This post includes updates to the Open3 Collective knowledgebase and sent via email to members.
The one takeaway for this week’s update
This is the MNTGE landing page. NFTs attached to items is rapidly gaining traction, but what is interesting is that the vintage physical item that MNTGE ( https://www.mntge.io/) digitizes into an nft can continue to accrue future experiences tracked on chain that are immutable which will add to its legacy, lore and possibly value. We’ve imagined this potential for web3 for awhile now, but this is the first instance I have seen for using web3 infrastructure to track experiences tied to a physical item rather than a person. The reason why this is important is because it helps prove the authenticity of items, where they have been, what previous owners have done with them, all of which increases their transactability online. And transactions is not just limited to buying and selling anymore. With web3, it is a lot more, including:
- borrow them
- lend them out
- shared ownership with others
- fractional ownership with others
- token ownership (Instead of owning a product, using a service or having an experience, consumers now can own, share, and trade the images of items, experiences, and services – paired up with a proof of ownership)
- borrow against their value
- lend out against their value
- earn royalties from
- insure them
- prove ownership of
- guard against counterfeits
- get specific benefits as an owner from another user or entity
- prove an action performed
- help describe the owner, who they are, what they do, what they like (based on what they do and what they own).
- can be dynamic, and not static, and accumulate features, qualities, and/or histories that change their value, utility or their story, all of which can be used as signaling to which others (people, technology apps, systems, metaverses) react.
To see all weekly takeaways published to one document, click here.
Key Tools Changes/Additions
- Added to tool “Other_technologies_enhancing_web3” vendors for generative AI in categories including marketing copy, images, graphic design, code completion, voice overs and vide editing, and OpenAIChat uses.
- Added a section titled “Reduce Resource Consumption, Reduce Operating Costs and Help Make Operations more Sustainable” to the tool “What is Web3 and Why Important For Consumer Brands”.
- Added a section titled “Generative AI Use Policy” to the tool “Other_technologies_enhancing_web3” covering some basics about using generative AI so that it does not infringe on intellectual property rights.
- Added link to a basic database schema for tracking generative image runs and saving images, their prompts, seeds and other important data. It is in the tool “Other_technologies_enhancing_web3”.
- Added a section for product ideas titled “Vintage/Used/Secondhand Apparel” to the tool “Web3_Strategy_Framework”.
- Added category list of generative AI tools in how they might be categorized, to the tool: “AI_technologies_enhancing_web3”.
- Added following to the tool “What is Web3 and Why It Is Important For Consumer Brands”: An NFT is not just a JPG. When it comes attached with wonderful memories, both big and small moments in time, its takes on a different meaning for people and becomes worth collecting. A brand can use the NFT as a way to immortalize the experience.
The above are key updates to consider. Go to the web3 market intelligence database to see all.
Notable Market Intelligence Updates
- MNTGE is bringing vintage to the blockchain Discord link. This is an interesting concept on taking vintage items, digitizing them carefully, and using web3 infrastructure to allow future experiences to be attached to the item.
- Web3 has a branding problem. It’s not just semantics Discord link. There are image issues with NFTs, web3 and crypto. Some brands are replacing NFT with digital collectible, which to me is limiting because NFTs are obviously much more with utility. As stated in the article, it is better to move beyond the tech and towards the outcome it provides.
- Instagram 2023 Trend Report. Discord link. Takeaways for me: DIY with creating your own, side hustles, experimentation, doing things IRL.
- Warner Music Group to Release Polygon Music NFTs Through LGND Platform. Discord link. With respect to wallets, the platform will custody the assets for users or users can connect a wallet. This makes sense and is a good move to start out, since wallets are currently a real barrier to growth.
- Reddit Users Have Minted More Than 5 Million NFT Avatars on Polygon. Discord link. This is significant but not really understanding the value here. These are just NFTs that are being traded and not offering anything more than as a collectible; not utility. Without any utility I wonder how long this trend on reddit will last.
- Nick Knight’s first NFT drop could bridge the fashion-Web3 divide. Discord link. This feels like a traditional NFT drop and nothing that interesting, except: 1.Nick Knight has for a long time been a fashion industry heavyweight pushing the boundaries with technology and creativity; 2. Revenues are being shared across all the creators, which I guess is a departure from how fashion does it now, so that is good; 3. The article mentioned that luxury fashion does not tolerate failure, yet Nick cares less about failing on this project because he wants to be more like tech companies, failing through iterations to eventually get it right.
The above are key updates to consider. Go to the web3 market intelligence database to see all.
Forward Guidance
There is a lawsuit going to trial between Nike (plaintiff) and StockX (defendant), which seeks to prevent StockX from using any likeness to Nike in the NFTs that StockX creates to represent the physical sneakers it has in inventory. The NFTs are used to reduce friction of StockX marketplace transactions. If Nike prevails, would this extend to chilling the potential for consumers who own any branded product from creating NFTs behind what they own so that they can use in web3? We hope not but will have to watch this case.
There is a case before the Supreme Court that will finally look at Section 230 of the Communications Decency Act (CDA) that allowed “interactive” online platforms such as forums and read-write webpages to gain immunity from any content posted by users of the platform. If the outcome of this case revokes or changes section 230, limiting free speech on platforms, that will not necessarily move people to decentralized web3 platforms that have no central authority. As we have already see in the Tornado cash sanctions and the Canadian governments trucker sanctions, governments will go after anyone remotely connected to a decentralized app. We don’t want hateful or harmful information or actions, but we also don’t want for centralized platforms or authorities to tread on people’s liberty, which happens all the time and while on the surface is a good argument for decentralized platforms, does not mean they will be any better than centralized platforms.
See all forward guidance published to one document here.
