Explore several use cases of the CapsuleNFT Protocol that give artists and musicians power over their own work.
Capsule NFTs represent a new medium that artists can choose to use as their canvas.
A common critique of the NFT marketplace as it relates to art is that there is no inherent value to NFTs. While this critique is contentiously debated, it is much easier to argue that Capsule NFTs do have underlying value. By storing ERC-20 tokens, ERC-1155 tokens or ERC-721 tokens within a Capsule NFT, the resulting NFT now has multifaceted value. The Capsule NFT contains the underlying value of its redeemable tokens as well as the value of the NFT metadata or artwork. Users can decide whether they would rather hold the NFT for its utility and art or redeem the Capsule NFT for the value of the underlying tokens. These choices add value to the Capsule NFT.
The CapsuleNFT Protocol allows for nested NFTs. A perfect application for this could be applied to music NFTs, which could be stored in a Capsule NFT to create an "album" of music NFTs. This approach could be adopted by ordinary users who want to create their own "mixtape" or by professional artists who are looking for a new way to distribute their music and claim ownership over their product.
These ideas were developed by the team, but we encourage the community to get creative and explore new possibilities!