The Intersection of Activation Rates and NFT Creators Going cc0

The Intersection of Activation Rates and NFT Creators Going cc0

In the world of growth metrics, activation rate holds a significant role. But what exactly is considered a good activation rate? A good activation rate is highly predictive of long-term value delivery to the user, often manifested in long-term retention or monetization. Users who hit the activation milestone should retain at a rate at least 2x better than those who do not complete the activation step. Additionally, the metric needs to be actionable for growth teams to directly impact. Activation serves as a leading indicator of a new user sticking around and becoming a customer.

For SaaS products, the average activation rate is 36%, with a median of 30%. However, it is important to note that simply completing the sign-up flow, which is often how companies define activation, is unlikely to show a user the value of your product. Therefore, it may not be predictive of long-term retention. Instead, it is advisable to pick a milestone that is relatively early in a new user's lifecycle and strongly correlates with long-term retention.

Now, let's shift gears and explore why NFT creators are increasingly opting for a cc0 (Creative Commons Zero) approach. While cc0 may seem similar to allowing NFT owners to commercialize the intellectual property associated with their NFTs, there is a crucial difference – cc0 holders do not have the right to exclude others from using the same IP. By issuing digital works through the cc0 license, creators consciously choose to waive all rights. This counterintuitive strategy can sometimes grow the value of intellectual property through experimentation and recombination.

The success of crypto in attracting public development is also attributed to its endorsement of open source and "remix culture." This is particularly true for certain NFT communities. So why are many NFT creators embracing the "no rights" path? One reason is that it promotes extensions of the original project, creating a more vibrant and engaged community. In the context of crypto, open sharing and community-building are core philosophies. As new derivatives are created and shared, attention flows back towards the original, strengthening its position in the collective consciousness. This, in turn, inspires more interpretations, creating a flywheel effect where each derivative adds value to the original.

This phenomenon is reminiscent of the growth of Linux. As people continued to create open source software, Linux's value proposition strengthened, leading to explosive growth and innovation across the industry. Today, Linux dominates web servers and smartphones. The cooperative opportunities enabled by decentralized systems, from open source to crypto, rely on trust and coordination among strangers. This is particularly effective in the context of NFTs because ownership over digital assets allows individuals to internalize the results of co-creation through the value accrued to their assets and contributions.

To reach a potential similar to Linux, more supporting infrastructure services must be readily available for NFT creators to take maximum advantage of remixing opportunities cc0 creates. Composability is key to growth. By building digital assets on public standards atop interoperable infrastructure, users can easily plug their assets into different platforms. Furthermore, cc0 NFT projects often earn ongoing royalties from secondary sales, making third-party expansions and derivatives potential sources of revenue by driving increased demand for the original cc0 assets.

Adopting cc0 can effectively turn competition into cooperation. By relinquishing intellectual property rights, creators eliminate the need for others to create rehashes or imitations of their work. Instead, organizations like UrbanOutfitters can use the actual work, avoiding the need to hire someone to design something similar. This fosters collaboration and encourages a more open and sharing culture within the NFT space.

In conclusion, the activation rate and NFT creators' embrace of cc0 demonstrate the importance of finding metrics that are both predictive and actionable, as well as the power of open sharing and remix culture. For growth teams, it is crucial to identify milestones that correlate with long-term retention. Meanwhile, NFT creators are leveraging cc0 to promote vibrant communities and encourage cooperative opportunities. To maximize the potential of cc0, supporting infrastructure services must be readily available, enabling seamless remixing and composability. By embracing cc0, creators can transform competition into cooperation, fostering a more open and collaborative NFT ecosystem.

Actionable Advice:

1. Choose an activation milestone that strongly correlates with long-term retention and value delivery to users.
2. Embrace the principles of open source and remix culture to foster vibrant and engaged communities within the NFT space.
3. Build supporting infrastructure services that enable easy remixing and composability of cc0 NFT assets, maximizing their potential for growth and revenue generation.