Footage.Farm

The NFT Backed By Revenue

I'm not a collector --- okay i said it.

I think NFTs (non-fungible tokens) are cool...but I'm not a collector. I just never was able to buy stuff like that, but I have always been into creating things that can make revenue, for example, digital assets like stock videos where people pay me for each use.

This is why I really think NFTs backed by licensing fees is so epic! Using the NFT as an unbreakable representation that is unquestionably bound to the digital asset's revenue source would give an NFT a higher level of ownership. We could now assign value to an NFT based on past performance and future income generation. NFTs would be backed by the revenue they create and give investors confidence to invest in these future returns as an active dividend payment would be the reward in perpetuity.

Hence let's call this the dawn of "aaNFT" ...where the aa stands for 'Accuring Asset' as this asset has a real revenue stream attached to it that is paid in perpetuity every year on the anniversary of the asset creation timestamp. Now I'm interested in aaNFTs a ton, this is something that can make me money and I can promote? Get long and get loud!

Mission

NFTs backed by revenue producing stock videos.
Linking real licensing fees from digital assets to each NFT.
Now you can invest in a long term profit generating NFT.

How It Works

  1. A stock video is registered as an NFT and released to the public for sale.

  2. Owner of NFT at creation date anniversary each year (in perpetuity) collects 95% of the licensing revenue. (5% is to cover administration and network fees.)

  3. Yearly dividends are paid out in ETH to the ETH address associated with ownership of the NFT. So let's call them aaNFTs (NFTs that are an accruing asset that pay a yearly dividend).

FAQ

  1. Why would I want to own an NFT that is an active stock video on Pond5.com?

  • Because you like the video and think that it will be licensed a lot and you will make good money on it over the long run.

  1. How can I trust you are going to pay me 95% of the revenue?

  • You'll have to trust that I can create a smart contract that uses the Pond5 API or a trusted 3rd party oracle (like a chainlink command) within 1 year from the creation of the NFT. Otherwise the 1st year will be a manual method and I will release full audits verified from Pond5 AND a trusted 3rd party.

  1. How do you convert the USD that Pond5 pays you into the ETH that you will pay NFT hodlers?

  • This is also an oracle lookup that will be automated where the script will execute at the exact yearly anniversary time to calculate the earnings and make the transfer from an account with USDC (USD stablecoin) through an AMM exchange like Uniswap into ETH and then the payment is made to the associated ETH address of the NFT hodler.

  1. How many NFTs are you going to release for each video?

  1. What is your Pond5 artist link?

  1. How much can I expect to make each year?

  • Depends on how popular a video gets...if a lot of people want to use it then it can make very good money, as the price to license each time is $399 USD in many cases. Also these videos are in 5.5k resolution, so you are future proofing yourself for the next 10 years of video catches up to higher standards like this.

  1. How many of these will be released?

  • This is a very limited and exclusive collection of about 50 videos total with some of my favorites to be released immediately. ALL NFT RELEASES WILL BE FOR 1 AND ONLY 1 ASSET.

  1. How did you create these videos?

  • Thanks for asking...Well for exciting aerial hyperlapse footage, you need to take a picture about every 4 seconds to be able to have the shutter open for the 2 seconds to get enough light to encourage that active blur effect. I'm a licensed and expert drone cinematographer and was using a DJI Mavic 2 Pro to capture the highest quality RAW image format photographs and then encode the video in Apple ProRes 422 HQ the highest quality look possible.

  1. What other technical things di you have to do to make these videos look so cinematically superior?

  • Thanks again for asking, you are too kind...well this small batch craft video creation uses post production techniques that include; color correction, image optimizations, and video stabilizer algorithms all adjusted manually to make each clip nearly perfect.

  1. Why did you make these?

  • I though the subject matter of hyperlapses over cities and combining that with the natural cycles of sunsets and moonrises was a really edgy way to push drone cinematography as each video attempt leaves you with nearly 10 seconds of footage, so the timing and angles you need to sync up with are complex and hence worth doing.

Next Generation Automation

For now I plan on manually calculate payouts for the 1st (and only the 1st ) year anniversary, after that the plan is to fully automate the valuation and the dividend payouts. The goal should always be for full transparency and verification even if we have to use centralized systems like Pond5 to trust them to not be skimming sales. That vendor trust will eventually be sorted out as a 3rd party auditor or even as a new decentralized marketplace takes over as the real arbiter of truth, but until then we must leverage the current leaders in the digital asset marketplace so artists can start building trust with their new investors. Below are some ideas around what this would take, I think it's very doable.

High Level Requirements

  1. Use an official API from Pond5 that gets a video clip's metadata and PAST sales data and uses that data to create a public oracle entry on Chainlink. (let's call this variable ChainlinkAssetPastData)

  2. Create a NFT auction listing that pulls the video clip's Chainlink oracle data directly.

  3. Use an official API from Pond5 that gets a video clip's metadata and LAST 1 YEAR sales data and uses that data to create a public oracle entry on Chainlink. (let's call this variable ChainlinkAssetLastYearData)

  4. Use Chainlink oracle to convert sales data from payout in USD to payout in native NFT ecosystem currency (ETH or BNB, etc..) (let's call this variable ChainlinkAssetLastYearData.ConvertedCurrency)

  5. Create payout channels for yearly dividends in the native currency using a payment oracle on Chainlink. (let's call this variable ChainlinkAssetLastYearFinalNativePayment)

  6. NFT Hodler at the exact 1 year anniversay of the NFT creation get paid 95% and the NFT creator (me) gets the other 5%.

There is probably a dozen ways to design and implement this, and I am just using Chainlink as an example of a trusted oracle service...as others would work pretty well too.