NFT marketplace
NFT Marketplace is actually not a single contract, but a contract ecosystem, consisting of four contracts that interact with one another. Only one of the contracts (StreamNFT) actually knows about the other three, while the others represent primitives in the ecosystem and do not interact with each other at all.
First, we'll go over what each contract does at a glance, and then we'll cover the full life cycle of a token becoming an NFT and getting auctioned to see the ecosystem in action. Following that will be modules for each contract.
How does it work?
Sell NFTs 6+ ways, complete with royalties and creator splits.
NFT Marketplace is a protocol built on top of Solana that allows:
Creating/Minting non-fungible tokens;
Starting a variety of auctions for primary/secondary sales;
and Visualize NFTs in a standard way across wallets and applications.
NFT Marketplace is comprised of two core components: an on-chain program, and a self-hosted front-end web2 application.
Protocol
Non-fungible tokens
NFT "non-fungible-token" standard is a part of the Solana Program Library (SPL) and can be characterized as a unique token with a fixed supply of 1 and 0 decimals. We extended the basic definition of an NFT on Solana to include additional metadata such as URI as defined in ERC-721 on Ethereum.
Below are the types of NFTs that can be created using the NFT Marketplace
Royalties and marketplace:
In the case of works of art and musical pieces, artists, therefore, have the advantage of receiving royalties on every sale subsequent to the first one. Sales feed the so-called “secondary market” thanks to Solana blockchain technology, which allows for secure traceability and the use of smart contracts that allow authors to be credited, automatically and immediately, with a share of the sale price.
The smart contracts written into the NFT code allow for the distribution of funds for royalty payments to the creator each time the artwork is resold. However, there is a complication regarding NFTs and royalty payments: automatic resale royalty payments may not occur if the NFT is resold, maybe even at a much higher price, through a different marketplace than the initial one. Smart contracts give the platform the ability to automatically transfer the token from the seller’s wallet to the new owners.
The ERC-721 standard that led to the boom in the NFT market is now being revised in order to allow for a more effective method of royalty payment that does not depend on the platform that creates the NFT because the current system is based almost exclusively on the decisive role of the marketplace in aggregating the market and dictating the rules, first of all in their benefit. Here are some examples of the marketplace and our method of managing royalties.
ERC-721 Royalty Standard:
These NFTs use a modification of the ERC-721, called the ERC-1155. This means that with every future sale, the original Liquidity Pool holder gets a royalty of 8%, with another 2% going to FYFY.IO In two weeks, the smart contracts governing the unique Liquidity Pool´s paid out in royalties, automatically.
The NFTs royalty system is crucial for the purchase and sale of NFTs by artists and creators who are interested in tokenizing their items. The fact that there are still limitations in the management of copyrights at the discretion of marketplaces can induce potential investors to desist from the idea of tokenizing their works, therefore, even the marketplaces themselves are trying to develop policies that provide greater protection and security.
The Smart Contract
NFT Token Metadata:
This is the smart contract of the entire ecosystem. All that you need to interact with it is your own mint for which you have the mint authority. It is primarily a "mint decorator." It allows you to decorate your mint with a Metadata PDA that gives it a name, symbol, URI, list of creators with royalty splits, and whether or not it's been sold. You can do this with any mint with any supply.
Phantom Wallet uses this Metadata account and its URI field, which often links to a Manifest.json file of a certain format, to display NFTs in their Collections category on their UI.
Furthermore, if your mint has one token in its supply, you can give it an additional decoration PDA, of type MasterEdition. This PDA denotes the mint as a special type of object that can mint other mints - which we call Editions (as opposed to MasterEditions because they can't print other mints themselves). This makes this mint like the "master records" that record studios used to use to make new copies of records back in the day. The MasterEdition PDA will take away minting and freezing authority from you in the process and will contain information about total supply, maximum possible supply, etc.
The existence of Metadata and its sister PDA MasterEdition makes a very powerful combination for a mint that enables the entire rest of the Marketplace contract stack. Now you can create:
Normal mints that just have names (Metadata but no MasterEdition)
One-of-a-kind NFTs (Metadata + MasterEdition with
max_supplyof 0)NFTs that can print limited edition child NFTs (Metadata + MasterEdition with
max_supplyof say 10)NFTs that can print unlimited open edition NFTs (Metadata + MasterEdition with unlimited
max_supply)
You can also easily transfer ownership of these PDA records with the updateAuthority key on Metadata between parties, so you can sell printing rights to another party, or just give them the Stream NFT token itself while retaining the printing rights.
The Objectives
What are the aspects to consider in designing an NFT business tokenomics? Below there is a simplified checklist that summarizes key steps to prepare your business to access and integrate NFTs.
