NFT Licenses
Last updated
Last updated
By default, users are typically limited to remixing NFTs they own to create new NFT derivative works. However, to enhance IP liquidity, 1Combo offers diverse NFT licensing methods enabling NFT holders to grant others permission to use their NFTs and create new NFT derivative works. Here, we highlight two such methods.
The optimal solution for maximizing IP liquidity is to tokenize NFT license and then build a decentralized NFT license liquidity market. Among various tokenization methods, 1Combo prioritizes the one based on the Bonding Curve to issue shares of NFT license.
In this approach, the holder or a delegated individual of a specific NFT can activate its NFT Share, allowing anyone to buy and sell shares of the NFT license. If a user purchases a share of a specific NFT, even if they don't own that NFT, they can use up one share to obtain permission to remix that NFT with others to create a new derivative work.
As mentioned above, the sold shares of an NFT can be in two states: unused and used. If we denote the unused sold shares of an NFT as S and the used ones as D, then the price for the next NFT share adheres to the following Bonding Curve formula. Users can freely buy or sell unused shares at the price calculated by this formula.
The first share of each NFT is free and gifted to the NFT holder when its NFT Share is activated. Additionally, each share trade has a 10% tax, of which:
5% can be withdrawn by the current NFT holder. If the NFT holder does not claim the earnings before transferring the NFT, then the new NFT holder can withdraw all accumulated earnings.
2.5% is equally distributed to the current holders of all NFT derivative works created using the share. These earnings also need to be claimed by the holders of the NFT derivative works. If the ownership of the derivative NFT is transferred before the claim, then the new derivative NFT holder can withdraw all accumulated earnings.
2.5% goes to 1Combo as protocol revenue.
Without transferring the NFT, any NFT can be delegated to another wallet by its holder using the Delegate protocol for verification in token-gated applications, such as Token Proof and Collab.Land.
Similarly, 1Combo also supports the Delegate protocol when verifying whether a user owns a specific NFT. This means users can remix NFTs delegated to them to generate new NFT derivative works.
