What are Open Edition NFTs?

Open Edition (OE) NFT, Open Edition NFT, refers to the NFT series that allows users to have unlimited Mint within a limited time. These NFTs have no difference except the Token ID, and are common in the issuance of NFT artworks.

The concept of Open Edition actually comes from traditional art. Simply put, an unlimited number of prints and sales of a work created by an artist are called Open Edition, also called Infinite Edition.

OE NFT is slightly different. OE NFT generally limits the Mint time, that is, unlimited Mint can only be used within a specified time, and it will stop after the time is exceeded, so the Open Edition will eventually have a quantity upper limit.

Features of Open Edition NFT

Advantage

1. Low threshold for participation

OE NFT has a low threshold for collectors to participate. OE NFT can be Free Mint or paid Mint. Usually the price is relatively low, and the sale price of many projects will not exceed 0.1ETH, which gives everyone the opportunity to buy the works of their favorite artists; for For creators, it can also allow their works to reach more collectors.

2. Low creation difficulty

Taking the most common 10K PFP project of NFT as an example, the creator needs to do a lot of design around the "uniqueness" of each NFT when creating, and also consider the scarcity of different combinations and other issues, while OE only has one version, all The works are only distinguished by the Token ID, and the creator only needs to focus on the artistry of the work itself, which reduces the creator's creative pressure.

3. Easy to start

The issuance of OE NFT is also relatively simple. Most OE projects are released through platforms, such as Manifold, Zora, Highlight, etc., without the need to deploy contracts by yourself. Creators only need to upload their works on the platform and set some simple parameters such as sale time, sale price, and royalties to automatically publish them, which lowers the threshold for traditional artists to enter the NFT field.

insufficient

1. Value expectations are relatively low

The price is affected by market supply and demand. Since there is no limit on the casting period of OE projects, the issuance volume is generally relatively large. Except for some special numbered NFTs, the price of a single NFT is generally not high. Without additional means ( (such as synthetic destruction, etc.), the future upside potential of NFT is quite limited.

2. It becomes more difficult for users to select projects

Open Edition lowers the threshold for creators to issue NFT. This is a double-edged sword. On the one hand, it allows more outstanding creators to enter NFT. On the other hand, it may also lead to a large number of junk projects flowing into the market and increase investment. The difficulty of selecting projects.

For example, in the past, in addition to the work itself, the quality of an NFT project could also be judged through the construction of the official website, the planning of the road map, and the activity of social media. However, there were almost none of these for OE projects, so when investing in OE projects , which actually puts forward higher requirements for investors’ ability to judge market trends and perceive emotions.

How to play the Open Edition project

Although Open Edition can bring a high degree of participation to the project through the "limited time and unlimited casting" model, there will be a problem that comes with it, that is, the huge circulation will suppress the price of NFT.

Since most of the participating users in the market are speculators and not fans who pay for the artist's works, if the NFT price performance is not good, it will greatly affect the subsequent development of the project. Therefore, project parties generally use some means to empower NFTs, the most common of which is deflation destruction.

Take the Checks project released by Jack Butcher as an example. The project sale price is 8 US dollars and the sale time is 24 hours. During the period, a total of 16,031 NFTs were minted. The current floor price exceeds 2ETH, which has increased more than 400 times, and the total transaction volume has exceeded 40,000. ETH.

One of the important reasons why Checks can have such market performance is that it uses a destruction mechanism to reduce the circulation of Checks and increase its rarity.

Each user initially mints a picture containing 80 logos, and then the user can synthesize a smaller version by destroying two pictures with the same number of logos. For example, players can destroy two 80 Check NFTs to get a 40 Check NFT, two 40 Check NFTs to get a 20 Check NFT, and so on, and finally get a 1 Check NFT with only one logo. If the 1 Check NFT is successfully minted, players can continue to burn 1 Check NFT to mint the final and most unique Black God 0 Check NFT, which has a supply cap of only 3.

It can be seen that obtaining a 1 Check NFT requires 64 initial NFTs, and the initial supply is more than 16,000, which means that the upper limit of 1 Check NFT is 250, and as more NFTs are burned and destroyed, the overall supply of Checks NFT will increase. will go down, and the cost of obtaining it will get higher and higher. This is the logic behind the appreciation of Checks NFT.

Of course, this method of playing is not suitable for all projects.

Open Edition is generally suitable for projects that already have a certain fan base or projects released by already famous artists, such as The Killa Chronicles released by Killabears and the Proceed w/Caution NFT series released by Lucrece, both of which are relatively popular and Project parties that have been recognized by the market in the past have relatively high "value expectations", so after the release of OE, it can cause FOMO among users, and the floor price has also increased many times. But if it is an unknown cold-start project, adopting the OE distribution method may lead to the embarrassing situation of no one paying attention.

Summarize

In fact, whether it is Open Edition or last year's popular Free Mint, CC0, etc., they are all new narratives generated in the context of the lack of popularity in the NFT market. This reflects the lack of new hype themes in the market, and the market has always been speculating on new things. There is no need to speculate on the old, so when the new concept of Open Edition appears, it will naturally attract a wave of attention and funds.

Open Edition does bring new ideas to the current NFT sale, and also satisfies the market's hype demand for "low market value" projects. However, the release threshold of Open Edition itself is not high. Once the market is saturated, user interest will naturally decrease. . Therefore, in the long run, OE NFT still tests the project party’s market value management and design capabilities in NFT empowerment.