How to Scale NFTs for the Metaverse
Proxy ownership changes the addressable user base from being capped at 1,000s to an uncapped reach of 100,000s and beyond.
The NFT market is small. The audience size is a rounding error in media & entertainment terms.
Sorry if it hurts to hear that, but when I left Netflix to join BLOCK::BLOCK — I accepted that it would mean moving from an addressable audience of 200M to 0.25% of that — if we’re being extremely generous.
But we’re here because:
The NFT market is early, and web3 is laying the foundation for the future of entertainment.
We started MeebitsDAO to build an open and interoperable Metaverse, built around Meebits as the central avatar for the ecosystem.
Meebits were the first NFT to launch as ‘Metaverse-ready’ and we’re excited to figure out both how to build utility around them, and imagine a future where everyone is running around as their chosen Meebit in the Metaverse.
The current day NFT reality poses some challenges to scalabilty:
- You can’t choose the exact avatar you want if you’re limited by the floor price you can afford
- The absolute limit of ownership is capped at 10k or 20k — so how do you scale to 100k? or dare we say 1M users? — all choosing the same type of avatar?
We’ve addressed these challenges through proxy ownership.
Proxy ownership removes the hard cap on the audience size of any given NFT.
What does that mean?
- We created a pool of Meebits as a SZNS Album
- From that pool people can claim the $MBBT token which represents access rights to the underlying pool of Meebits
- As people buy $MBBT, those funds are used to collectively buyback more Meebits from the secondary market, which are added to the album and owned by the token holders
Moving forward, MeebitsDAO will enable proxy ownership on its projects, such as the photobooth app.
How does proxy ownership work?
- We can use an amount of token to represent ownership of an NFT for a given application
- For instance — with the photobooth app, connecting your wallet and holding 10 $MBBT will allow you to choose any of the underlying 20+ Meebits represented by proxy ownership
- Another example — we can enable Meebits as avatars in a virtual world such as Webaverse so that holding 10 $MBBT will enable a selection of avatars for you to choose from as your own!
- For Founders of MeebitsDAO — we’re going to make it so that the current requirement of holding 1 Meebit to be eligible to vote will be interchangeable with holding 200 $MBBT. This will allow us to onboard additional Founders according to our aim to be inclusive and to do outreach to underrepresented communities.
What’s the difference between proxy ownership and fractionalized ownership — why not just use the tokens on NFTX?
- Fractionalized tokens exchange non-fungible tokens (ERC-721) for fungible tokens (ERC-20)
- The SZNS bundle issues proxy ownership tokens which confer true ownership of the underlying NFTs on a 1:1 basis
In other words:
With $MBBT, you don’t just own the value of the Meebits, you own the actual Meebits
You can buy a share of $MBBT now from the SZNS Album here
We’re very excited about this experiment, but it can be a little difficult to come to terms with the concepts — so please join in our Discord and share your thought on how we can make proxy ownership successful!