The path to crypto adoption

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Non-fungible tokens (NFTs) are evolving from a niche interest to a mainstream conversation. The variety of NFT art – from the cuddly to the edgy to the threatening – attracts a new audience of enthusiasts. Beyond art, NFTs offer insight into a new layer of social interaction.

Seen as micro-social networks, NFTs could pave the way for a new form of social media based on creativity, ownership and contribution.

Groups serve as epicenters for NFT projects

Every week, dozens of Discord and Telegram groups appear to support new NFT projects. These groups serve as the epicenter of a project and help people connect and learn about the NFT space. A quick listen to a Twitter Spaces conversation with one of these groups reveals a wide range of people interested in NFTs. Some members are seasoned crypto users, many are new to NFTs, and some have never used crypto at all. For new crypto users, these groups create a more user-friendly onboarding experience that reduces anxiety when starting crypto.

Conversations in these groups reveal a shared interest in digital self-expression and a desire to connect with a community of like-minded people. Community values ​​often form around the quality of the art, the scarcity, and the ideas that align with the emerging energy in the community. Like other forms of social collaboration, these groups tend to have identifiable leaders who are interested in the growth and maintenance of the community. These members set the tone, help the community organize itself, and ensure that the community’s rules are enforced.

Each group establishes their roles, values ​​and codes of conduct – often in a way that echoes the traits or ideas of the animals in the NFT artwork. Ape Island Monkeys share monkey memes, Degen Yetis cheers each other up with phrases like “Haha, Yeti” and CryptoDads share their best daddy jokes. Across the groups there is a shared vocabulary for those in the know. Almost all bands greet each other with “gm”, an abbreviation for “hello” popularized by CryptoTwitter.

And it’s common to see comments like “seems rare” – a tip of the hat or a playful insult to the rarity of an NFT. This type of banter is the lifeblood of an NFT community and, for many enthusiasts, replaces the endless scrolling of Facebook and Instagram.

The world enters the metaverse

The big social media platforms have reached an inflection point. Regulatory concerns over digital privacy and declining user trust raise questions about the future of these ubiquitous platforms. As the world enters a new phase of digital interaction – a place some call the metaverse – users envision forms of expression and interaction that don’t require giving up digital privacy.

Related: Just Buy It: Nike Wants To Bring Sneakerheads Into The Metaverse

NFTs could be a step towards new social interactions, a notion that may not be as far-fetched as it sounds. TikTok recently announced a creator-led NFT collection, Twitter is adopting NFT verification for profiles, and Coinbase is launching an NFT marketplace. These signals point to a mainstream audience that could expand the opportunity to make DTV an important part of our social connections. Big social media will continue to play a role, but the ideas forming in NFT communities are highlighting a new kind of social interaction based on NFTs instead of following and liking.

Utility beyond monetary value

Communities are all vying to publicize the project as this can lead to an increase in the “floor price” – the average value of an NFT in secondary markets. Beyond the average price, the most progressive communities are thinking about how to add value for members through perks and exclusive access. This type of member reward is a great opportunity to add a new utility that goes beyond the monetary value of the NFT.

Related: Beyond the Hype: The True Value of NFTs Remains To Be Determined

The use of treasuries, funded by project income, is growing in popularity as communities seek to implement their ideas. As of this writing, Nouns holds 13,722 Ether (ETH) in its treasury – an incredible amount for a decentralized community built around NFTs. CryptoDads makes beer and CyberKongz is building a banana vending machine that produces, you guessed it, more NFTs. Adding utility to NFT projects dominated by profile pictures and memes can seem counterintuitive. However, as these communities mature, they find creative ways to align action with shared values.

DAOs and the overhaul of governance

As groups find their way into community decision-making, a need for governance has spurred the idea of ​​a Decentralized Autonomous Organization (DAO). The Nouns community is reinventing governance through NFT ownership by empowering members with a “one token, one vote” approach. Members with at least 1% of the token supply can submit proposals on which the community can vote. As the decentralized web takes center stage, DAOs are becoming an important part of the conversation. The combination of NFTs with governance structures appears to be a natural alignment of values ​​that rewards ownership and community participation.

Related: DAOs Will Be The Future Of Online Communities In Five Years

A new social code, fueled by ownership and collaboration, is anchored in the ethics of NFT culture. While the NFT narrative is still young, it’s clear that a social layer drives adoption. NFTs could prove to be the catalyst needed to usher in a new wave of crypto users.

This article does not contain any investment advice or recommendations. Every investment and trading move involves risk, and readers should do their own research before making a decision.

The views, thoughts and opinions expressed here are those of the author alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Nick Casares is the Product Manager at PolyientX. The objective of his work is to help teams at an early stage to discover the product-market fit. For the past decade, Nick has served as a Product Manager, UX Consultant, Startup Coach, and Community Builder.

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