Learn how to successfully start an NFT collection by preventing exploitation during mining, ensuring fair distribution and reducing the cost of gas fees when mining NFTs.
Table of Contents
- What makes an NFT launch successful?
- Ineffable justice
- User experience
- Price effectiveness
- participation
- disbelief
- How to Launch NFT Collection Successfully
- Bidding and Clearing Steps
- Distribution phase
- Metadata disclosure step
- Result
What makes an NFT launch successful?
From what we’ve learned about the non-fungible token (NFT) market so far, it’s one thing to have a quality NFT project, and quite another to launch it successfully.
With nine categories and over 10,000 NFT collections on OpenSea, the leading marketplace, NFT collections abound. But what makes NFT combinations good? In this guide, we will discuss all the factors you need to consider when starting an NFT project.
When it comes to NFTs, success is relatively high. While some judge an NFT project startup on its initial buzz and whether it manages to sell out within minutes, a more complex metric of success focuses on the effectiveness of the processes involved. For the latter, the main areas of concern are:
- Ineffable justice
- User experience
- Price effectiveness
- Disbelief
Let’s take a look at what each of these means.
Ineffable justice
If you ask any NFT collector what they look forward to most about a newly launched and promising project, chances are they’ll pick up some of the rarest NFTs in the collection.
Note that when an NFT collection is initiated, interested collectors can interact with the project’s smart contract to mint NFTs with different attributes. The rarer the attributes associated with an NFT, the higher its value in the secondary market.
And so, the majority participate in these launches with the hope that NFTs will get the highest rarity scores. The popularity of NFT launch stems from the assumption that the entire process depends on a random distribution of objects. In summary, the general belief is that luck, rather than a predetermined requirement, plays a significant role when it comes to who ends up with rare mints.
However, if history has taught us anything, it is that such a system is constantly vulnerable to exploitation. So, it’s no surprise that some participants try to improve their chances of ending up with the most valuable NFTs during the minting phase. In most cases, these users use mechanisms designed to exploit the launch.
For the most part, this can be done by finding ways to extract metadata across a collection of NFTs. Using metadata, it becomes easier to understand the frequency of traits in each rarefaction score. With this information, all that remains is to manipulate the NFT collection’s smart contract so that only NFTs with high oddity scores are created.
If this happens, the random distribution that was initially promised will be lost, leaving average participants with less valuable NFTs.
For example, let’s consider Larva Labs’ release of Meebits. An attacker pulled metadata from a distributed storage protocol called IPFS (Interplanetary File System) and created a smart contract that checks the Meebits ID before finalizing the minting process. In the event that Meebit’s ID does not match the default rarity score, it automatically returns the minting process. Thus, only minting transactions for rare Meebits NFTs were finalized.
If you’re starting an NFT project – what can you do to avoid it?
The answer is relatively simple: the launch model adopted should not favor those with high technical experience or those more familiar with the intricacies of blockchains and smart contracts, thereby putting everyday users at a disadvantage.
User experience
Another factor that is considered when evaluating the success of an NFT collection launch is the user experience. Knowing full well that blockchain and crypto are generally considered complex, it is up to developers to choose technology implementations that do not overcomplicate things. More specifically, choosing simple models will level the playing field for both less technically inclined participants and blockchain experts.
Price effectiveness
It is worth noting that the cost of minting NFTs can be higher than the cost of the mint, especially in cases where the NFT project uses a first-come, first-served (FCFS) model.
Naturally, the FCFS model, as seen during the launch of the digital plot of the Otherside lands, triggers the rise of NFT-based Metaverse gas fees created by Yuga Labs. Because it was a highly anticipated launch, a large volume of transactions were submitted to the Ethereum blockchain, making it difficult to properly scale the blockchain. Thus, users had to pay higher fees in order for miners to prioritize their transactions. As a result, it was learned that participants paid more than $176 million worth of Ethereum in transaction fees alone.
Participation
One of the primary goals of successful NFT projects is to build strong communities around their collections. No matter what you think of Board Apes (BAYC), no one can deny the power of its community – from the BAYC-themed restaurants to the Ape Holders that represent the collective. Donate merchandise.
