For luxury and fashion brands, what are the benefits of engaging with DAOs?
If you give users a stake in your platform, those users have a vested interest in the platform’s success. If you had a digital fashion marketplace that required a token for access, it would incentivise users to promote products being sold on that marketplace. The more desirable those products become, the more people want access to them and the more valuable the token becomes.
There is also this idea of splitting revenue and royalties to compensate makers. Say you have a suit where a different designer did the colour, the cut and the pattern, for instance. Every time it was sold and resold, each designer could get a proportion of the profit, automatically, for their part in the creation.
Why was the D&G Doge Crown something that Red DAO wanted to collect?
There was a lot of hype about the Doge Crown representing the king or queen of digital fashion. In future, we might use the asset as a promotional tool for the DAO and for digital fashion in general. We could even rent it out. The idea is that you can keep monetising an asset like this in the future.
If you could give a piece of advice to luxury or fashion brands who are interested in launching an NFT, what would it be?
In my eyes, luxury brands aren’t taking digital fashion seriously. It’s currently being used as a marketing tool to redirect attention to physical clothes, but it should be its own diversified revenue stream. There are going to be 3bn gamers globally by 2023 (source: Newzoo). That's a colossal market opportunity that brands are not grasping – it should have its own dedicated team.