What is Utility in NFTs?
Last updated
Last updated
Utility in NFTs refers to the inherent uses that ownership of the NFT conveys.
In other words, what type of rights, benefits and/or rewards does the smart contract underlying the NFT instrument give to the holder of the NFT and what are the terms and conditions associated with these rights, benefits and rewards.
Similarly HoW NFTs will have utility in some of the following ways:
At launch
Proof of Membership - To the HoW community.
Voting & Governance - NFT holders will have the right to vote on proposals raised within the DAO thus having a say in the deployment of development grants. They are also eligible to vote on management structures within the DAO.
Avatar - ownership of our NFTs means that one is free to use the image as their online avatar (profile picture) on their online media platform of choice.
Phased - throughout the development of the project
Special Events - NFT holders will have rights associated with attendance to events based on the tier of NFT held.
Exclusive Content - A limited number of NFT holders will be granted access to exclusive content for insights into how the DAO is run at a strategic level.
Discounts - NFT holders will be eligible for discounts when using other related platforms and service offerings. and Takasure.
Tradability - HoW NFTs will be tradable on various exchanges.
Burn - should it become evident that the demand for certain NFTs are continually low, holders will have the option of ‘burning’ the piece and deferring ownership of another future NFT in its place. Consider the burned NFT a credit to your wallet.
Merging - merging of NFTs to create a rarer single NFT.
Our NFTs will generate funding for the DAO through sales/distribution of our 1 of a kind pieces of artwork. All sales generated less any fees will be deposited to the DAO Treasury wallet under the control of the DAO Community.
In Addition, these NFTs will be tradeable on the secondary market. Proceeds of secondary market sales will be split between the seller of the NFT, the DAO treasury and the Wakala operator (the Operator is responsible for the running of the DAO as an entity. This will transition to the DAO running its own operations at a later stage).
The objective of the DAO is philanthropy using Endowment guidelines.
The tradability of our NFTs enables those community members, who feel strongly about certain functions of the DAO, and wish to participate more in depth, to acquire the voting power, and influence certain strategic decisions, by acquiring NFTs through the secondary market. The alternative for these community members is to become community delegates.
The combined community donations will be strategically and subsequently tactically invested/re-invested in order to, primarily, preserve capital and subsequently generate a RoI. This generated RoI will be used to provide grant funding to shariah compliant disruptive fintech in the Peer to Peer (P2P) ecosystem.
This role will be implemented in later iterations of the DAO dependent on community size and community participation in the governance of the DAO.
Our NFTs will be distributed to our community in return for money that will vest in the DAO treasury. The value at which they will be distributed will be referred to as a ‘ (FP)’.
These are community members who have proposed their function to the other community members and have garnered enough to represent a segment of the DAO community who support a collective sub-vision (a vision/objective within the greater DAO vision/objectives).