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

As the NFT industry becomes more formalized, with major artists, studios and brands involved, the space grapples with how best to protect intellectual property.

For example, Bored Ape Yacht Club maintains strict use of IP and has taken people to court while CryptoKitties uses the NFT license. Until recently, it appeared that NFT projects were attempting to follow the previous IP from Web 2.0, but a different approach has begun to receive more adoption.

  • What is CC0
  • Because the new collections are using it
  • How different licenses might affect performance
  • Examples of derivative products under CC0

What is the CC0 license?

Copyright issues are a constant source of attrition among brands, creators, and the community using the product. With the NFTs in particular, several court cases have already been launched to settle disputes between the parties involved.

An example is “Roc-A-Fella Records Inc. v. Damon Dash”, where there is a dispute over the copyright owner of Reasonable Doubt, Jay-Z’s debut album, as there was an intention to sell it as NFT.

CC0 is the Creative Commons 0, where “0” equals “no reserved rights” on the intellectual property of the project. It is a type of copyright that allows creators to give up the legal interest in their work and make it public almost instantly. When they think about NFTs, owners can take the art on their NFT and use it for any purpose: marketing, editing, branding with it, anything. In fact, this license means you don’t even have to own an NFT from the collection – anyone can use any NFT in the collection, even as a company logo, if they so wish.

Which collections use CC0 and why?

One of the first projects using the CC0 license was Nouns. The idea behind the project was to build a community, and subsequently a DAO, that would promote innovation by using Nouns characters to create derivatives (new projects based on it). They have already launched a sunglasses collection, a LilNouns NFT collection, and have other initiatives that you can follow on their proposal page.

Moonbirds followed a different path. It started with a “normal” license, but in August 2022moved to CC0.

Names and Moonbirds - CC0 project examples

Names and Moonbirds - CC0 project examples
Names and Moonbirds – CC0 project examples

As of August 22, the main collections using CC0 as their distribution license model were:

  • Names
  • Lil nouns
  • Mfers
  • Goblintownwtf
  • CrypToadz
  • XCOPYART
  • cryptocurrencies
  • loot project
  • Lunar birds
  • oddities_xyz
  • terraforme

You can find a more complete list here.

And why are they doing it?

The idea is to promote the project to a wider audience so that they can add value to it. With more opportunities for interaction through derivative collections, original art-related merchandise, and a wider community, interest in the collection grows, to the benefit of its creators and NFT holders.

Hence, assigning the rights to their collection can actually be beneficial for the creators and holders:

  • Creators / DAOs usually still receive royalties on the secondary market
  • Encourages the creation of derivatives, which brings more attention to the original collection
  • Derivatives usually give an airdrop (or whitelist spot) for the original collection holders
  • Creators / DAOs can fund new projects to increase the popularity of the collection by creating a flywheel movement

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

The top 10 NFT collections in trading volume that are not CC0 licenses, over the past 30 days, had a total of $ 168 million, as shown in the graph below.

Footprint Analysis: last 30 days trading volume, USD, top 10 NFT collections
Footprint Analysis: last 30 days trading volume, USD, top 10 NFT collections

The trading volume of the top 5 CC0 license collections over the past 30 days (see chart below) was $ 32 million. This represents approximately 27% of the trading volume for the top 10 non-CC0 licenses.

Footprint Analysis - Trading volume of the last 30 days, CC0 collections
Footprint Analysis: last 30 days trading volume, CC0 collections

We have a total of transactions in the last 30 days for these top 10 NFT collections without the CC0 license, we have a total of 89,177 transactions.

Footprint Analytics - 30D transactions for the best NFT collections, without CC0 license
Footprint Analytics – 30D transactions for the best NFT collections, without CC0 license

Similarly, when we look at the best CC0 collections (graph below), we have a total of 7140 transactions, 8% in comparison.

Footprint Analysis - Core Collections Using CC0 - Number of Transactions
Footprint Analytics – Best Collections Using CC0 – Number of Transactions

The best CC0 license collections already had nearly 30% of the trading volume of the top 10 non-CC0s in the last 30 days, even with 8% of the number of trades. These numbers will increase, as more collections are transitioning to this licensing model.

This isn’t a trend that’s going to fade, especially with a very successful case like the Noun Collection. As Moonbirds also announced their plans to switch to a DAO to oversee and incentivize the use of their logo / branding, this process of releasing copyrights to the collection and sharing direction with NFT holders (the DAO ) is an interesting development for investors: owning a piece of the brand by owning a piece of their collection.

Examples of derivative products under CC0

XCOPY, an iconic creator of NFT, placed his artwork “Right Click and Save as Boy” under the CC0 license in January 2021. This CC0 license has already led to many derivatives.

Derived from Right Click and Save As Guy
Derived from Right Click and Save As Guy

And they are available for trading, giving more exposure to the original artwork.

After their CC0 announcement, there was also an explosion of Moonbirds derivatives. One example is Mournbirds, where the creator explicitly mentioned that the new collection was made possible thanks to the license.

Derived example: Mournbirds
Derived example: Mournbirds

This isn’t a trend that’s going to fade, especially with a very successful case like the Noun Collection. As Moonbirds also announced their plans to switch to a DAO to oversee and incentivize the use of their logo / branding, this process of releasing copyrights to the collection and sharing its direction with NFT holders (the DAO ) is an interesting development for investors: Own a piece of the brand by owning a piece of their collection.

This piece was provided by the Footprint Analytics community on August 30, 2022 Thiago Freitas

Data source: CC0 dashboard

The Footprint Community is a place where data and cryptocurrency enthusiasts from all over the world help each other understand and get information about Web3, metaverse, DeFi, GameFi or any other area of ​​the nascent world of blockchain. Here you will find active and diverse voices that support each other and lead the community forward.

Posted in: Analysis, NFT

Leave a Comment