First Look: Dems’ NFT Dreams
A group of Democratic agents plan to turn political memorabilia and photos into NFT, seeking to raise funds by creating – and then selling – digital assets beyond the arenas of sports and entertainment.
Why is this important: While conservative and liberal groups are already spending millions to pressure lawmakers over President Biden’s social safety net expansion, Democrats are looking to exploit non-fungible tokens to outrun their opponents.
Driving the news: On Monday, a new group, Front Row, will launch a political NFT market – and only allow Democratic campaigns and causes to use it.
- The first NFTs for sale will be Texas Democratic Party digital collectibles.
- For example, for $ 250, a political activist can purchase a “Wanted” digital poster, with animation, of various Texas lawmakers who fled the state this year in an unsuccessful effort to block its new restrictive voting law.
Go back: In August, Scott Jensen, a Republican candidate for governor of Minnesota, released two NFTs to raise money for his 2022 campaign.
- He claimed to be the first politician to propose an NFT.
- Sports and entertainment stars were the first to embrace the trend, with Tom Brady and Tiger Woods the last to cash in.
How it works: An organization or political campaign will create a TVN, set the number of tokens, and then set the price.
- Buyers will purchase the NFT through the Front Row website, much like a traditional donor would donate to a campaign through the Act Blue website.
- The donor – or more precisely the buyer – would then be the owner of the TVN.
- Profits will go to the campaign, with Front Row taking transaction fees.
- Sales will have to comply with campaign finance laws. Federal candidates will be limited to selling NFTs for $ 5,800 – the maximum contribution per cycle – while PACs and party committees can increase their prices accordingly.
The big picture: Artist Kevin McCoy’s very first NFT, “Quantum,” sold at auction for $ 1.47 million in January.
- The NFT market has since exploded, with trading volume reaching $ 10.67 billion, according to CNBC.
Go further: Although NFTs primarily use blockchain technology, they don’t need to be purchased with cryptocurrency.
- The Congressional Republican National Committee tried to capitalize on the crypto craze by announcing that it would start accepting cryptocurrency contributions, Axios reported in June.