This NFT of a destroyed diamond is the proper microcosm for all NFTs | Boing Boing

This NFT of a destroyed diamond is the proper microcosm for all NFTs | Boing Boing

I stumbled throughout this Twitter thread the opposite day, of some web3 profiteer pitching concepts for the way to extract worth from current manufacturers, utilizing blockchain tokens. Most of them are monetized loyalty packages working beneath the idea that the loyalty rewards would have an exchangeable worth as forex on their very own; or else, they’re simply one other approach for the companies to shift prices to customers by gamifying their externalities.

2. Meta / FacebookUsers earn the platform token by posting and commenting. Quantity earned is predicated on recognition of content material posted. Advertisers pay for advertisements within the platform token.— Tascha (@TaschaLabs) July 24, 2022

5. PepsiPepsi owns dozens of meals & beverage manufacturers & usually purchase new ones. A PepsiCo utility token— which clients can earn when shopping for from one model & spend on one other model— may assist Pepsi develop new manufacturers by leveraging clients from current manufacturers it owns.— Tascha (@TaschaLabs) July 24, 2022
Naturally, I clicked the individual’s profile, during which she boasts that she is the creator of the “world’s 1st destroyed diamond NFT,” which started as one other Twitter thread that … actually, explains all of it fairly completely:

In case you make a NFT of an actual diamond, and the diamond itself will get destroyed in a fireplace tomorrow, you continue to have the identical asset. As a result of the token nonetheless exists and is in restricted provide simply as earlier than. Nothing has modified.What NFT is doing to the idea of asset, few perceive.— Tascha (@TaschaLabs) August 22, 2021
If I make an NFT of 1980 Lando Calrissian motion determine, and it will get destroyed in a fireplace, I nonetheless have the identical asset … proper?


To show her level, Tasha labs did certainly purchase a diamond, destroy the diamond, after which mint an NFT of the diamond on OpenSea. From the itemizing:

I went and purchased an actual diamond for $5k—> destroyed it—> minted a NFT for the diamond. I wished to see how a lot worth the NFT retains.Many do not perceive why this train would work, together with my mom who’s a savvy investor and an accountant for 30 years. I had a protracted debate together with her, which I wrote about right here ( my fundamental concept is {that a} bodily asset like a diamond has worth due to two features:1/ bodily utilities operate 2/ asset operate as a store-of-value (SoV)Once you destroy a diamond and create a NFT as a substitute, you switch operate #2 to the NFT. Since by destroying the diamond, the 1-to-1 mapping between diamond and NFT is cemented, the NFT ought to retain the SoV a part of the diamond’s worth.A NFT can serve the position as a SoV, as a result of it is capable of fulfill 3 fundamental standards for one thing to qualify as an “asset”:1/ sturdiness 2/ restrict on provide 3/ social agreementI additionally assume extra time NFTs will change bodily property like diamond and actual estates, as a result of NFTs are a way more user-friendly asset class for holding and transacting, in comparison with bodily property.

Positive sufficient, Tascha did finally switch her destroyed diamond NFT to another person, for five.5 ETH — which, on the time of sale, was roughly equal to $16,500, although it is presently nearer to half that worth. And to be honest, that may be a worth improve from her preliminary funding! So perhaps I am the fool. Or perhaps this simply additional cements my perception that that is all only a worth extraction rip-off that upholds the inherent valuelessness of government-derived currencies. However hey, I suppose it is a cool concept to skirt across the system?

Tascha’s Destroyed Diamond [OpenSea]

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