NFTs are used for a plethora of things these days. From offering art to documenting history to delivering all sorts of benefits to their holders, we seem to have only just scratched the surface of what these assets can be used for.
Now, in the US, NFTs could find a whole new world of applications as fundraising tools for elections. This comes as the United States Federal Election Commission (FEC) has issued an advisory opinion allowing for the use of NFTs by DataVault Holdings to raise funds for election purposes.
Details About the Advisory
As per the official documents, DataVault Holdings, an NFT-focused company, submitted an inquiry to the Commission on September 22, 2022. In it, it explained its plans to sell NFTs to political committees. This plan involved two types of programs. The first would see NFTs given to donors who gave more than a certain amount of money.
“The NFTs would contain artwork, campaign literature, position papers, or other digital content including video, audio, and interactive social media,” the document explains, noting that the NFTs could also provide access to special VIP events.
The other proposal would involve committees having two types of NFTs. the first would be similar to proposal 1 in which those who donate more than a certain amount could receive NFTs. The other types of NFTs would be for those who not only earned the first type and also referred others who contributed beyond a certain amount.
The commission concluded that because DatVault will receive reasonable compensation for its efforts and its activities would not constitute prohibited corporate contributions, it can proceed with these plans.
“The Commission concludes that DataVault’s proposals to provide political committees with NFTs on the same terms that it regularly offers its non-political clients would be a permissible extension of credit by DataVault in the ordinary course of business,” the document says.
What This Means
While this is obviously a win for the company, it signals an even bigger win for the industry. There have been instances of NFTs being used to raise funds in the US already but this decision gives more legal backing for these activities. As such, we can expect to see NFTs play a bigger role in the political scene both in the US and around the world.
And given the fact that election season is right around the corner for the US, this could not have come at a better time. And beyond essentially giving the legal right for NFTs to be used, this also means that blockchain as a whole can become a prominent electoral tool.
This was a sentiment shared by DataVault CEO Nathaniel Bradley who said in a statement to CoinTelegraph that he believes that blockchain is the future of elections and can offer trust and transparency for all. Here is hoping that this indeed is true and that come the next elections, blockchain and NFT will be front-and-centre at both fundraising and the conduction of elections as a whole.