NFTs are divided between two contracts, Parent and Child. This structure allows any parent to own a group of child tokens which follow the parent throughout its lifecycle. When the parent token is transferred, all child tokens belonging to it follow.
After an NFT's mints its genesis collection founders are able to deploy child collections directly tied to the genesis mint. A collection within a collection. This gives the ability to manage and maintain associated tokens within one parent token.
The Art Blocks project was a part of the inspiration behind the idea of crafting subsequent, generative tokens that held resemblance to its parent token. Given any child token, one is able to trace its way back to the parent token, viewing the changes throughout each generation.
NFT Gamification
Within the context of NFT games, a player accumulates items and rewards and can store them within one 'backpack' token. That player could then sell the entire backpack easily, transferring the backpack and thus all of the items to a buyer. To trade individual items, the two parent 'backpack' tokens could come together to create an agreement to exchange specific child tokens.
Social Record Keeping
For social/government documents rather than having each document be its own individual token without any encapsulation, one could establish a parent token to capture all related documents needed. Whenever these documents are required they are all in one place and can be signed/approved/transferred.
Distribution of Next Generation Art
Similar to the example NFT collection we built on this site, the genesis collection can be carried on to child collections where the parent is represented in each iteration. The parent and child contract relationship can serve to automate the process of achieving generational trait additions.
Post Mint Content
There are a lot of NFT collections that fall into obscurity after the first genesis mint due to the lack of representation as volume dies out. Some collections may want to add more items to their ecosystem to generate attention and volume while maintaining their genesis collection.