Get a feeling of NFTs and DAOs (WAC Weekly — Dec 15th 2021)
Yes, Web3, there’s that word again. Now, what does it have to do with museums this time? Hold your knickers; you will see.
Empowered by the Tezos ecosystem, Blockchain Art Directory (B.A.D 2.0) and We Are Museums are organizing WAC, a weekly informal conversation that will explore the million and one ways the art community can navigate web3 innovation.
So, What Exactly Is a DAO?
Organizations without a central leader are called decentralized autonomous organizations (DAOs). Using a blockchain as a platform, a community of participants makes decisions from the bottom up.
Members of DAOS own and manage internet-based organizations collectively. A member’s approval is required to access their treasuries. The group makes decisions by voting on proposals over a specified period.
How Does a DAO work?
There is no hierarchical management in a DAO, and it can serve multiple purposes. With these organizations, freelancer networks, charitable organizations, and venture capital firms owned by a group can pool their funds to buy subscriptions to software. You can learn more here.
The ownership of a token is the most common way to participate in a DAO. This gives real, liquid, and equitable ownership to more stakeholders and aligns incentives in new and interesting ways. A DAO tried to buy the constitution at an auction. Defeated by a $43,17 million bid by an unknown buyer at Sotheby’s auction house, ConstitutionDAO lost out on a first edition Constitution.
A crypto community flexing its real-world buying power was perhaps best exemplified by ConstitutionDAO, which has captured mainstream attention. The DAO — a Discord channel of 18,800 users — raised more than $40 million from over 17,000 Ethereum wallets in under a week.
Tokens are created on different Blockchain protocols to represent any kind of digital asset, track its ownership, and implement its functionality according to code. You can store tokens in music files, contracts, concert tickets, or even patient records.
What About NFTs?
Non-Fungible Tokens (NFTs) is what everyone is talking about now. Blockchain-derived digital tokens (like NFTs) are used to store digital media (such as video, music, or art). An NFT can verify a piece of digital media’s authenticity, history, and ownership. Digital creators have been drawn to NFTs in large part because they provide a fair share of profits while giving proper credit to their creations.
Why Should Museums Embrace NFTs?
For art and culture to reach more audiences and generate funds, they need to embrace Web3 and unlock its potential and features. Museums, in particular, will greatly benefit from web3 by:
- Incorporating NFTs and Blockchain technology in events and exhibition environments:
NFTs give artists the chance to live out of their collection by allowing a large number of people to know the joy of collecting arts in a way that goes up and breaks the barrier to access. For example, MopAr’s collection connects communities with antiques via blockchain. Each MoPAr NFT is catalogued to museum standards to honour the history and craftsmanship of each piece.
Museums should improve directories and databases to connect people to NFTs. NFTs have the potential of massively scaling access to culture in solving world problems through suitable business models to free the industry’s fear of dependence on subsidy and philanthropy. a\terHEN, with the support of Immaterial Future, provides an NFT art market that offers accessibility to quality artworks.
- Creating shared community agreement: DAOs provide a way to organize yourselves using blockchain technology. Underrepresented groups can participate in the community through tokens and influence voting mechanisms.
- Creating digital art: Digital copies of art can be made for business meetings, musical concerts to get more engagement from the audience. This serves as a new model of funding. A good example is Women Rise, a unique NFT arts piece. The NFT space will become more diverse and inclusive thanks to Women’s Rise.
For museums to reach and accommodate more audiences and funds, NFTs and Blockchain Technology should be considered. While it’s good to know that some museums are ready to implement, they need to engage the community more.
The Bottom Line
The role of technology as a developmental tool for art culture cannot be overemphasized. With the advent of web3, there is a high possibility of solving most problems and meeting the needs of the industry.
NFTs are an amazing way to give out creativity to people and empower everyone to be part of a big social space. Buying, collecting, and exhibiting becomes easier. It is a known fact that art and culture as an industry isn’t inclusive. But NFTs can make it inclusive by giving a social shift and balance where everyone has a place to fit in.
With NFTs and blockchain technology, the museum becomes more accessible to buyers. This boosts sales of artworks and connects audiences. NFTs create avenues for exposure, raising money for art collections and ownership.