Following a wave of interest in non-fungible tokens (NFTs), Andrew Kang has set his sights on a radically new project. Known for his innovative approach to token economics and decentralized autonomous organizations (DAOs), Kang is charting an exhilarating yet challenging course.
Kang has distinguished himself as a leader at Harvest Finance and SushiSwap, two decentralized finance projects shaping the industry. However, he has shifted his focus from decentralized finance and turned the spotlight on the iconic “Harambe.” The world remembers Harambe as the western lowland gorilla who captured hearts and sparked debates after he was fatally shot at the Cincinnati Zoo. By announcing plans for an exclusive NFT collection featuring Harambe, Kang invites us to reimagine the intersection of technology, art, and cultural symbolism.
One must recognize the practical implications of Kang’s venture. It is challenging to understate the explosive growth of NFTs as a medium for artists to monetize their creativity uniquely. On the other hand, it should be noted that the tokenization process Kang proposes is complex but potentially revolutionary.
“When we started, we thought we could simply buy NFTs, fractionalize ownership, and distribute fractions,” said Kang. However, he came to realize that the situation was far from simple. NFTs, intrinsically unique, lose their ‘non-fungible’ nature when fractionalized. The process would effectively turn them into fungible tokens. Yet, this perceived challenge could instead be perceived as an opportunity.
Kang proposes establishing a DAO to enable collective ownership of the NFTs. In this model, the DAO owns the NFTs outright, and members hold governance tokens representing their share of the DAO’s assets. Kang said, “We propose an iterative model where we’d airdrop tokens to users after acquiring each NFT, effectively giving them a tokenized representation of their ownership.”
The possibilities that Kang is exploring do not end here. He shed light on the idea of tokenizing the NFTs and the revenue they generate. It could involve another layer of tokenization where the rights associated with an NFT (royalties, licensing, etc.) are tokenized and traded on secondary markets.
With all these groundbreaking ideas, Kang stands ready to pioneer a new tokenization era. And whether the NFT landscape is prepared for this transformation, he quipped, “When people start seeing these systems play out, they are going to realize how tremendously powerful tokenization can be.”
