Table of Contents
What are NFTs? 🤗
“I see NFTs, or non-fungible tokens, as the future of the creator economy. They use blockchain technology to help creators increase the value of their work and share it with fans in real-time.” — Paris Hilton
Non-Fungible Tokens (NFTs) are a technology that makes digital assets scarce.
NFTs prove the authenticity and ownership of digital assets.
They live on blockchains like Polygon and Ethereum. Blockchains are public online ledgers that record transactions in a way that can't be tampered with.
When someone buys an NFT, they receive a digital certificate of ownership embedded in the blockchain. That person becomes the verifiable owner of the NFT, and no one can alter this after the facts.
This verifiable ownership means that whilst anyone can take a screenshot of an image, they can never be the true owner of it.
This means that for the first time, digital assets can be exclusive or limited in supply as verified on the blockchain.
Why are NFTs so popular? 🧐
Scarcity is what drives the value of NFTs. The rarer an NFT is, the higher its perceived value. This is why it's critical to limit the supply of these assets to exclusive, 1-of-1s at premium prices; or multi-editions of a few copies for a lower entry point.
Utility and community also play an important role. Real-world use cases of NFTs make them more valuable, and a strong community helps support the price and trading volume of NFT projects.
NFTs are so in demand because they allow people to own unique digital items. This comes with social status, the ability to grow a collection, and to re-sell NFTs for potentially large profits.
NFTs allow creators of all kinds to reach their audience directly and earn from their content whilst rewarding their audience like never before.
Why should creators care about NFTs? 😲
For the first time ever, creators can turn their existing social media content into rare assets. No extra effort needed.
A viral Instagram post, TikTok / YouTube video, or Twitch stream seen by millions of people can only be owned by a limited number of people in NFT form.
As a creator, you can decide to turn your top moments into 1-of-1, exclusive NFTs that only 1 person can own at a time. Or, limited editions of several copies for more fans to collect.
NFTs let you earn from your content not once, but indefinitely. You earn the proceeds of each initial sale. And you also get a cut from every single re-sale after that. Ever.
This opens up a new revenue stream for the longer term, so you don't need to rely on big corporations who take away most of the value created by your content. You own it. And your fans can be a part of it too.
This is why creators should pay attention. Melon lets them turn viral content into NFTs.
Viral NFTs = viral content + limited supply & ownership = highly valuable assets 💎
What's in it for the fans? 🥳
“NFTs will become the asset version of social media” — Gary Vee
Your fans can collect their favorite creators' content in NFT form. This lets them become a collector of rare NFTs, which they can show off on their collection page and tell their network about.
Fans can decide to re-sell the NFT to other collectors later on, and turn a profit.
As your reputation as a creator increases, so will the demand and value for your NFTs. This means fans who purchased NFTs will have assets now worth more than what they bought them for. NFTs let you share your success with fans so everybody wins.
Fans can also unlock exclusive rewards from each NFT, which you decide on (called "unlockables").
N.B: fans will not own the copyright to the content itself. When they buy an NFT, they get to own the data that sits behind it and authenticates them as the owner of the NFT.
What kind of rewards can creators attach to their NFTs? 🎁
Creators can choose to attach any benefit for the holders of their NFTs. This might include:
VIP access to an event.
Discount on merchandise.
Entry into a private group, like a Slack community or Facebook group.
Access to the creator via 1-on-1 or group calls.
A physical item included in the purchase.
What makes Melon special in the NFT space? 🥇🏆
At Melon, we observed 5 fundamental challenges faced by the NFT industry today:
1) Incompatibility and fragmentation across platforms.
2) Complicated user experience, poor discoverability for both creators and users, and high barriers to adoption.
3) Lack of utility behind the tokens.
4) High transaction and minting fees.
5) A host of copycat projects flooding the market, with no added value.
In response to the above, Melon is...
Built exclusively for social media creators and fans.
A simple user experience and interface so anybody can do it.
Dedicated support for creators.
More power to creators via a low-free structure.
Hands-off for creators. We handle the whole process for creators we onboard, so you can focus on what you do best: create great content.
Eco-friendly: the Melon platform operates primarily on the Polygon network, a scalable and energy-efficient version of Ethereum.
Utility-driven: most of the NFTs sold on the platform have real-world benefits attached to them.
Selective: we only work with top talent to ensure the highest quality marketplace for social content there could ever be. This makes it easy to discover the best content from top creators, as opposed to the other, saturated platforms.
Interoperable: the Melon platform operates on the popular ERC-721 standard, meaning it can communicate with most other platforms across the decentralized web.
Melon is the first-ever platform to introduce Viral NFTs. We turn viral social content into super rare, valuable digital collectibles. Thanks to Melon, viral social content now has value because it can be limited in supply and owned by a limited number of people only. With Melon NFTs, viral is the new rare!
What about the environmental impact of NFTs?
Melon operates on the Polygon blockchain, a much more scalable and environmentally-friendly version of Ethereum. Because Polygon uses a "Proof-of-Stake" mechanism to validate transactions, there is no energy-intensive mining process involved. Network validators don't need to burn energy in order to solve complex computational problems. Instead, they can create the next block of transactions on the blockchain, based on how much stake they have in the network (how much of the cryptocurrency they own).
Here's how "Proof-of-Stake" blockchains like Polygon compare to "Proof-of-Work" alternatives (source: Polygon).
It's important to also note that NFTs are only a tiny subset of overall cryptocurrency transactions, and are therefore a minor contributor to environmental concerns. For instance, the impact of Ethereum transactions used to buy NFTs is minuscule, compared to overall crypto trading activity, and compared to the largest cryptocurrency Bitcoin (source: Business Insider).
More and more of the energy used to validate transactions on the blockchain is from renewable sources. As much as 39% of the energy used across key blockchains, including Ethereum, is renewable according to studies. These transactions could actually have a significantly lower impact than those of the traditional financial system on the environment (source: CoinTelegraph).
Aside from this, the Ethereum blockchain is due for a major update in 2022 which will reduce its environmental impact by 99%. This will bring its electricity usage down to 1/10,000th of current levels (source: Bloomberg).
A few examples of NFT sales 🤑
Tory Lanez: sold his 7-track album as an NFT. Each copy came with the song and a digital artwork. The 1 million copies, each priced at $1, sold out in under a minute.
DoggFace's viral TikTok: was put on auction for a $500k starting bid.
Emily Ratajkowski: the model sold a picture of herself as a 1-of-1 NFT for $140,000.