2022 is and many NFT projects are launched every day. But it is difficult to know which of them will remain popular after their fall.
Many of them release NFT-proof photos (PFP) – think of them as NFT with images – without a utility attached. And there is no clear plan for the owners of what value they can bring to them other than trade.
It may be easy for project managers to team up with an artist and give up some NFTs, but they will need more technical skills to create their own token and create a management mechanism.
Here’s where Collaboration: Create is coming. The startup is building a set of tools to make it easier for Web3 developers to quickly build some of these solutions.
At its core, the Co: Create protocol provides easy and programmable templates for four critical components of an NFT project: the NFT digging mechanism, its own utility token and management token, DAO, and treasury.
Chris Dixon, general partner at a16z Crypto, has been equated own tokens of NFT projects with websites in the web2 era last year.
You can think of Co: Create as something similar to what Squarespace is for traditional websites, or what Webflow is for codeless applications – and it only cares about the backend for an NFT project.
To make this product, Co: Create and its owner Gesso Labs have raised $ 25 million, led by a16z Crypto, with other partners in the funding circle, such as Packy McCormick’s Not Boring Capital and Amy Wu.
The need for a native token
Bored Ape Yacht Club (BAYC) is one of NFT’s most valuable projects. But there are only 10,000 monkeys, so only a select number of people can be part of this community. To expand his community beyond that, the project’s owner, Yuga Labs, has launched a native token named ApeCoin in March.
While Yuga Labs’ millions of dollars in funding have allowed her to build her own solutions, Co: Create believes her toolkit can make this possible for anyone.
In an interview with TNW, its founder, Tara Fung, said local tokens could help the project involve more people in the community who may not own their NFT:
The idea to create this toolkit was born when we talked about solutions for a specific NFT project. This introduced us to the problems of the community, the decentralization of management and the stimulation of the owners’ ecosystem.
There was no mechanism to allow this. So this was the starting point, the need for a concrete project that provides a fundamental infrastructure for the brands of the future.
When asked about the need for a native token, Fung said it solves three problems in one project. First, it helps expand the community by making the cost of admission more affordable. The minimum price of NFT may be too high for someone to buy, so they can simply buy a token at a lower price than that and become a member of the community.
For example, the minimum price for BAYC NFT is 88 ETH ($ 209,624.89), while an ApeCoin is only $ 9 at the time of writing. So you can buy several ApeCoins to participate in Yuga Labs projects.
Second, the own token can give holders the power to vote on management proposals based on the number of tokens they have on hand. Third, it can be used to stimulate people who can develop experience – such as game developers or commodity manufacturers – centered around the NFT project.
How will this work?
For the start-up phase, the startup works with larger organizations and NFT projects that have their own development teams.
Co: Create builds a protocol that will provide them with a backend infrastructure, complete with APIs and SDKs. It will also provide smart contracts that allow them to create tools such as their own tokens.
Over time, the project will make it easier for developers to read their documents and libraries and get started quickly. In the future, it may bring some elements of the front end to support non-technical users.
In terms of implementation, a project using tools will simply need to make an instance that will allow them to cut NFTs with customized rules, such as specifying how the remuneration of artists and owners will be distributed.
The toolkit will also allow them to launch their own replaceable token, which can be used to pay for copyright or make each holder a member of a decentralized autonomous organization (DAO) that can make future management decisions about the direction of the project.
Projects using this protocol will also receive a $ CO token based on their NFT trading volume and values. They can use this token to vote on things like what features Co: Create needs to work on and what partnerships it needs to invest in.
Fung said it aims to be an open source protocol so that projects can work directly with the company or branch out its code.
To create value, he plans to place some of the $ CO tokens on the open market so that supporters can purchase them and participate in the design of the protocol.
Currently Fung & Co. conduct interviews with many projects to understand their needs: what blockchains they want to have their NFT, what management and voting functions they would like in their DAO, etc.
Dixon said the protocol would help the project build some of the most challenging components of the NFT project:
We are just beginning to assess what a motivated and committed NFT community is capable of. The Co: Create protocol puts the creators on the right track to design and deploy the most challenging components of successful NFT communities.
The company will launch its full site this summer with developer and library documents so developers can test them. Later in the fall, the company intends to launch its first set of NFT partnership projects.
The initial version of the protocol will support all blockchains compatible with Ethereum Virtual Machine (EVM), such as Polygon, Binance Smart Chain and Avalanche. But over time, he aims to be a chain agnostic in order to accelerate NFT projects, given decentralization.
Read more about the startup plan in theirs White paper.