NFTs have opened up a whole new dimension of the economy, with the unique tokens representing digital art and other media. But is this all that is to the tokens? And what about the true ownership of not only the tokens but what finances it brings to the table?
We found out Space Knight Club, an NFT platform that goes beyond just having digital art, but gives total control of 100% royalty funds to its owners, thanks to merging of NFTs with the concept of DAO (Decentralized Autonomous Organization). The Royalties generated from the sales of the platform’s NFTs go to a dedicated royalty fund, where the users can decide and control themselves on how to spend it.
According to the developer, Space Knight Club came about after he bought an NFT of the famous Bored Ape Yacht Club collection. The BAYC NFT gave him membership to the exclusive club, able to take part in different discussions on private channels. But the SKC developer felt something was missing. There was no access to the financial side of the project. As a member of the club, he had no access to the money generated and therefore, didn’t have a say in how it was to be utilized. This is where the Space Knight Club’s idea was born.
The platform takes this in two different but connected steps. First is the Community Vault. NFTs usually carry a royalty, a set percentage of future sales that is transferred to the original creator. In the case of SKC, the royalties (charged at 5%), end up in a dedicated Gnosis multi-signature wallet. The wallet is in the control of not the founder, but the community. This grants them complete control over the funds and they can decide as a group on how to use the collected assets.
The decision as a group is where the second part, the DAO, comes in. DAOs are decentralized communities where the members vote on different aspects of the organization, their vote weightage is based on the number of native tokens they hold. We looked at how this works in the case of SKC.
The Space Knight Club DAO consists of two layers, the Spacewalkers and the Knights. Anyone holding a Spacewalker NFT is automatically granted membership in the DAO. They can then propose different ways to spend the fund or back up other proposals using a secure DAO platform, snapshot.org. 30 votes in the first layer send a proposal to the Knights for the second round. An elite club that is accessible by selective admission only, if more than half of these exclusive members back up a Spacewalker proposal, it is executed.
This is a true implementation of DAO as there is no single authority, not even the founders, that can take control. The community controls and decides on what to do.
Becoming a Knight isn’t easy, as we noticed. Only Spacewalkers who can prove to hold an NFT beyond a set time are only eligible - and only after the Knight members agree to admit the person. Successful admission grants an untransferable Proof of Knight NFT to the new member, unlocking special access to private channels, the ability to interact and meed Knights all over the world, and most importantly, the Knight voting and control system.
Space Knight Club shows that NFTs can be bundled with DAO to give that unique access that other projects lack. Control of the project in a democratic way, absolute ownership of the NFT (including the metadata), the art represented by the NFT, and most importantly, have a say in the future of the platform.