To achieve this, it is advisable to ensure that NFTs are in the hands of a diverse group of users rather than focusing on a particular demographic or location.
Disbelief
Finally, the process involved must be unreliable. In other words, users should not need to trust that the operator or developer will use fair procedures and processes – hence the use of blockchain.
How to Launch NFT Collection Successfully
After exploring the factors that are considered when rating the success of an NFT launch, it’s time to highlight some things you can do to improve your upcoming NFT minting event. But before we get into that, let’s first discuss the four main stages of an NFT launch.
- Bidding: The stage when the launch goes live and interested buyers are expected to submit their bids to the smart contract or operator.
- Clearing: At this stage, the smart contract analyzes the bids against the remaining supply of NFT to determine a fair clearing price as well as the winning bids.
- Distribution: Once the clearing phase is over, it’s time for winners to claim or receive their latest NFTs.
- Metadata Disclosure: At the final stage, the operator or smart contract discloses the properties of the NFTs.
So, the question is: How do you optimize all of these processes?
Bidding and Clearing Steps
First and foremost, it’s crucial to decide whether a continuous or sequential approach to bidding and clearing is appropriate for your launch.
In a continuous process, bidding and clearing occur simultaneously. Here, each bid is instantly matched with the remaining supply of the NFT collection. A great example of a continuous model is the first-come, first-served method mentioned earlier in this guide. As stated earlier, this model puts a lot of pressure on the underlying blockchain infrastructure. This may also potentially result in increased transaction fees.
A preferred model uses a more sequential approach to implementing the bidding and clearing phases.
Unlike a continuous system, the sequential approach ensures that the bidding and clearing phases do not overlap. In other words, the operator or smart contract first aggregates all bids for a certain period of time, before matching the remaining supply.
One of the advantages of this approach is that it allows the operator to determine a fair clearing price. Also, it leaves no room for unnecessary increases in transaction fees, as users are not trying to beat the rush. Finally, it allows people from different time zones to participate in the minting event since the collection of bids usually lasts for days.
Other judgments revolve around the untrustworthiness of the bidding process. The goal is to ensure that most of the processes involved are performed on the blockchain and not in an off-chain based setup that requires users to trust the integrity of the developer.
Distribution phase
At this stage, the main talking point is the need to implement mechanisms that mint the tokens, send them to the rightful owners, and return them to the losing bidders.
The goal is to make these processes as efficient as possible. To prevent gas auctions or cost inefficiencies, it is better to distribute NFTs to the winning bidders in batches, rather than setting up a quick distribution mechanism that could force gas fees to rise. Is.
The distribution phase is important because the potential for profit in the secondary market may force users to claim their NFTs at the same time, thereby exposing the entire network to increased gas fees.
One way to prevent this is to prevent users from claiming NFTs. Instead, the operator will be responsible for sending the NFTs to the winning bidders over time. With this, users don’t need to do much to get their tokens. The only requirement is that they include the delivery fee as part of the initial payment made for the NFT.
Metadata disclosure step
The last step involves revealing the attributes of NFTs.
The metadata disclosure step should be the last step to ensure that the entire launch is not susceptible to exploitation. Note that leaking the metadata of an NFT collection can give attackers all the information they need to select the rarest NFTs.
Well, storing the metadata until the mint is over is the best way to mitigate against such exploits.
There are three options to consider when determining when to display metadata for a newly launched NFT collection.
- Full collection disclosure: Here, the big disclosure takes place after all the NFTs have been fragmented. Although this gas is efficient, it can delay the appearance of metadata, especially if the collection does not sell quickly.
- Per-NFT Disclosure: The second option allows metadata to be disclosed on a per-NFT basis. In other words, each user can decide to reveal the attributes of their NFTs as soon as they mint them.
- Batch Disclosure: There is an option to use a batch system which allows for a more flexible disclosure style. With this, users either choose to open their NFTs after they are minted or wait for the metadata disclosure date set by the operator.
Result
In this guide, we’ve discussed some of the key processes involved in NFT launch and how they can be optimized. Overall, the main goal is to prevent exploitation, maintain fairness of distribution and reduce the cost of minting NFTs.
Now go ahead and launch your NFT collection!
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