NFT Property Royalties

Gary Vaynerchuk proposes using NFTs and blockchain smart contracts to create perpetual royalty streams from unique real estate properties. The idea leverages blockchain technology to automatically capture a percentage of future property sales in perpetuity.

Key Points:

• Core Concept:

  • Turn unique properties into NFTs with smart contracts
  • Build in automatic royalty payments for all future sales
  • Target properties with unique characteristics (like Michael Jordan's house)

• Implementation Example:

  • Buy a unique $25M beach house
  • NFT the property with a 1-2% perpetual royalty contract
  • Each future sale automatically pays previous owners
  • Royalties pass down to future generations

• Value Creation:

  • Property owners can monetize beyond initial sale
  • Creates multi-generational wealth opportunity
  • First buyers typically don't mind the royalty due to long hold times (13-15 years)

• Additional Revenue Opportunities:

  • For special properties (like MJ's house):
    • Rent out unique features (basketball court)
    • Create experiences and events
    • Leverage property for content and promotion

• Market Impact:

  • Will change real estate industry dynamics
  • Creates new form of property rights and value capture
  • Enables property owners to benefit from long-term appreciation