If there isn’t already, there should be an NFT platform comprised of billboards.
The NFT will be a digital image of a blank billboard, to be populated by a billboard ad, at a later date.
Underlying Economics
The set of NFTs will start at 100 billboards, with very minor characteristic quirks. The point isn’t to sell unique looking billboards, but rather to sell the billboard as advertising space that could eventually, potentially, be displayed alongside other NFTs.
With traditional billboards, you have companies paying the owner of the billboard a certain amount to display their advertisement for a pre-negotiated time frame. After which, the advertisement is taken down so that another company may choose to pay to post their advertisement (or perhaps the same company choses to extend that contract).
With each Billboard NFT, the owner will have a say in the parameters of what kind of advertisements may be posted on their billboard, and will receive a portion of the fees paid by the company to post their advertisement. The breakout would go something like this:
At the end of every month,
- 40% of the proceeds go directly to the owner of the NFT,
- 35% of the proceeds are distributed to all owners of a Billboard NFT (based on revenue contribution),
- 25% of the proceeds are withheld, to be used to fund operating expenses of the Billboard NFT platform.
Regarding the 35% distribution, the allocation to the Billboard NFT holder will be based on the weighting of that NFT’s advertising revenues generated for that month. So, if all Billboard NFTs generated $100 of revenue for this month, and my Billboard NFT generated $25 of revenue, then I would get 25% of this portion of revenues ($25/$100 * 35% * $100). Alternatively, if I bought a Billboard NFT and just sat on it without having an advertisement on it (i.e. monthly ad revenue = $0), then I would receive $0.
With this 35% distribution, naturally I would imagine there may be some freeloaders/bad actors, but this would incentivize Billboard NFT holders to help and support each other.
Operating Expenses
So what would the 25% of proceeds be used for, exactly?
Firstly, the Billboards NFT platform itself would actively seek out companies to engage with Billboards NFT owners to advertise. I would imagine there would be a forum where, should a company express interest, a platform representative will ask the owner community who would be interested in presenting their NFT as ad space. Perhaps the NFT owner who held the longest will be given priority.
Secondly, there will need to be someone for the community to hire to review and codify the contracts.
Lastly, there would need to be some amounts set aside for future developments/projects within the ecosystem; namely…
DAOification and Tokenomics
… converting this platform into a DAO. The community aspect of the 35% total owner distribution already has the echoes of a DAO; it would only make sense to formalize this with a true DAOification with a platform-specific token.
This token could be staked for some redistribution of the excess from the 25% revenue withholding minus expenses.
However, other tasks, like marketing professionals in the community making introductions of companies to the platform, or participating in the decision making processes of the platform, or reviewing advertising contracts, would need to be repaid in the form of tokens.
