In the future, we will see more unique, complex, and interconnected cryptographic media leveraging multiple DeFi protocols to achieve value propositions and use cases that the traditional financial industry cannot offer. Possible design models include but are not limited to:

Bundling²: Index Coop* created an equal-weight index fund comprising AXIE, MASK, and PUNK from NFTX (since they are already ERC-20 tokens), allowing retail investors to easily purchase a variety of NFTs.

Slicing + Bundling: An Axie, a Catalog record, a Cryptopunk, and a Sandbox* land are each "sliced" into 100 ERC-20 tokens. Then, 25 ERC-20 tokens from each of these assets are deposited into Charged Particles to mint an NFT representing a basket of fractionalized assets.

Composability: We can combine multiple NFTs or attach additional utility and value to existing NFTs. AlchemyNFT’s AutographNFT falls into the latter category, offering the ability to sign existing NFTs with digital signatures. Punkbodies takes the former approach, allowing users to combine a Wrapped CryptoPunk (an ERC-721 token) with a PunkBody (another ERC-721 token) to create a downloadable or mintable Punkster. Minting the Punkster NFT locks the original ERC-721 tokens, and users can burn this NFT to release the original ERC-721 tokens. Composable NFTs inherit the provenance and utility of the original tokens while providing additional functionality or utility.

In the coming years, we will see a wealth of experimentation based on these concepts. We eagerly look forward to developers, creators, and communities working together to bring them to life.