With the hype of NFTs growing and NFTs crossing over into the mainstream, it’s hard for NFT newbies to know what the right moves are in this vast economy of Non-fungible tokens.
This article is the first of a series dedicated to creators called Creators’ 101. This series will guide you in this emerging industry, and tackle the many questions you may have about NFTs as a creator.
While the fast-tracked success of NFTs in 2021 created a gateway for artists to own and sell their NFTs in a legitimized way, many have found themselves learning as they go, without any foundation to fall on.
NFTs have provided an alternative to the traditional art market, one that gives artists security and freedom of choice. However, if artists are not careful about the choices that they make in terms of choosing a marketplace, putting the right artworks up for sale, or consider the many practical, legal, or monetary choices, it can make the experience for first-time artists entering the NFT world unnecessarily unpleasant. Things like gas fees, copyrights, resale royalties, etc can be frustrating to think about if you’re new to the world of NFTs. Here are the things you should know before minting your first NFT:
- Be familiar with the basics of NFTs
Once you understand the basics of NFTs, the ins and outs of how they work, you can then have a better grasp of what they can do for you as an artist, and all the ways in which you can leverage that to your own benefit.
Mintable has started a series to help new creators get familiar with the basics of NFTs: https://editorial.mintable.app/category/guides/nft-basics/
Or you can head to our Sellers’ University site for some tutorials:
Why are NFTs important?
What are NFTs
- Choosing the right marketplace for you
NFT marketplaces help artists bypass the need for an intermediary to sell their NFTs. It is a mistake to assume that all marketplaces were made equal – each marketplace operates differently, with a variety of perks available to everyone. Some marketplaces are invite-only, others are for curated artworks, some offer royalties while others don’t, or unlockable content whereas some don’t. It all depends on what the marketplace allows to be written into smart contracts. Mintable is an open platform created to make minting easy and available for everyone – we’re democratizing the NFT space, by making it as accessible as possible.
- Gas fees
This can be a pain to a lot of artists, especially those that are new to the world of NFTs. Almost all of the NFT platforms out there require the payment of “gas fees”, which is the price of which users pay to compensate for the use of computing energy to process and validate transactions on the blockchain. These tend to fluctuate depending on how it is being used on how much computing power there is that particular day. But these fees can go up to pretty high prices – not something you’d want to pay as an artist who is just starting out. There are marketplaces with options for “lazy minting”, which defers payment of gas fees until the actual sale, but might still prove prohibitive for works that are in the lower price range. The Mintable platform offers gasless minting, an option where you do not have to pay gas fees at all, but instead, just a small transaction fee.
For creators, one of the beneficial properties of NFTs to exist are royalties. Depending on the marketplace, when an artist initially mints an item, a code can be written into the smart contract that automatically pushes a portion of the resale proceeds back to its original creator. This is a powerful tool that allows for the original creator to earn recurring revenue from their work through resales.
Copyrights are crucial to the artist when it comes to securing creative rights to their intellectual property. It is what guarantees security for the artwork and the artist, by verifying the legitimacy of the artwork and making sure that only the author has exclusive power to own and transfer rights of distributing and producing copies of the work, or to make work derived from the original. For NFTs on the Mintable marketplace, artists have the choice of transferring copyrights to the next owner. Another feature that we’ve put in place is authenticity checks, to verify that an NFT artwork hasn’t been directly stolen or copied from another artist or website.