Making NFTs better with Composability
Today we are proud to announce the release of Composable NFTs on KnownOrigin, one of the first marketplace to enable the feature for the emerging crypto art world.
NFTs with broad utility have been a hot topic of conversation in recent months, with artists seeking to increase their project’s appeal through the release of road maps, airdrops rewarding early adopters and collectors as well as further experiments with what tokenised ownership and collecting artwork can represent.
We constantly strive to push forward and innovate: with the release of composable NFTs we have enabled new and exciting opportunities for creators and collectors to experiment and engage with new technologies, fostering new crypto economic possibilities.
What does this mean exactly?
Now, creators and collectors can get creative and experiment by adding further utility to their NFTs by embedding additional digital assets in the token itself.
As an artist, your artwork can act as a vehicle for distributing social tokens or other ERC20 tokens. This allows you to add layers of value and develop different narratives in and around the main artwork. You could also in theory give your work a base price which is intrinsically tied to the value of the underlying composed assets.
For collectors, the composability feature allows you to experiment with bundling together different assets to create bespoke NFT packages. Buying a piece of art based on Bitcoin, embedding some wrapped BTC inside and re-listing.
Imagine a piece of derivative art which is a based on your favourite collectible projects, you then embed the collectible inside the artwork along with the native currency of the project ... the possibilities are endless. 🤯 🤯
We see composable NFTs as a great way to blend utility, new age web 3 crypto-economic primitives, token distribution models and creativity. Generally speaking, we are big on social tokens and think that this provides a valuable avenue to distribute social tokens to an artist’s collector base. Adding additional tokens enriches the artwork and rewards prospective buyers - upon purchase the new owner is able to add additional layers of value to the work before then selling on again.
Only time will tell how exactly creators and collectors will make use of this feature but we believe that enabling additional layers of creativity can drive intrigue and value in the underlying art itself.
What is composability?
We have built a solution based on the standard ERC-998 , which is a draft standard which enables the embedding of ERC20 and ERC721 tokens inside other assets.
Underneath the hood the smart contracts takes ownership of any composed tokens, enforcing rules that only the KO NFT token holder is able to unlock those tokens held within.
Only the owner can embed further tokens and redeeming the underlying assets. The smart contract holds the balances of which are associated with specific tokens.
How does it work?
For the launch of this new feature we have collaborated with acclaimed artist
Brendan Dawes & the
This combination of artist & governance-led community allows Brendan to explore the concept of value through a social token.
The artwork The Composable will include 100 $WHALE tokens composed inside the NFT, ultimately stimulating a far higher overall value than might be projected for the primary artwork in isolation.
The artwork reflects this historic moment for NFTs by including an audio clip taken from the 1968 Bell Telephone Laboratories information film. This audio clip captures the very essence of great potential of this feature.
Many prominent artists have their own (ERC20) social token such as Hackatao, Connie, Skeene, Robness, XCOPY and Mattia Cuttini to name but a few. However, all these artists and others with social tokens have the same problem. Namely, how do you distribute your token to your fans / collectors?
Now with our composable NFTs, KnownOrigin artists can embed their own token within tokens, using their art as the vehicle for doing so! This means that collectors not only purchase the amazing artwork but also have the ability to "redeem" the items inside.
At this point, things get really interesting!
Once the collector buys the artwork they can decide what to do next:
- Redeem all the items inside & keep the NFT.
- Redeem the items inside & sell the NFT as a stand-alone artwork.
- Redeem only some of the items inside.
- HODL both as true diamond hand collectors
Alternately as the collector you also have the ability to add more ECR20 tokens. This is a particularly fascinating
proposition if you are looking to create your own social token or wish to increase the based value by adding something
This is just the first step for composables - the natural progression for this feature will be to allow users to embed other NFTs inside along with the other items. This will be something we explore further down the line, following careful review of the initial usage of Composable NFT features.
We are super excited for the drop on Friday and are eager to see how our community responds to this new and exciting feature.
As ever, we will continue to innovate and experiment with this new tech to provide useful and valuable tools for the NFT community.
The "does art need + utility" debate will continue, but in the meantime we are building the future and taking NFTs to new realms of creativity and functionality.
Join CTO James Morgan, CEO David Moore & artist Brendan Dawes in the
discord for a deep dive / drop party on Thursday 4th November.