Interaction of CC0 and NFT

The abbreviation “CC0” stands for Creative Commons Zero, which is an expression of intent that the copyright owner waives the copyright of the underlying work and related rights, and in the NFT ecosystem, the ownership of the copyright of the underlying work can be separated, allowing the owner of the NFT to copy, modify or distribute it for personal or commercial purposes without permission. At one point, the excessive illegal reproduction of artworks during the creation and issuing of NFTs led to numerous copyright disputes and other complications for both NFT projects and the community. During the copyright complications, CC0 NFTs were introduced. The CC0 NFTs did not bind the scope of NFT ownership with proprietary or exclusive copyrights. Instead, it allowed NFT owners to freely utilize digital works for their ideals and goals. Therefore, the incorporation of CC0 with the NFTs expanded the utilization range of digital artwork and led to the birth of derivative works. As CC0-based NFT projects were introduced, new projects with similar concepts are still actively surfacing in the NFT ecosystem.

Data Analysis of CC0 NFT Collections

2022 FP Trend of CC0 NFT Collections (NFTGo.io)

The chart above shows five representative CC0 NFT projects (Nouns, CryptoDickbutts, CrypToadz by GREMPLIN, mfers, goblintown.wtf) and the 2022 floor price (FP) trend by collection. The movement of Nouns, which recorded a high floor price, and the Goblintown (goblintown.wtf) NFT collection, which launched in May 2022 and was latecomer among the five projects showed significant growth, are noticeable. Let’s take a closer look at these two projects and analyze them.

Nouns & Goblintown NFT Collections

In one of the first CC0 NFT projects, the co-founder of CryptoPunks participated in the creation of Nouns, and it was just an experimental CC0 project at the time of the release. However, it quickly gained attention from users with its unique system of donating the auction profits to DAO and its free use of intellectual property rights, becoming one of the most successful CC0 NFT projects, generating millions of dollars as profits. The Nouns easily came to mind as the next blue-chip project, which was once listed for over 200 ETH and reached a market capitalization of 48,000 ETH at its peak, which currently holds the floor price of 35 ETH.

Market Cap & Volume Trend of Nouns NFT (NFTGo.io)

As for the Goblintown (goblintown.wtf) collection, it took on an unprecedented challenge by adopting the strategy of “Free Minting” and “CC0.” The floor price of the collection began at 0 value, but it exceeded 6 ETH within a month of its launch. The project achieved tremendous success, and various derivative projects were also produced such as GFRIEND Goblin and Baby Goblin.

Sale Trend of goblintown.wtf NFT (Post-Mint: 1 Month, NFTGo.io)

Innovative Solution of CC0

The adoption of CC0 (Creative Commons Zero) by the NFT projects has had several impacts on the NFT market. Firstly, CC0 has facilitated the decentralization of intellectual property (IP) and the NFT community’s preferences have altered from licensed NFTs to CC0-based NFTs, which offered more flexibility and overall freedom. Secondly, CC0 has opened a new marketing opportunity for NFT projects. The adoption of CC0 has led to increased exposure and traffic for NFT projects, which in turn has attracted investment and increased trading volume. In addition to the release of secondary derivative projects strengthening the community bond within the original project. Since the growth of a strong community is essential for the success of an NFT project, which drives the overall interest and growth in the NFT collection.

Conclusion

In conclusion, CC0 based NFTs have allowed creators to relinquish their copyrights to the holders. Paradoxically, the decentralization of copyright led to a wider use of IP, which gained fame and highlighted the scarcity, one of the characteristics of NFTs, stimulating the FOMO (Fear Of Missing Out) psychology of ecosystem participants. The increased scarcity and FOMO phenomenon boosted ecosystem participants’ desire to own the collection, and soon the NFT floor prices and trading volume showed a dramatic rise. This solution resulted in creation of new values, such as sales revenue, royalty, and new economic models. Despite the solutions provided by the CC0, there still exists challenges of CC0 based NFTs need to address. The challenges of insufficient control project IP, range of license use and excessive supply from unlimited duplication. However, the solution of the CC0 did help to reduce the relationship gap between NFT project, holders, and the community. It encouraged community participation in the project, which has positioned an important element for the NFT project and the ecosystem.