Implementing a good NFT launch can be very complicated, in an era where decentralization and blockchain have revolutionized the way a fundraiser is done. If you think about ICOs, past, for example, you will surely remember unclear processes where you paid even before receiving a product. For this reason, it’s better to follow some tips and advices from the leaders of this industry, so you won’t make any mistakes and errors.
We reached out Jason Hsu, the Co-founder of KryptoGO USA, a SaaS provider for affordable and lightweight KYC/AML solutions, and product-marketing figure at BitMart (a crypto exchange that operates in the US. In charge of token listings and their life cycles), a few steps on how to do everything correct with the launch of your first NFT.
Bidding
During the launch of an NFT, the bidding phase represents the phase in which bids are accepted. You can proceed in two ways: have bidding at the same time as clearing, or in two separate phases.
Hasu’s advice is definitely to operate in two distinct and separate phases. In fact, if the clearing, i.e. the release of the pieces on the market took place together with the bidding, there would be several problems.
If the operator guesses the price, the items would be expensive, while if the piece was undervalued the NFTs would be too cheap, and there would be the usual “race” to satisfy the miner for the transaction. As a result, there would be many losers, as several transactions would fail.
By separating the processes, on the other hand, users have time to prepare bids, and the operator can compare it to their own pieces. The only limitation is the fun factor, as wait times are longer than normal. The times, therefore, should be a maximum of 48 hours, always respecting the time zone of the user.
A further advice is not to use only on-chain or only off-chain transactions. With the former, in fact, you can allow miners to liquidate winning bids. But by collecting off-chain data, users can sign a message expressing the number of tokens to buy, the price and so on.
Distribution of NFTs
After checking between offers, the market is opened, and you start distributing tokens, minting them and sending them to users. This is where the gas factor and meeting all the pre-determined conditions will come into play.
Gas increases as the demands increase in a short period of time. So, it might be easier to use randomness and avoid a collective request that would cause gas fees to soar. The problem, however, would always lie in the waiting time.
Metadata disclosure
Once put on the market, you can reveal the metadata of an NFT launch, making sure that this is the last step. It is also advisable to wait for a block to pass between payment, deployment, and data revelation to prevent rerolling.
Rerolling is exchanging attributes in violation of the fairness principle. We then create 3 options for revealing the metadata of an NFT deployment.
Each of these steps must adhere to all principles of fairness, randomness, anti-exploitation and inclusion, as well as safety and design!
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