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1. The Protocol
1.1. The “Laissez-Faire” Protocol
Being a web3-native product, Reitio is built as a front-end to facilitate interactions — any asset on the platform is ultimately owned by its end-users, and transactions are done completely in a peer-to-peer manner (unless the Reitio account is authenticated via a fiat on-ramp intermediary).
For 3D artists on Reitio, all uploaded asset packs and templates will be represented in the form of NFTs. The pay-per-use royalty rate (and beneficiaries) for each NFT will be strictly determined by the issuing Reitio account — only the party holding the private key to its bounded wallet can alter the royalty terms, as well as the ability to list and delist the NFT from Reitio (since this is also accomplished via on-chain smart contracts).
For users, Reitio-generated 3D assets will be automatically exported locally or minted as NFTs upon successful execution of smart contracts to pay platform fees and disburse royalty payments to template creators. As such, we are not able to freeze or block royalty payments nor deny the local export or NFT mint of an already paid-for asset, since the whole process would be an ‘atomic’ operation.
As NFTs fundamentally live on the blockchain no matter on which front-end they are minted, there is no restriction for the owner to transfer the NFT to another party, or list it on any NFT marketplace outside of the Reitio front-end client.
For artists looking for instant liquidity over collecting perpetual royalty streams, selling their NFTs to speculators on an NFT marketplace could prove to be a crucial consideration for them to onboard into Reitio. Like artists, users could also sell off their Reitio-generated 3D asset on NFT marketplaces — depending on a user’s ingenuity in fusing templates, the resulting asset might even fetch a higher price over the combined capital and time cost to create it on Reitio in the first place.
1.2 Three-Sided Network Effects
Reitio's value flow resembles a self-reinforcing flywheel that will continuously strengthen as the protocol matures. Pioneering a three-sided network model, Reitio aligns the incentives of all three core participants of the protocol such that by acting in their respective self-interest, it brings about more significant benefits toward the health of Reitio's network economy.
Onboarding 3D artists would mean a population of asset packs and templates on Reitio, which in turn would draw in more users since the platform now offers a greater degree of 3D asset customizability. As a byproduct of this surge in user base, more artists would now be compelled to showcase their skills on Reitio for exposure and financial gain, which would lead the platform to house an expansive 3D mesh library and attract more users as a result.
The growing activity on Reitio inadvertently attracts speculators to bid on the asset packs and templates of artists, those that might fetch a high use rate on the platform. The initial market inefficiency would result in more profit opportunities for speculators, which in turn would attract other speculators looking for arbitrage windows throughout the overall market. More speculators would cause the market to become more liquid, which makes it easier for artists preferring instant liquidity to cash out, but not shortchanged on the fair value of their assets.
1.3 From Virtual Worlds to the Metaverse
The absence of a common standard to denote virtual items has spurred “metaverse” projects to a “Walled Garden” approach — a siloed virtual world in which they are in the driving seat. In due course, the propagation of multiple virtual worlds of this elk means it does not come as a surprise that the prevailing general perception of “metaverse” is beginning to skew towards “siloed social virtual worlds” (like Roblox or The Sandbox) instead of it being a “network of interoperable virtual worlds”.
The realization of the Internet unfolds in three stages: 1) adoption of Intranets; 2) transition from private Intranets to the public Internet; 3) commercialization of Internet applications.
Likewise, the realization of the Metaverse will also unfold in three successive stages: 1) adoption of virtual worlds; 2) transition from siloed virtual worlds to the open Metaverse; 3) commercialization of Metaverse virtual assets.
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