Bits: Adaptable NFTs
Lil Miquela hints at an NFT that adapts with time, collection and engagement
With Lil Miquela dropping 1500 free NFTs today, it felt fitting to write about what makes creator-led drops so exciting. That is, these NFTs represent the rare direct creator-to-consumer interaction, and can be priced accordingly (millions of $$ to literally free!). That makes these interactions accessible and thus powerful — creators can now tier and reward their fans at any time in many ways.
For example, an early fan may be rewarded with a valuable creator item, or the chance to own a % of a creation’s revenue stream. That would mean the fan may actually see ROI positive investment opportunities for having discovered and supported this creator early. Moreover, the fan would then be incentivized to promote that creator. Here, an NFT creates a win/win where early fans and creators both accrue value as the creator succeeds.
Another example, which is more likely to be the norm for a known creator like Lil Miquela, is incentivized engagement. Creators can issue NFTs to their fans and then reward them for additional engagement like holding for X period of time, collecting related tokens, IRL challenges such as going to a concert, etc.
These types of engagement actions could potentially lead to “leveling up” that NFT. Leveling up brings another dimension of scarcity to NFTs. An NFT might drop to 10k fans, but only 500 can complete the challenge. Now, those 500 actually have NFT2.0, which is 20x more scarce. That means, for their continued fandom, they have an asset that is now 20x as valuable. That dynamic could be deployed iteratively to segment out your superfans with intense gamification if a creator so desired.
Lil Miquela’s post alludes to these benefits by referencing a “larger puzzle” and “each piece will work together to tell a special story over time”. Collecting, time, engagement all seem to be in play with this drop.
I cannot wait to see what type of creativity this unleashes for creators and fans — my sense is the most exciting NFTs will have multi-dimensional aspects (they exist in multiple worlds and/or IRL).