This topic is to explore and discuss the idea of land parcels owning other assets.
From @graven’s original post:
Content on the Geo Web can be thought of as straddling two separate planes—the content layer and the property rights layer.
The content layer consists of the protocols and networks (currently Ceramic, IPFS, & Filecoin) that enable the information sharing required to publish and resolve content. This layer creates utility by organizing linked digital content for consumption on the Geo Web.
Content linking does not, however, create or necessitate explicit property rights (i.e. anyone can link to any digital content, tokenized or not). There are “Layer 0” social norms which limit the utility of linking someone else’s tokenized content, and Geo Web spatial browsers can help reinforce these norms through differential display of NFTs. But, true digital real estate development requires an enforceable property rights mechanism on the Geo Web that complements the content layer.
As of writing, Geo Web land parcels are ERC-721 non-fungible tokens. We need to implement an extension of the ERC-721 standard that allows the land parcels themselves to own other tokenized assets on-chain .
This concept has been explored by numerous projects in the Ethereum ecosystem and is commonly referred to as composable NFTs.
ERC-998 is a draft EIP, which includes different approaches to attach ERC-721 and ERC-20 tokens to ERC-721 tokens, that may serve as the basis for a Geo Web implementation.
The implementation of composable NFTs will also need to work in conjunction with the logic of the partial common ownership land market including license expiration, forced transfers, and parcel merges/splits.
Once there is an enforceable property right link between land parcels and downstream assets, the design space for digital real estate development will be wide open.
When a plot of physical land is purchased, the ownership of the house and its foundation are usually transferred with the land. The paintings and the furniture in the house aren’t, unless the sale is specifically structured to include them.
With composable land parcel NFTs, we can mimic this dynamic. Some content linked to a parcel will only be tied via the content layer. Its ownership isn’t included in a parcel transfer. Other content can be anchored with automatically transferable property rights and may be the main reason for a parcel purchase.
Entrepreneurial Geo Web land licensors may choose to anchor ownership of tokenized apps, art, architecture, games, etc. to their parcels to help grow their land value. They may also choose to keep content ownership separate and limit the value subject to the private common ownership market.
This is where investment incentives may play an important role in growing the value of the Geo Web land market.