Explore 7 popular contemporary NFT issuance methods

When launching an NFT project, hammering out an underlying smart contract method is half the battle, the other half depends on which NFT issuance method is used. Of course, NFT contracts and issuance methods can be configured in various combinations, and it is entirely possible to mix different issuance methods. To summarize, there are some basic distribution methods you need to understand in the contemporary NFT ecosystem, let’s take a look at some of the popular NFT distribution methods.

1. First Come First Served (FCFS) Minting

A method of NFT issuance that opens minting to the public or NFT community members on a first-come, first-served basis.

type:

  • Permissionless – Anyone can mint coins on top of FCFS | Example: Bored Ape Yacht Club .
  • Token-gated – Anyone who holds a designated token can mint coins on the basis of FCFS | eg: Blitnauts, which can only be minted by Blitmap holders.
  • Raffle-based – requires the use of a raffle system to allocate a limited number of permission lists for FCFS minting | Example: Boki Final Sale.
  • Price-tiered – Different supply tiers in the set have different minting prices, e.g. 0.1 ETH for NFT ID 0-999, 0.2 ETH for NFT ID 1000-1999, etc. | Example: The Hashmasks .

Screenshot 2022-07-19 PM 3.46.44.png

advantage:

  • The builder is simple to implement.
  • The mint is simple to use.

shortcoming:

  • Low-priced, high-demand FCFS minting can cause congestion on the entire chain, such as Ethereum.
  • Transaction failures are prone to occur near the end of minting.
  • Easily overwhelmed by robot minters.

2. Dutch Auction (DA)

A method of NFT issuance where the aggregated NFT starts with an initial minting price, such as 10 ETH, and the price periodically drops by a specific amount, such as 0.25 ETH every 30 minutes, until a specified price floor is reached or demand balance is reached, all NFTs are all sold out.

Screenshot 2022-07-19 3.47.30 pm.png

E.g:

  • Art Blocks – From summer 2021, Art Blocks will allow artists to launch their collections through Dutch auctions.
  • Azuki — The anime-themed PFP series launched in January 2022 via a Dutch auction, but the series was minted in minutes and its initial 1 ETH mint price never dropped.
  • Forgotten Runes Warrior’s Guild — Phase 1 launch of the Forgotten Runes Wizard’s Club expansion series began with a Dutch auction; the initial minting price was set at 2.5 ETH, but dropped to a final specified rest price of 0.6 ETH during the minting process.

advantage:

Increase the transparency of the NFT bidding and price discovery process.

shortcoming:

Collectors with the deepest pockets are often preferred, who can mint at or near the initial auction price.

3. Free claim/free minting

A method of NFT issuance where aggregated NFTs can be minted for free, in addition to the gas cost associated with the transaction. More recently, projects that choose this approach have often relied on above-average secondary sales royalties to generate revenue.

example:

  • CryptoPunks – It may seem hard to believe these days, but when the most iconic collection of NFTs of all time was released in 2017, all “Punks NFTs” were free to claim.

     

  • Screenshot 2022-07-19 PM 3.48.14.png
  • Loot – Dom Hofman released Loot, an on-chain adventure gear collection, for free in August 2021. All NFTs in the series are claimed from smart contracts within a few hours.
  • goblintown — The wild goblin-themed NFT series that took the NFT space by storm earlier this year.

advantage:

  • Low cost makes these methods available to many users.
  • Incentive projects continue to deliver, as continued progress will lead to more royalty income over time.

shortcoming:

  • The rise of low-fee/zero-fee NFT markets could erode future revenue prospects for free minting projects.
  • Easily overwhelmed by robot minters.

4. Nounish Auction

A method of NFT issuance pioneered by Nouns DAO that requires the generation and auction of a new NFT every day indefinitely. However, recently we have seen a wave of projects adopting the Nounish distribution method, releasing multiple NFTs per day, etc.

Screenshot 2022-07-19 PM 3.49.12.png

type:

  • Nouns DAO – “One Noun, Everyday, Forever” is the slogan of the main Nouns project; the underlying protocol generates avatars from a set of features, auctions avatars, and auctions them once a day.
  • Lil Nouns DAO – A Lil Noun NFT is auctioned every 15 minutes every day, forever.
  • WizardsDAO – Auctions 3 Wizard NFTs per day until the total collectible supply reaches 2,000 NFTs.

Advantages :

  • This distribution method is a new on-chain method that projects can use to build NFT communities over time.
  • The minting speed and parameters can be customized in different ways.

shortcoming:

  • This approach is experimental.
  • High demand may prevent many people from going to auction in terms of price.
  • The Nouns protocol design is quite complex, so you need professional Solidity developers to build it.

5. Open Version (OE)

A style of NFT issuance in which creators or projects issue NFTs with no hard supply cap.

Screenshot 2022-07-19 3.49.48 pm.png

type:

  • Infinite – Infinite OE is a distribution where the collection has an infinite supply of possibilities and the mint never closes, such as the “The Room of Infinite Paintings” project.
  • Timed – Timed OE is an issuance method that has no set supply cap but only provides open minting for a limited time window. A recent example was Zora ’s “State of Mind” launch, which lasted three days earlier this month and raised over 123 ETH during that time.

advantage:

  • Flexible for creators and collections because everyone who wants can get one.
  • Get started easily with modern web3 creator tools.

6. Bonding Curves

Bonding Curves is a method of NFT issuance that seems to have fallen out of favor over the past year.

One of the pioneers of this approach in the NFT space is the EulerBeats project, which sells (and allows for resale) its NFTs following a price curve determined by a specific mathematical formula.

Screenshot 2022-07-19 3.50.58 pm.png

7. MultiRaffle

MultiRaffle is an NFT distribution method that hasn’t gotten a lot of attention yet, but I think it deserves more adoption.

In short, MultiRaffle is the result of Agnihotri and Hasu ‘s research on what the fairest and most efficient NFT issuance might look like. So, in MultiRaffle, the two are optimized for fairness and maximizing the cost-effectiveness of minting.

I believe some MultiRaffle experiments have been implemented, however I personally haven’t seen any since Agnihotri and Hasu published their related research post back in October 2021. This is very unfortunate because it is clear that this distribution is balanced and fair.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/explore-7-popular-contemporary-nft-issuance-methods/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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