At this point, you’re probably tired of hearing about NFTs. You faintly know what it is, and you have decided it isn’t for you. You don’t have millions of dollars to spend on one, and you are not interested in creating digital art, so why waste your precious time? If I just described you, please give this article a chance, and read through it to change your mind.
The internet is not just a source of information and service anymore. It has evolved to an ecosystem where you are able to create your own value by connecting with others. This is especially valuable to Content Creators, since now new business models like paywalls and subscriptions have emerged. As a result, rather than merely accepting one-time donations, many platforms are moving toward continuous monetization models that enable fans to continuously support Creators.
In this article we will explain how NFTs can be used as proof of continuous monetization by bearing yield, while giving Creators and Fans access to all sorts of new opportunities.
Non-Fungible Tokens, mostly known as NFTs, are used to represent ownership of certain digital goods. “Non-Fungible” is a term used to describe items that are not interchangeable because they have special features. As a result, only one person can own them at a time, and the network they are in ensures that ownership. They feature distinctive identifiers that make it simple for anyone to demonstrate their ownership because they are created using Smart Contracts that assign this ownership and control the transferability of the NFTs.
In order words, when you own an NFT, you own the digital encoding of the image’s origin. For that, they are not just digital art. They can be minted as in-game products, event tickets, academic credentials, fashion, for tokenizing digital and physical items in general, as collateral in loans using DeFi, and as a community building strategy. What most people don’t know is that NFTs can generate revenue to their holders, and also be used as a proof of continuous monetization to a Creator, which means that it is tied to a deposit in a DeFi protocol that allows for a yield to be paid to the NFT holder. This feature can be called yield-bearing NFTs.
This might seem complex at first, but it is similar to a subscription key that rewards its “subscribers” with tokens for every month or year they are subscribed. Yield-bearing NFTs are the product of the marriage between DeFi and NFTs: they are a way of making money continuously through owning an NFT. It is like receiving dividends from your equities. Instead of just holding an NFT until you feel like selling it, you can actually put it to use, and with cobogo, this could even help your favorite Content Creator monetize themselves.
In cobogo, our platform made especially for Content Creators with the mission of giving them power over their own monetization, a Fan can stake CBG tokens in a Creator’s Staking Pool and receive an NFT for that, that will represent their staking position. At the time the Fan starts staking CBG, both them and the Creator they had staked on start getting rewarded in the form of a yield, in a 50–50 split, meaning they can support their favorite Creator without the monetary loss that comes with donations or regular subscriptions.
The NFT received by the Fan contains all the metadata regarding its staking position, including how many tokens were deposited, blocktime in which the tokens were deposited, and which smart contract it is in (specific to a singular Creator). This NFT can be traded on a secondary market like OpenSea, which means Fans can sell their staking position directly to other Fans, including the rewards accrued from the split yield mechanism. Moreover, Creators can stake for themselves, get the NFTs for, say, the 10 staking positions they have, and sell their NFT collection to Fans, so they don’t have to go through the trouble of staking for them.
In addition, this NFT will not only be a proof of a Fan’s continued support for a Creator, but they will also work as keys to access special content or private groups of that Creator, like a membership card that never expires. Creators can use this tool as a way to grow and empower their community, and augment their own monetization as a result of this new economy that would rise around them.
This way, yield-bearing NFTs can be a super interesting mechanism for Creators to launch their NFT collections. With traditional ‘digital art NFTs’, an NFT collection launch is a one-time event, and the artist only gets paid momentarily. This compels artists to launch several collections, if they want to get paid constantly. Cobogo’s yield-bearing NFTs bring new levels of monetization to the table for Creators, since funding is continuous and predictable even after the collection launch. The Creator knows how much they will get monthly, and they only have to launch one NFT collection and have some loyal fans.
If you are interested in learning more about how you can create your own economy around an NFT, visit our website or contact us!
About cobogo:
cobogo is a platform made especially for Content Creators, with the mission of giving them power over their own monetization and their communities, using Web3 to achieve that. It has a unique Staking Mechanism that allows fans to support their favorite Creators while earning rewards, and it allows Creators to advertise their work more effectively.
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