Metale Tutorial #10: 721 NFT Model
Metale Protocol
This tutorial is one of the three most important as it explores the second available NFT economic model on the Metale platform: 721. It covers two major paths: for creator and for merchant. Since this NFT standard is the most basic and widespread (such as PFP NFTs or NFT Art on @opensea), it is the easiest to understand.
721 NFT Model: Basics
ERC-721, referred to as 721 on Metale platform, is a standard for representing ownership of non-fungible assets. Unlike fungible tokens (such as ERC-20 tokens like Ethereum or Bitcoin, which are identical and can be exchanged on a one-to-one basis), each ERC-721 token is unique. This uniqueness makes ERC-721 ideal for representing individual assets like artwork, collectibles, real estate, and even identities.
Now, with the advent of Web3 and decentralization in content and entertainment realm, this standard could gain new strength, revitalizing the entire NFT industry by allowing NFTs to be registered as IP assets.
ERC-721 tokens (NFTs) allow you to tokenize the ownership of copyright and attach to it a unique identifier. This aspect makes the token one of a kind and vastly different from BEP-20 tokens. With BEP-20, developers can create multiple identical tokens within one smart contract. However, with ERC-721, each token is assigned a different token ID.
On Metale platform, the 721 NFT model is implemented in a novel and unique way. Each NFT encapsulates a part of IP copyright, with 1 NFT equating to 1 copyright share. Thus, when a creator publishes content on the Metale platform and allocates 100% of the copyright into an NFT collection with a total supply of 5000 NFTs under the 721 standard, each NFT represents 0.02% of the copyright. By owning 50 such NFTs, merchant possess 1% of the copyright for that work.
Copyright ownership allows merchants to instantly distribute profits through various mechanisms, including monetizing content via mainstream methods (such as a pay-per-view model) and NFT trading on the Metale NFT market. The proportion of copyright ownership varies depending on the number of NFTs owned, directly influencing the amount of revenue shared.
Additionally, Metale platform offers additional use-cases for 721 NFTs, enabling each NFT in a content collection to be truly distinct by assigning specific rarities and covers. For instance, consider a short drama NFT collection with a total supply of 100 NFTs. If the drama features 20 main and side actors, the production team can upload a photo of each actor in a single copy when releasing this drama NFT collection. This would result in only 5 identical NFTs per actor, making the rarity of each such NFT 5/100, or 5%. On Metale platform, creators have complete creative freedom to determine the economic model of their content NFT collections, enabling various scenarios for developing their fan base of NFT owners (DAO). We encourage content creators to leverage this freedom to make their NFT collections unique and special.
721 NFT Model: Creator
Now, let's make things simple for creators of all types of content on Metale platform. Below is a step-by-step guide from issuing a content NFT collection to sharing the first revenue by trading your NFTs on Metale NFT Market. Note the hyperlinks that redirect to other basic tutorials.
1. Connect Wallet on Metale platform:
2. Check the pop-up profile dashboard on the top right (there are no tokens/points if the account is new):
3. Make sure you have a small amount of $BNB to cover the on-chain transactions gas fee. When creator publishes the content on-chain or does other interactions on the blockchain, paying the gas fee is a mandatory step. However, since Metale platform supports opBNB as of June 22, the gas fee per transaction is ultra-low and reaches 0.000002 $BNB ($0.001). There are different ways to get $BNB on opBNB chain:
A. Simply use thedirect BNB/opBNB cross-chain bridge on Metale platform.
B. Send $BNB using opBNB chain from external platforms such as Binance.
C. Use official opBNB bridge.
4. Now you can operate and release your content NFT collection by clicking on CREATE:
5. After you read Metale Tutorial #3: Create Overview and submit your work & upload your content:
- Come up with a token ticker for your 721 NFT collection (C).
- Select the total amount of NFT supply of your content collection (D).
- Upload single or multiple (not limited) number of covers for each NFT in your collection, set up their rarity: here 5 different images = 5 various types of rarity (E).
- Choose the type: here "NFT" (F).
- Read and confirm the copyright statement content, then submit application (G).
Important note: the total supply of NFTs may decrease if the creator destroys unsold NFTs, but it cannot increase. The creator can increase the copyright ownership ratio of each NFT through this mechanism but cannot decrease it. The community and users can also achieve this by repurchasing and destroying NFTs.
6. After signing the on-chain transaction, your content NFT collection will be issued on the Metale platform. You can explore your NFT collection page and read more about all sections and features on this page in Metale Tutorial #4: Collection Page. For example, Items section looks as follows:
A. NFT order: Check the available NFT orders within the collection (when you or merchants set them up). Depending on the NFT collection economic model, NFTs in both 721 and 404 standards are listed here.
7. Check your content NFT collection's metrics and edit in Profile > Created section:
8. To operate with NFTs (set up sell orders) of your content collection, navigate in Profile > Collected > NFT section:
9. To launch a content NFT collection on Metale Launchpad and utilize the crowdfunding feature to raise funds for its realization (for instance, an innovative fundraising tool for short drama production teams), read more in Metale Tutorial #7: Launchpad Guide.
721 NFT Model: Merchant
To be released on June 25.
[Disclaimer] Not financial advice, always do your own research (DYOR).
About Metale Protocol
A new-era global content distribution protocol that provides on-chain services for content subscription, transparent profit-sharing, and asset transactions.
