The Core Value of NFTs: Intellectual Property (IP)
In the NFT market, a notable phenomenon emerges: some high-value NFT collections exhibit relatively low trading volumes. For instance, as the chart below illustrates, three of the top 10 NFT collections by market cap recorded zero trading activity over the past 24 hours. CryptoPunks, with an impressive market cap of $1.4 billion, achieved a 24-hour trading volume of just $264,700. In comparison, a fungible token with a similar market cap — such as a meme coin with a market cap of $1.4 billion — would typically generate significantly higher trading volumes within the same timeframe.
This does not suggest that NFTs lack value, just as the absence of transactions for many of Van Gogh’s paintings over several years does not diminish their worth. The true value of NFTs lies not in their trading volume but in their IP value. However, the industry’s exploration of NFT IP is still in its early stages. For example, a specific BAYC has appeared in a Hollywood movie, or certain Pudgy Penguins characters have been turned into toys and sold on Amazon. While these initiatives are promising, the existing barriers between the crypto and traditional markets create inefficiencies, limiting the ability of all NFT holders to participate fully.
1Combo is dedicated to unlocking the full IP potential of all NFTs.
What is 1Combo?
1Combo is a crypto-native Open IP protocol dedicated to unlocking the full IP potential of NFTs through its NFT Share Market and AI-powered Remix tools. It brings NFT holders, Share traders, digital artists, and Combo NFT holders into a unified ecosystem, enabling every participant to share the value generated along the IP value chain.
1Combo has two key components:
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NFT Share Market
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NFT Derivative Works
NFT Share Market
The NFT Share Market is one key component of 1Combo. It enables NFT holders to issue Shares of their NFTs into the market through a Share-to-Earn model, allowing other users to purchase and trade these shares. This process is facilitated through the following steps:
Share to Earn:
After logging into 1Combo.io, NFT holders can activate the NFT Share feature. Activating Share does not lock or restrict your holding NFT; you can transfer your NFTs at any time. These Shares can be freely traded on the market, with each trade incurring a 10% fee:
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5% goes to the current NFT holder.
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2.5% is equally distributed among Combo NFT holders who have utilized this NFT Share.
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2.5% goes to 1Combo as protocol revenue.
Dynamic Pricing Mechanism:
Using the Bonding Curve, the price of NFT shares is dynamically adjusted based on market demand. This ensures fairness in the market while enhancing the liquidity of NFTs.
Pricing Formula:
Share Price = (S + D)² / 20,000
Note:
S represents the number of shares purchased but not yet used.
D represents the number of shares purchased and burned.
Share Price is denominated in ETH.
Incentive Mechanism:
The introduction of the Share Market not only enables NFT holders to earn direct revenue from trade fees generated by licensing their NFTs but also attracts more users to engage with the creative ecosystem surrounding NFTs, thereby generating additional derivative value for the NFTs.
NFT Derivative Works
NFT Derivative Works is the other key component of 1Combo. Using innovative AI-powered remix tools, users can merge NFTs with AI prompts to create entirely new derivative works. These creations, called Combo NFTs, carry substantial value in artistic expression and economic potential.
What is Mint Combo?
Mint Combo is the process of creating a Combo NFT. Users can remix an NFT Share with an AI prompt to generate an entirely new derivative artwork based on the original NFT. The process involves the following steps:
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Select a holding NFT Share, or purchase a Share directly from the Share Market.
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Access the Remix interface, where you can combine the AI prompt with the original NFT to finalize the creation.
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Click “Mint Combo” to mint and generate the Combo NFT.
Economic Value of Combo NFTs:
Combo NFTs not only have inherent artistic value but also enable holders to earn ongoing revenue from the Share trades of the original NFTs.
Innovative Use of AI Prompts:
In 1Combo, AI prompts act as a catalyst for digital creation. Each AI prompt is represented as a “Potion” NFT, which can be merged with the original NFT to remix and generate new works. This innovative approach lowers the barrier to artistic creation while seamlessly integrating the potential of AI agents within the NFT ecosystem.
The image above shows an original NFT alongside its Combo NFT.
Conclusion
1Combo fully unlocks the IP value of NFTs through its two core components: the NFT Share Market and NFT Derivative Works. Whether you are an NFT holder, digital artist, or trader, each participant can find their place within this ecosystem and derive value. With 1Combo, NFTs evolve beyond simple collectibles, becoming a bridge that connects creativity, technology, and economic opportunity.
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