We heard that NFTs are on their way to Leo.
This should be interesting and is now completely open to speculation. To start, Hive does not really have the capability for NFTs at the moment. Without the ability to create smart contracts, teams are hindered on this front.
Of course, the decision could be made to use something like Wax. Or perhaps they will opt to utilize DLUX which is creating the Honeycomb technology.
Personally, I am really excited about the potential of VSC and what will be rolling out there. We might get some more information at Hivefest about where this stands.
Either way, the team will have to decide how to proceed and what the timeframe is, Hopefully they are in contact with the developer of VSC to gain insight into what is being built.
In the meantime, I figured I would toss out the ideas of how I see NFTs working on Leo.
Mint2Earn
The first concept already was talked about on the Leo AMAs.
People are not going to be able to buy the NFTs that are created. This is not a money grab nor a way to raise funds. In fact, there is the possibility that the wild speculation is removed from the equation.
Instead, NFTs are going to be related to activity. It is through the actions one takes which will earn the NFTs. They will be distributed, I presume, when certain levels are reached.
This is a terrific way to generate activity along with providing incentive to the community. It also opens up a host of possibilities.
Access Token
The first characteristic is the Leo NFTs being access tokens.
It is something that is fairly straight forward. The idea is that holding the NFTs grants the individual certain access (or rights). This could be to features on the platform. We see X going in the direction of building value for the monthly fee it charges.
With NFTs, we can use a similar concept except people are not required to pay. Attaining certain levels allows for certain "membership" privileges. This could be access to the mute button, posting of links, or other features that are built.
Essentially, we are looking at creating premium levels but not based upon buying in. Activity is the key to access these areas.
Open Market
That does not mean, however, there is no market for the NFTs.
This is something that people can buy and sell. While the initial roll out is not done via sale, a secondary market could form.
Again, with this concept, the drive is based upon utility more than speculation.
Perhaps someone really wants the mute feature (as an example). If one has the NFTs, perhaps he or she is not all that concerned about it. Under this scenario, perhaps the NFT is sold for 10 or 20 HBD. This allows the buyer to get the utility he or she seeks while the seller makes a small return.
This could keep growing as more features (and NFTs) are added.
Ad Revenue
NFTs could be incorporated into the ad revenue distribution.
Again, this is bringing an entirely new concept to the world of cryptocurrency and NFTs. At present, based upon what we are told, the ad revenue distribution is going to be based upon the amount of Leo Power held. This is a great idea since it incentivizes people to stack $LEO.
Of course, there is an element of purchase to this. While there is nothing wrong with this, we can actually reward the userbase to a greater degree.
NFTs denoting certain levels could be tied to a portion of the ad revenue pool. For example, there might be distribution based upon the top 50 NFTs holders. This could come as a result of the leaderboard, designed to stimulate certain activities.
From here, this entitles the NFTs holders to say 20% of the pool. That is distributed in addition to any revenues warranted based upon LP holding.
Since the NFTs could be time sensitive, it could only be for the previous 30 or 60 days. This ensure that those receiving this portion of the pool are active recently.
It also will be rotating. Having a particular NFT one month might mean nothing. Of course, this could be extended to have both monthly and quarterly NFTs. That way the pool gets broken down even further.
LEO Distribution
Some might wonder why the pool being broken down is a good thing.
Here we have to keep in mind the fact that ad revenue is being used to buy the $LEO token and distribute it. That means we want as many people getting the token as possible. Offering a multitude of ways to get involved will only spread the payments out.
For stability, Leo wants to have tens of thousands of wallets with LP in them. At the moment, we are a long way from this. However, if we have something where hundreds (if not thousands) are sharing in the ad revenue, it will further incentivize newer people.
Another important point is the circular nature of this. As more people are involved, guess what happens to activity? It increases. That will have an impact upon the ad revenue.
This means more money to pay out each month.
Rinse and repeat.
This is the true essence of Web3. We have the ability to get rewarded simply through out action. If one is active, he or she is going to share in the revenues the platform generates.
By creating a multitude of opportunities, people will be able to stake a position through different avenues.
That is how we gain wider appeal.