Cryptocurrency

What is CC0, and why will it change the NFT market?

As the NFT industry has become more formal and involved major artists, studios and brands, the industry has struggled with how best to protect intellectual property.

For example, the Bored Ape Yacht Club maintains strict IP usage and took people to court CryptoKitties, on the other hand, NFT licenseUntil recently, the NFT project seemed to try to follow the IP precedent of Web 2.0, but a different approach is now being adopted.

  • What is CC0
  • why the new collection uses it
  • How Different Licenses Affect Performance
  • Examples of CC0 derivative products

What is CC0 license?

Copyright issues are a constant source of friction between brands, creators, and the communities that use their products.Especially in NFTs, some lawsuit It has already been brought to court to settle the differences between the parties.

An example is “Roc-A-Fella Records Inc. v. Damon Dash‘ has a dispute over the copyright holders of Jay-Z’s debut album, Reasonable Doubt, because it was intended to be sold as an NFT.

CC0 is Creative Commons 0Here, ‘0’ means ‘reserve no rights’ on the project’s intellectual property. This is a type of copyright that allows a creator to give up any legal interest in their work and make it public her domain almost instantly. When thinking about NFTs, the owner can put art into their NFTs and use them for any purpose, including marketing, change, and brand creation. As a matter of fact, this license means you don’t even have to own her NFTs in the collection. You can also use her NFT in the collection as your company logo if you prefer.

What collections are using CC0 and why?

One of the first projects using the CC0 license was noun. of Idea behind the project It was to build a community that fostered innovation using letters of nouns to create derivatives (new projects based on them), and later DAOs. They’ve already launched a sunglasses collection, a LilNouns NFT collection, and have other initiatives you can follow. their proposal page.

Moonbirds have taken a different route. It started with a “normal” license, But in August 2022moved to CC0.

Nouns and Tsukidori - CC0 project example

Nouns and Tsukidori - CC0 project example
Nouns and Tsukidori – CC0 project example

As of August 22nd, the top collections using CC0 as their distribution licensing model are:

  • noun
  • lil noun
  • Manufacturer
  • goblin town wtf
  • Cryp Toadz
  • X COPYART
  • Cryptodick Butts
  • booty project
  • Tsukidori
  • oddities_xyz
  • terraform

You can find a more comprehensive list here.

And why are they doing it?

The idea is to promote the project to a wider audience so that it can add value to the project. increases, benefiting its creators and NFT owners.

Therefore, transferring rights to collections is actually beneficial for creators and owners.

  • Creators/DAOs typically receive royalties in the secondary market.
  • Encourages the creation of derivatives and draws more attention to the original collection
  • Derivatives usually offer an airdrop (or whitelist spot) to the original collection owner.
  • Creators/DAOs can fund new projects to increase the popularity of their collections and create a flywheel movement.

Market Comparison: CC0 x Other Licenses (Volume and Transactions)

As shown in the chart below, the top 10 NFT collections by transaction volume that are non-CC0 licenses in the last 30 days had a total of US$168 million.

Footprint Analysis - Last 30 Days Trading Volume, USD, Top 10 NFTs Collection
Footprint Analysis – Last 30 Days Trading Volume, USD, Top 10 NFTs Collection

Over the past 30 days, the top 5 CC0 license collections (see chart below) have traded US$32 million. This represents approximately 27% of the trading volume of the top 10 non-CC0 licenses.

Footprint Analysis - last 30 days trading volume, CC0 collection
Footprint Analysis – last 30 days trading volume, CC0 collection

There are a total of 89,177 transactions in the last 30 days for these top 10 NFT collections without CC0 licenses.

FOOTPRINT ANALYSIS - 30D TRANSACTIONS OF TOP NFT COLLECTIONS, NO CC0 LICENSE
FOOTPRINT ANALYSIS – 30D TRANSACTIONS OF TOP NFT COLLECTIONS, NO CC0 LICENSE

Similarly, looking at the top CC0 collections (bottom chart), there are a total of 7140 transactions, which is 8% by comparison.

Footprint Analysis - Top Collections with CC0 - Number of Transactions
Footprint Analysis – Top Collections with CC0 – Number of Transactions

The top CC0 license collections already accounted for almost 30% of the top 10 non-CC0 transaction volumes over the last 30 days, with 8% of transactions. These numbers increase as follows: more collection We are switching to this licensing model.

this is not disappearing trend, especially as the Noun Collection, has achieved great success. Moonbirds also announced plans to move to his DAO to oversee and encourage logo/brand use, thus releasing the collection’s copyright and sharing its direction with his NFT owner (DAO). This process is one of the interesting developments. Investors: Own a part of the brand by owning a part of the collection.

Examples of CC0 derivative products

X COPYThe iconic NFT creator has posted his artwork.Right click and save as Guy“Under CC0 license in January 2021. This CC0 license already lots of derivatives.

right click[Guy として保存]Derivatives from
right click[Guy として保存]Derivatives from

They are also tradable, making the original artwork more visible.

After CC0’s announcement, Moonbirds derivatives also exploded. An example of this is his Mournbirds, where the creator explicitly states that the new collection was made possible by a license.

Derived Example: Mournbirds
Derived Example: Mournbirds

this is not disappearing trend, especially as the Noun Collection, has achieved great success. Moonbirds also announced plans to move to a DAO to oversee and incentivize the use of its logo/brand, thus releasing the copyright on the collection and sharing its direction with his NFT holders (DAO). Process is one of the interesting developments for investors. By owning part of the collection, you become part of the brand.

Contributors to this work are footprint analysis Community on August 30, 2022 Thiago Freitas

Source: CC0 Dashboard

The Footprint Community is a place to help data and crypto enthusiasts around the world understand and gain insights about Web3, the Metaverse, DeFi, GameFi, or any other area of ​​the emerging blockchain world. Here you’ll find vibrant and diverse voices who support each other and move the community forward.

Posted In: Analysis, NFT

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