The Free NFT: Its Pros and Cons

NFTs or non-fungible tokens are essentially cryptographic assets on a blockchain that cannot be copied or divided. As opposed to cryptocurrencies, they are individualistic and unique pieces. For example, one DOT in your wallet is fungible because if you decide to trade it, you basically receive the exact same thing. A Bored Ape NFT is non-fungible and if you traded it for another Bored Ape, it is still a different NFT. This unique nature has made NFTs a tool of empowerment for many artists, this is because of the sense of rarity and authenticity that NFTs bring to the table. According to Global News Wire, the global NFT market size is expected to grow from USD3.0 billion in 2022 to around USD 13.6 billion by 2027. For the first time, artists and creators can enjoy the fruits of their labor in an ever-growing market.

NFTs do not just benefit artists and creators, the community spawned from their projects is integral. Popular examples like the Bored Ape Yacht Club have birthed strong communities and acquired a high-profile following that includes celebrities, musicians, and the like. With physical meet-ups among members of the community, such communities can only grow stronger.

CCO NFTs bring another meaning entirely to the ecosystem, they challenge the fundamental nature of NFTs but bring a certain impact that will change how we use and view NFTs.

In intellectual property, a creative commons (CC) license is a public copyright license that enables the free distribution of a copyrighted work. The creative commons website further states that a CCO enables scientists, educators, artists, and other creators and owners of the copyright to waive those interests in their works and thereby place them as completely as possible in the public domain so that others may freely build upon, enhance and reuse the works for any purposes without restriction under copyright or database law. For example, an author could give other people the right to build upon a fictional world or universe created in a novel.

CCO NFTs draw heavily from this definition as NFTs collectors can use and build upon NFT in any way they see fit. A major reason for using a CCO license is to increase brand awareness about a given project. Take Nouns, a project that has generated millions in trading volume due to independent projects drawing inspiration from the project.

GoblinTown is another NFT project with a CCO and had lots of traction. Popular examples of CCO NFT projects also include Timeless and Cryptoadz.

The ability to commercialize a given project is a big difference between CCO and non-CCO projects. With a CCO NFT like GoblinTown, anyone can decide to use the NFT in any way they see fit whether it is on a shirt or a logo, without any legal hassle or obstruction.

Non-CCO comes with a lot of restraint and only the creators or owners under a given license can commercialize the project. CCOs bring sustainability to the ecosystem, so think about how many businesses now have the chance to use NFTs on their billboards or merch, such CCO NFT projects are bound to increase in popularity. And its effects will surely be long-term. Especially given how others will choose to build around the project. This sense of continuity will help propagate the values the original project nurtured. A thought also comes to mind that in the event of the death of a member of a non-CCO project or a lack of interest, a non-CCO project could lose its traction and plummet.

Although CCO NFT projects definitely come with their upsides, there are disadvantages to being seen in the open nature of CCO NFTs. Although the CCO license agrees with the direction of true decentralization, there is still a question of what happens when a CCO NFT is used in a way that the original creators did not foresee or agree with. Imagine extremist groups using a CCO NFT as their mascot or logo. Such foreign values being in connection with an NFT could bring disrepute to the creators. Many however agree that CCO NFTs are aligned with the true spirit of decentralization, meaning that in this case, no true central body has control over the NFT, therefore creating a democratic ecosystem for such projects to flourish.