The Ethereum (ETH) co-founder Vitalik Buterin and crypto exchange Coinbase co-founder and CEO Brian Armstrong have shared their thoughts on how to improve non-fungible tokens (NFTs), with ideas on how to provide easier access to the tokens, and “nudge” people toward NFTs that contribute to valuable social causes.
“The most important scarce resource is legitimacy,” tweeted Buterin, which was also the title of his March 23 writeup. In the piece he argued that the concept of legitimacy (higher-order acceptance) was very powerful.
The Ethereum co-founder opined
“The concept of supporting public goods through value generated ‘out of the ether’ by publicly supported conceptions of legitimacy has value going far beyond the Ethereum ecosystem. [And] NFTs are one example of a large pool of capital that depends on concepts of legitimacy.”
Buterin also wrote,
“The NFT industry could be a significant boon to artists, charities and other public goods providers far beyond our own virtual corner of the world, but this outcome is not predetermined; it depends on active coordination and support.”
NFTs could help solve chronic and systemic funding deficiencies, said Buterin. But he warned they could also be a missed opportunity, and become “a casino” that benefits already-wealthy celebrities.
The good news, it would appear, is that the public now has the ability to help shape the outcome, given that the attractiveness for purchase of NFTs is a question of legitimacy. Once people agree which NFTs are interesting and which are not, traders will move to buy the interesting ones. Doing so will likely give them bragging rights and personal pride in holding it, as well as granting them resale value.
“If the conception of legitimacy for NFTs can be pulled in a good direction, there is an opportunity to establish a solid channel of funding to artists, charities and others,” wrote Buterin, offering two ideas:
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