NFTY NEWS is a weekly newsletter covering the latest developments of non-fungible tokens (NFTs) in the blockchain space – collectibles, games, new platforms, and much more. NFTY NEWS is created by contributor Brian Flynn and adapted from his Medium page. For more information on NFTs, check out Brian’s reading list to get you up to speed on crypto digital assets.
NFTY News #18: NFTs for Minimum Viable Decentralization
OpenSea Marketplace SDK, FanBits Campaign, and Minimum Viable Decentralization with NFTs
What’s next? What will cause the next bull market run? We’re all asking ourselves the same question. Some think it may be a killer dApp with NFTs that behaves exactly like an app. This week I talk about minimum viable decentralization — how centralized platforms can incentivize contributors with digital assets that have liquidity.
But first, let’s dive into some news 📰
OpenSea launches their SDK
OpenSea launched a new set of tools for developers to create their own website-native marketplace for NFTs. Now games & developers can focus more on building dApps and focus less on just their own marketplace.
The SDK gives developers access to OpenSea’s order books so they create buy orders, auctions, and fulfill offers to complete trades. You can even write your own arbitrage bot with the new tools to earn some extra ㆔.
FanBits Anomaly Campaign
This is a non-fungible token experiment worth highlighting. FanBits currently has a collectible campaign for Twitch streamer “Anomaly”. Here’s how it works:
- Anomaly fans need to work together to complete a mosaic by purchasing Anomaly collectibles (donations to Anomaly).
- Whenever a collectible is purchased, a mosaic title is unveiled.
- If they mosaic is completed (all collectibles purchased) before a certain time limit, fans will receive a new secret collectible.
This is super fascinating. Not only are users buying a collectible that act as both an investment & a donation, but they’re also incentivized to evangelizeAnomaly’s brand. Fans want others to purchase collectibles (donating) to complete the puzzle to receive another collectible for themselves.
Minimum Viable Decentralization
John Backus first wrote about minimum viable decentralization here where he says “Keep it Centralized, Stupid.” Bootstrapped networks should not use a token for unneeded complexity but should instead use design principals users are familiar with.
Decentralized networks could test the mechanism design of a cryptonetwork by using non-fungible tokens to incentivize contributions rather than a fungible token. NFTs can be minted by a central entity on an ongoing basis and issued to the contributors of the network. Users could signal they’re a contributor to these networks by having these tokens in their wallets, potentially giving them access to future benefits.
Combining centralized platforms with digital assets worth some arbitrary amount of unique value could bridge the gap between centralized platforms and decentralized networks.
The Anomaly FanBits campaign is one example of incentivizing a network to contribute to the evangelization of a brand.
Here are some other ways we can use NFTs to incentivize network contributors…
Contributing to open source code
If a user contributes to a code base, and the user’s pull request is accepted on GitHub, the user will receive a non-fungible token. Additionally, if the project hits certain milestones, the user will receive a non-fungible token.
Contributing to developer ecosystems
Developers who make an existing network more valuable can receive a non-fungible token. The Kittyverse Furlin is a great example.
Contributing to a registry
In a token curated registry, non-fungible tokens could be used to reward users for contributing to the registry before moving the network to a fungible token. Maybe there’s a medium publication that’s looking for writers. If a user writes an article for the publication, the user will receive a non-fungible token for contributing.
I’m looking to get more involved with a project. If you are working on creative use cases, or working on trying to get more people into crypto and reaching end users, I would love to talk about how I can help. Reach out to me on twitter @flynnjamm, my DMs are always open.