How will the CC0 Standard Add Value to NFT Investments?

Following a very rapid popularization process, NFT market was divided into four main categories as games, collectibles, artwork, and utility. Though numerous successful and unsuccessful studies have been put forth in each category, there is still no magic formula for how to add value to an NFT. CC0 protocol, which one of the latest of the various attempts in this field, involves public presentation of the work, completely waiving the authors’ copyrights. The protocol, beyond just being a new marketing method, has the potential to create a general standard and to build a permanent classification, as it is applicable to every category of product on the NFT market.

What is CC0?

CC0 protocol is a copyright standard put forward before cryptocurrencies. CC0, just like open source codes in crypto market, is universal and is not adapted to the laws of any country’s legal jurisdiction. Thus, even if the author using this protocol states that he/she has waived all of his/her rights, if the law of the author’s home country prohibits waiving of certain rights, it is possible that legal claims related to that law may arise. For this reason, it is healthier to accept this protocol as a standard and statement.

Privilege? Accessibility?

NFT owner’s choice on copyright is no doubt strictly tied to his/her marketing strategy and long-term expectations. For instance, one of the most popular NFTs, the Bored Ape Yacht Club (BAYC), created a privileged community so people felt the desire for joining it . By means of this, they have attained a strong place in the market by having a constant demand. Considering BAYC’s strategy, using the CC0 protocol may cause entire image to be destroyed. Thus, this protocol opens the door to different value-adding strategies, as it greatly increases accessibility, although it is not suitable for all NFTs.

Now let’s see what benefits NFTs using CC0 can provide…

• As everyone’s view of events and way of judgment is different, an important gain can be achieved in terms of creativity, regardless of the category of NFT.

Since the creator of the work introduces a new product, he/she actually provides a basis for the subject of the work. The absence of copyright for this product opens the way for work to be quoted or inspired. As a result, the infrastructure created by the original work and new studies built on it can make the work reach large masses. Best example for this situation is the Loot collection, one of the pioneers of the public NFT concept. Only a few lines of definitions written on a black background have led to the derivation of games that read the same lines but produced very different designs.

The leftmost image shows the original Loot NFT. And the other two images are examples of how the characteristics written on this card are designed differently. This example can be varied with a horror movie, remake of Winnie the Pooh, which became available in the public domain after 70 years. As most of us know, this work had previously walked into our lives as a cartoon.

The variety obtained with the work’s spread to the community can provide an advantage in every field where user number is important, since it creates a sense of belonging at the same time. For instance, if we consider that an NFT is branded and an online shopping website that belongs to this brand is opened, the adoption of NFT by the community will automatically ensure that the site gains users. Therefore, in any domain where user number is important, copyright waiver NFTs can be expected to use a CC0-based marketing strategy.

• If it’s free to use, why buy NFT?

Since the person who desires to work on NFT does not need to purchase the NFT using CC0, this method can lead to a decrease in demand. In the Loot example given above, as the games derived from the lines on the card are completely separate projects, they do not have to directly share revenue with Loot etc. other than to contribute to the culture created by Loot. Thus, if such NFTs are not a work of art, they must generate demand with an additional feature. Otherwise, NFTs may not go beyond being a collector’s item.

The most common features of NFTs are DAO formations where NFT holders can vote, management of a fund created by the revenue from NFT sales by these DAOs, access to private discord groups and NFT secured loans. NFTs using CC0 can continue to host these features and sustain to attract demand, and it may become possible to establish much more complex infrastructures as such NFTs are free to use commercially. Since this protocol is recognized in developed regions such as Europe, it ensures that a global standard in terms of regulation is applied to NFTs and thus legal problems are avoided. In the cryptocurrency market where regulations are increasing each passing day, the provision of such a standard may encourage both centralized and decentralized NFT applications to use NFTs with CC0 in their advertisements, business models or reward mechanisms. Consequently, NFT demand can be continued with additional features even if CC0 is used.

• Originality

Let’s suppose a person or company likes an NFT and wants to use it. But this person/company may want to have his/her own designer draw a similar NFT in order not to give a share due to copyright. In that case, poor quality copies of a popular NFT may cause a decrease in brand value. In this sense, CC0 preserves the originality of the product as well. As there is no need to make a copy of a work that is already free to use.

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CC0 protocol, as we have reviewed in various topics above, is a promising trend and most importantly, a trend that can bring a global standard to the market. Public release of NFTs is perfectly in line with Bitcoin’s principles. Thus, the revolution that Bitcoin has created by opening up a more free space in financial world can also be made in the NFT by using CC0. In conclusion, it should be noted that there is still no definite course of action on how to add value to NFTs. Therefore, it should be considered quite normal that there will be many unsuccessful initiatives among the projects using CC0. The point that will move the market forward in the long run is to both open the way for entrepreneurs and protect users, due to the establishment of reliable standards.

Prepared By: Berkay Aybey

The opinions and comments expressed here belong to BV Crypto. BV Crypto cannot be held responsible for any financial transactions made on the basis of this post. Every investment and trading move involves risk. When making your decision, you should do your own research.

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