Non-fungible tokens (NFTs) are perceived as “celebrity casinos”, but they can be used for social purposes such as charity and public goods funding. This opinion was presented by the co-founder of Ethereum Vitalik Buterin.
The most important scarce resource is legitimacy. https://t.co/vLCznqP1Lv
– vitalik.eth (@VitalikButerin) March 23, 2021
In a new post “The rarest resource is legitimacy,” Buterin noted that resources and public attention often go to what the majority consider justified. People act in concert if others do the same for their own benefit.
The Ethereum co-founder believes that the perception of the NFT market continues to build.
“Which NFTs are attractive and which are not is the same question of legitimacy. If everyone agrees that one of the tokens is more interesting than the others, then it will be of great value in the eyes of its owner. It will be relevant for those who are ready to pay even more for it, ”he added.
Buterin pointed out that the influence of some opinion leaders like Elon Musk can be crucial.
The co-founder of Ethereum praised the decision of the head of Twitter Jack Dorsey to send the received $ 2.9 million from the NFT in the form of the first tweet to charity . At the same time, he noted the danger of not revealing the potential of non-fungible tokens in the context of society, if the focus remains on the actions of celebrities.
“It’s not a public good for Elon Musk to make another $ 1 million when the proceeds from the sale of NFT go directly to him (to be fair, the Tesla founder has abandoned this initiative). If non-fungible tokens are turned exclusively into casinos for the benefit of such persons, this will not give a positive outcome , ”he explained.
Buterin proposed two options that would potentially validate the NFT as a method for financing public goods. For example, the global fight against poverty, scientific research, open source software development, empowering individual communities.
The first involves the creation of a Decentralized Autonomous Organization (DAO). With the collective approval of its members, it can approve certain NFTs with assurances that a portion of the proceeds from sales will go to charities.
The second option involves the inclusion of data on purchased non-fungible tokens in the profiles of users of social networks. Combined with the first approach, this could “heighten the focus on non-fungible tokens with a social payload.”
As a reminder, the number of searches on Google about NFT approached the level of the ICO boom in 2017 .
On March 22, digital artist Beeple called the asset market a bubble .
Hodlmonks has collected the opinion of several experts on the prospects for the NFT market in the material .