen as an investment in a preferred artist/creator but like every investment it carries risk and the original invest could eventually decide to pull out of it. With a soft staking mechanism he actually can, selling the NTF on the market and some other invest can purchase it and its future yields.
For payments I would say stables cause users aren’t gonna be necessarily interested in other tokens and stables are easier to understand.