Important post, which covers a good proposal with thoughtful guardrails, but the discussion has spent more time on liquidity mechanics than I think is useful.
IMO we donât need more supply of NFTs, we need more demand for them. It seems the default way to do this is to try and drum up a bunch of hype and speculation, which is basically what drove the NFT boom before. That relies on bull market energy, spendy whales and hedge funds.
This is a bear market and that was the last cycle. That same toolkit wonât work. Thereâs little to no intrinsic value in the PFP or collectible markets* so they rely on massive community building to keep up novelty, excitement and prestige plus theyâre totally limited to web3 native people and their money.
Letâs be real â if a project doesnât have a competitive advantage in this kind of community building, it needs to find another way to create demand (eg partnering with big IPs) or it should pivot to something closer to real value creation. They have to make something people actually want somehow.
Ticketing, loyalty, gaming and other utility areas that touch web2 are more interesting targets for this because theyâre (theoretically) better at creating reasons for users to stick around and keep the NFTs so theyâre less dependent on a fickle niche market, plus they bring in net new users and net new economies into the ecosystem. This is particularly useful on NEAR because it was designed from the start to be better at onboarding normies than any other chain.
The responsibility for success really goes back to the founders of projects â what is your unique competitive advantage? What are your brand partnerships? How have you created exclusivity and hype in the past? If you havenât, I honestly encourage you to shift gears and focus on solving other problems that tie closer to a real consumer demand. Itâs extremely hard to create a net new IP with enough demand to sustain a market so how can you partner with others to piggyback theirs or to solve a âpicks and shovelsâ problem that helps many others unlock that kind of value for themselves instead? Letâs make sure that anything getting funded can answer those questions too.
Whatâs going to drive this ecosystem isnât manually helping art creators sell out hypey collections, itâs figuring out how to reach millions of new people or generate millions of dollars of real value using NFTs. That requires solving the upstream onboarding problem to make it seamless for web2 people to start playing and solving the downstream utility problem which creates reasons why they should try to play in the first place.
The next crop of billion-dollar companies that flower in the next bull run are going to come out of solving that class of problems and those are the problems that NEAR is best suited to solve. Letâs devote our time, money and creativity to solving them.