Identify the NFT's use cases
Depending on the use case, there are different technologies, platforms, and mechanisms to design an NFT.
The main uses cases are
Fan engagement:
Ticketing: NFTs may be used as an entry ticket for events, community initiatives, or DeFi pools
Loyalty: NFTs can be used as loyalty rewards to incentivize a certain behavior.
Fan governance: NFTs can give voting rights to the community.
Enhanced utility in the metaverse: virtual worlds can leverage NFTs to enhance utility and rewards for users.
Additional revenue streams:
Royalties: smart contracts allow programming the NFT to pay future royalties to the NFT creators every time the token is sold.
Secondary market: having real ownership of in-game items revolutionize the gaming industry by allowing an independent secondary market and/or NFTs-based reward mechanisms.
Customer relationship management:
NFTs' traceability opens doors to better customer segmentation and more tailored customer engagement. To understand customer habits and loyalty levels can now be used new variables, such as types of NFTs owned by the wallet, quantity, and duration.
Defi collateralization:
NFTs can be used as collateralized loans. Borrowers can offer up NFTs as collateral and lenders can choose which NFT they are willing to accept before initializing a loan. The NFT is used as collateral and if the borrower defaults on their loan, the NFT is transferred to the lender.
2. Select the Blockchain and NFT Standard
Ethereum is the blockchain with the most NFT activity, but other blockchains (Solana) is gaining traction with NFTs. There is a trade-off between the different technologies available. Some variables to be considered in evaluating different blockchains are:
Scalability and cost: NFT-based transactions need cost-effective solutions because they could include many micro-transactions, involving in-game digital assets, digital collectibles, card games, and so on.
Smart contracts security: they must be subject to rigorous testing.
NFT standard: non-fungible only (e.g. ERC-720) v.s. dual purpose (e.g. ERC-1155)
3. Mint the FYFY NFTs
To mint an NFT, it is important to select a minting platform that gives flexibility and control over the features of the NFT. Once the NFT is minted on the Solana blockchain, it is most likely impossible to transfer or sell them on other blockchains.
4. Store the NFTs
Storing the NFT means store the NFT file (e.g., the digital artwork). The main alternatives are:
Blockchain storage: ideally it is the best solution, but blockchains were not made to store large files due to the high required cost.
Centralized storage: the URL of the digital file associated with the NFT is stored in a centralized place (e.g. server, cloud). If the NFT creator stops hosting that file, the NFT would point to nothing.
Decentralized storage: storage files are spread across a distributed network (e.g. IPFS); there is no dependence on a single entity.
5. Distribute the NFT marketplace
The FYFY NFT marketplace is an online service for the trading of NFTs. It is comparable to an e-commerce website where you can use digital wallets to buy items. Marketplaces use the Solana blockchain, have different integrations with exchanges, and be specialized in different kinds of assets.
Below are some variables to be considered in choosing a Stream NFT marketplace:
Category: e.g. collectibles, music, art, gaming.
Payments method: e.g. Credit card, Debit card, Cryptocurrency, Bank transfer.
Services included: e.g. buy, sell, mint, stake.
Blockchain: Solana
Source Code:
Risks
There are some additional aspects that could be relevant to take into consideration before starting an NFT business:
Risk management: volatility risks, fraud risks, security risks.
Licensing and T&Cs: make sure there’s regulatory and legal clarity in your NFT sale/purchase. You may need to abide by whatever is the T&Cs of the marketplace that you are using.
Regulatory framework: different countries have different copyright laws.
Stream NFT Token
NFT “non-fungible token,” refers to digital assets with unique characteristics. Unlike bitcoin, Ethereum, or other tokens that are fungible and can be traded with one another, each NFT assets are distinct from the other. The possibilities of NFTs may seem endless, just like every new investment/asset class.
Stream NFT stands for “non-fungible token,” which is a unique digital asset that has proof of ownership and verification of authenticity held in the Solana blockchain.
Stream NFT can be digital art, real estate, collectibles, event tickets, website domains, or tweets.
NFTs provide a record of authenticity and ownership held and verifiable on the Solana blockchain.
They’ve fashioned a new market to create wealth, with high growth potential.
NFTs generate efficiency with (smart) contracts by streamlining processes and eliminating intermediaries.
They empower an NFT marketplace for artists, allowing them to sell directly to collectors and receive royalties whenever the art is resold.
NFTs can potentially add diversification to your financial portfolio, as the economy and companies prepare for what’s next in a post-pandemic world. (That’s of course, only if you have the risk tolerance and liquid cash to invest at all.)
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