EP:46 Depreciating Licensing Model in NFT Ownership with Anthony Lee Zhang from UChicago Booth

NFT is not just about digital art and tokenising assets. There
are so many more things we can do with NFTs, like embedding
property rights, more efficient mechanism design of property
rights allocation and balancing between the various types of
tradeoffs.


Today, we have with us Anthony Lee Zhang, assistant professor of
Finance at UChicago Booth. He co-authored a paper with Glen Weyl
on depreciating licenses (DL). Licenses are basically property
rights, and NFT is about tokenising these property rights. (A
chapter in the book)


In Depreciating Licenses, Anthony and Glen came up with a simple
game theory model of asset ownership. Basically you own a fixed
percentage of the property and the remaining percentage is
auctioned off or being sold each time period. In this way, it
mixes both a full ownership model and full rental model.


This is absolutely fascinating because in property rights
allocation, we typically experience the trade off between
investment incentive (owning the asset 100%) VS asset allocation
(allocating to the best person who values the item the highest
right now). With depreciating licenses model, this mixes both and
balances the trade off.


Join our NFT discussion channel on discord to ask questions and
to learn more: https://discord.gg/6zKyFEyJ


Also check out the Art is Always On Sale model with Simon de la
Rouviere:
[https://youtu.be/5WitN5bwfr8](https://youtu.be/5WitN5bwfr8)


DL paper by Anthony Lee Zhang and E Glen Weyl:
[anthonyleezhang.github.io/pdfs/dl.pdf](http://anthonyleezhang.github.io/pdfs/dl.pdf)


Reach out to Anthony on Twitter:
[https://twitter.com/AnthonyLeeZhang](https://twitter.com/AnthonyLeeZhang)