Designing a fair and inclusive digital asset-based name-image-likeness marketplace

Regulatory changes have enabled American student-athletes to profit from their name, image, and likeness (NIL). However, only a fraction of the student-athlete population is actually profiting from their NIL, which raises questions concerning fairness and inclusiveness. Motivated by that scenario, we look at technological solutions capable of sharing a limited amount of financial resources fairly and inclusively. Following a design science methodology, we define design requirements for such technological solutions after interviewing student-athletes, which leads us to establish the inclusive-meritocratic fairness criterion. Subsequently, we determine design principles that artifacts aiming at helping student-athletes should satisfy. We find that a solution that satisfies the proposed design principles is to associate student-athletes with digital collectibles represented as non-fungible tokens (NFTs). The core idea behind our artifact is that student-athletes receive royalties in primary markets after NFTs are randomly minted, plus deterministic royalties in secondary markets whenever a transaction involving their collectibles happens. Interviews with student-athletes validate our design. We conclude the paper by discussing how our ideas give rise to a new NIL design theory. • A framework for fair and inclusive name-image-likeness compensation is proposed. • Relevant design requirements, principles, and features are defined. • An NFT-based solution satisfies all design requirements and principles. • The NFT-based solution is validated with US athletes. • A new design theory for fair NIL systems in creator economies is proposed.