Ripple Labs Inc. is launching a $250 million fund to research and develop non-fungible tokens (NFTs) and other tokenization projects on the XRP ledger. The fund will support artists as well as companies with their tokens and fan communities.
The increased global interest in NFTs has created new revenue streams and business models. However, when it comes to developing modern NFTs, many developers face barriers to entry. On the one hand, it's the fear that their NFTs won't sell. On the other hand, it is also a lack of understanding when it comes to NFT concepts.
Developers, in turn, often face high transaction fees and confusing user interfaces on marketplaces or platforms. Ripple aims to address these issues on the XRP ledger, which is fundamentally not designed as a smart contract platform.
Researching NFT use cases
While digital art and collectibles have quickly gained public interest and popularity, the benefits of NFTs extend far beyond these use cases. By providing creative and technical support to a variety of marketplaces, creators, artists, and brands, the Ripple Creator Fund seek to enable additional use cases for tokenization - such as interactive experiences and fractional ownership.
"While NFTs have opened the door to a tokenized future, actually navigating these concepts is a different ballgame for many. By starting with marketplaces and artists, our fund seeks to take the guesswork out of NFT projects to unlock unexplored use cases of tokenization on the XRP ledger." - Monica Long, General Manager of RippleX
The Creator Fund is designed to provide creative NFT creators with the financial and technical support to explore and develop concepts and tokenization projects on the XRP ledger. It is aimed not only at artists, developers and brands, but also at agencies that want to offer their clients a low-risk opportunity to experiment with NFTs.
Ripple is partnering with various NFT marketplaces and creative agencies that have recognized the potential of these unique tokenized assets to gain initial access to the fund. Together, the Ripple Creator Fund and its partners aim to accelerate the development of NFTs while eliminating the problems associated with developing compelling projects.
"Everything we do at Mintable is about accessibility. It's time we looked at this holistically - creators of all disciplines and backgrounds need to have access to equal opportunities in this space. There are so many untapped opportunities within the ever-evolving NFT ecosystem. We're excited to deepen our partnership with Ripple and support the Creator Fund to foster greater growth in the industry." - Zach Burks, CEO of Mintable
Creating NFTs on the XRP ledger is intended to provide creative creators' works with new avenues for monetization. Ripple Labs believes that the XRP ledger is suitable for driving NFT usage at scale and without the need for Layer 2 protocols due to its speed, low cost and built-in royalties.