Venture capital is private equity for startups which have potential for high growth. Utility capital (UC) is private equity that prioritizes return of utility. UC will be the next stage of NFT development which allows projects to develop utility for their community and onboard new users. I’ll explain the effects and goals of this strategy.

Web3 has an inordinate amount of builders. Permissionless building is effective. Incentivized building is more effective. A lot of these builders don’t need or necessarily want to be leading billion dollar businesses (still might be nice) but would be enticed with 4 hour work week style muses. This situation allows projects to attract builders to create new utility with incentivized building. This attraction takes place through allocation of UC.

Projects raise enormous sums of money but are limited by the core team's bandwidth. Web3 preaches decentralization but decentralized building has yet to take root en masse. By allocating mint and royalty funds to builders, an NFT project team is able to extend its reach. UC, once a trend, allows for communities to win together. Let’s take an example of a builder creating a coffee brand.

Builder A wants to build a coffee brand. To start, they submit an application and are rewarded funding from the Poorletariat Project. In the beginning, they are allocated enough to cover starting expenses and they have hundreds of people ordering their coffee from the Poorletariats. In agreement with the funding, the maximum the Poorletariat NFT holder pays for a bag of coffee is at cost. This is a significant discount for a premium coffee brand.

Expanding on future benefits, projects could setup contracts to scale benefits with the success of each project. With the coffee company, the coffee for Poorletariat members could decrease in cost at set rates per monthly customer. In effect, NFT projects seed capital and an atomic network for the new company. This is nearly an ideal founding. In return, the benefits for the NFT project scale with success.

Let’s look at some benefits of this fictional coffee company for the Poorletariat. Assuming this company becomes moderately successful. With the support of the Poorletariat, they are able to expand into traditional markets. There is a high potential this coffee company becomes popular with NFT naive individuals.

Customers who are NFT naive are beneficial for the project which funded the coffee company. Working together, there are plenty of methods to onboard these users to NFTs. We now have a reach into a wider audience who know that possessing this NFT will give them a steep discount on their favorite coffee. This is a long term way to secure new holders.

Many NFT naive individuals will not want to pay for high value NFTs. However, with the Poorletariat expansion model, we will be able to supply utility only NFTs which will be priced for mainstream adoption. In addition, the hierarchical structure allows for us to reinforce the value of our initial collections. For instance, the Flocks royalties pay into the Flock but also the Shepherd competitions. The utility NFT royalties will be used for the utility NFT and the Flocks which indirectly reinforces the Shepherd. Every expansion reinforces the past.

With this potential, it is likely that other NFT projects follow the UC trend. Since the Poorletariat are some of the originators then the companies we initially fund will have inordinate weight in the space. Once funded by the Poorletariat they could apply for funding at other NFT projects - with a higher chance of winning since they were previously funded and have traction. This will result in the UC model expanding, our companies thriving and we will start revolutionizing the onboarding of NFT naive individuals. Since the UC model connects a wide variety of individual communities we can grow together. UC allows NFT projects to win together.

Already Nouns have shown the success that this model can bring. Moonbirds are setting up a similar system with their DAO controlled funding mechanism. Moonbirds have taken the concept a step further by incorporating trademark rights into the DAO governed responsibilities. UC is already becoming a trend.

UC does not need to be a lifestyle business. It can be used to seed venture ideas. However, the idea is quick turnaround utility for the community. It is not an investment into shares of the company (yet), but is an agreement for utility for the Poorletariat and wider NFT community. UC is going to be the future of extending the reach of NFT project teams.

Venture capital is private equity for startups which have potential for high growth. Utility capital (UC) is private equity that prioritizes return of utility. UC will be the next stage of NFT development which allows projects to develop utility for their community and onboard new users. I’ll explain the effects and goals of this strategy.

Web3 has an inordinate amount of builders. Permissionless building is effective. Incentivized building is more effective. A lot of these builders don’t need or necessarily want to be leading billion dollar businesses (still might be nice) but would be enticed with 4 hour work week style muses. This situation allows projects to attract builders to create new utility with incentivized building. This attraction takes place through allocation of UC.

Projects raise enormous sums of money but are limited by the core team's bandwidth. Web3 preaches decentralization but decentralized building has yet to take root en masse. By allocating mint and royalty funds to builders, an NFT project team is able to extend its reach. UC, once a trend, allows for communities to win together. Let’s take an example of a builder creating a coffee brand.

Builder A wants to build a coffee brand. To start, they submit an application and are rewarded funding from the Poorletariat Project. In the beginning, they are allocated enough to cover starting expenses and they have hundreds of people ordering their coffee from the Poorletariats. In agreement with the funding, the maximum the Poorletariat NFT holder pays for a bag of coffee is at cost. This is a significant discount for a premium coffee brand.

Expanding on future benefits, projects could setup contracts to scale benefits with the success of each project. With the coffee company, the coffee for Poorletariat members could decrease in cost at set rates per monthly customer. In effect, NFT projects seed capital and an atomic network for the new company. This is nearly an ideal founding. In return, the benefits for the NFT project scale with success.

Let’s look at some benefits of this fictional coffee company for the Poorletariat. Assuming this company becomes moderately successful. With the support of the Poorletariat, they are able to expand into traditional markets. There is a high potential this coffee company becomes popular with NFT naive individuals.

Customers who are NFT naive are beneficial for the project which funded the coffee company. Working together, there are plenty of methods to onboard these users to NFTs. We now have a reach into a wider audience who know that possessing this NFT will give them a steep discount on their favorite coffee. This is a long term way to secure new holders.

Many NFT naive individuals will not want to pay for high value NFTs. However, with the Poorletariat expansion model, we will be able to supply utility only NFTs which will be priced for mainstream adoption. In addition, the hierarchical structure allows for us to reinforce the value of our initial collections. For instance, the Flocks royalties pay into the Flock but also the Shepherd competitions. The utility NFT royalties will be used for the utility NFT and the Flocks which indirectly reinforces the Shepherd. Every expansion reinforces the past.

With this potential, it is likely that other NFT projects follow the UC trend. Since the Poorletariat are some of the originators then the companies we initially fund will have inordinate weight in the space. Once funded by the Poorletariat they could apply for funding at other NFT projects - with a higher chance of winning since they were previously funded and have traction. This will result in the UC model expanding, our companies thriving and we will start revolutionizing the onboarding of NFT naive individuals. Since the UC model connects a wide variety of individual communities we can grow together. UC allows NFT projects to win together.

Already Nouns have shown the success that this model can bring. Moonbirds are setting up a similar system with their DAO controlled funding mechanism. Moonbirds have taken the concept a step further by incorporating trademark rights into the DAO governed responsibilities. UC is already becoming a trend.

UC does not need to be a lifestyle business. It can be used to seed venture ideas. However, the idea is quick turnaround utility for the community. It is not an investment into shares of the company (yet), but is an agreement for utility for the Poorletariat and wider NFT community. UC is going to be the future of extending the reach of NFT project teams.