Author: Contributor Date: 2022-05-06 06:43:53
Get The Latest News And Updates From Phemex!
Register to get $180 Welcome Bonus!
Email
Password
Invitation code (Optional)
NFTs have set the world of cryptocurrencies on fire. Over the past year, collectors, artists, and developers have all found new and innovative ways to jump on the NFT bandwagon, but while buying and selling these unique digital assets is fairly straightforward, minting a token of your own can present unexpected complications.
If you’ve ever completed a transaction on Ethereum, you’d be familiar with the high gas fees associated with the network. Ethereum 2.0, the proposed upgrade to the Ethereum blockchain ecosystem, has yet to implement its cost-reducing measures, making NFT minting quite an expensive ordeal. However, high network fees have done little to mute the demand for NFTs, and to tackle the issue of exorbitant production costs, the NFT market has resorted to the concept of lazy minting.
What Is Lazy Minting?
Lazy minting is when an NFT is available off-chain and only gets minted once a sale takes place. This means that the artist does not have to pay any upfront gas fees to mint their NFTs, essentially paying the fees only once the token is purchased.
How NFTs Are Minted?
Minting is the process of turning a digital file into a crypto-collectable or non-fungible digital asset on a blockchain. The digital item is stored in a decentralized database or distributed ledger, and is impossible to edit, modify, or delete. This process of uploading a specific item and assigning it to a unique token on the blockchain is known as minting.
Minting: Step-by-Step
- To mint NFTs you need the appropriate smart contract in place. However, you don’t need to be a blockchain developer to complete this operation; NFT marketplaces have the relevant smart contracts required to perform this action.
- On a blockchain, a gas fee must be paid to write any new information to the network. This is similar to a transaction fee, and can cost NFT producers a pretty penny.
- NFTs can be sold on marketplaces like Rarible or OpenSea. It’s important to remember that each marketplace comes with different minting options.
While it’s difficult to estimate how long it takes to mint a particular NFT, most NFT platforms, tools, and marketplaces try to make it as easy and straightforward as possible.
What Are The Benefits Of Lazy Minting?
There are several benefits to lazy minting, including:
- Muting the impact of gas fees: By shifting the gas fee payment to mint NFTs post-sale, sellers can incorporate the fee into their pricing models, making the high fees less of a deterrent to budding artists.
- Lowering the barrier for entry: As mentioned earlier, one of the main benefits of lazy minting is that it lowers the barrier for entry imposed by the high gas fees needed to mint an NFT, making the process more affordable for artists and developers.
- Encouraging liquidity: Lazy minting encourages liquidity, since NFTs can only be transferred after being sold. This helps prevent sellers from being left with a collection of minted, unsold NFTs, and buyers aren’t left waiting indefinitely for the NFT to be transferred to them.
What Are The Disadvantages Of Lazy Minting?
There are also a few disadvantages to lazy minting, including:
Loss of control: Lazy minting removes upfront gas costs, but relinquishes a certain amount of control from the artist or developer. By choosing to lazy mint, the seller no longer has the final say on who purchases their work and when it’s transferred.
Potential for fraud: If a minted NFT is not sold, it remains in possession of the artist or developer, who is incentivized to sell in order to cover the gas fee. However, by offering lazy minting, there could be potential for fraud if someone were to sell an NFT but never mint or transfer it to the buyer.
Conclusion
Lazy minting is a booming trend in the non-fungible digital assets market, with several benefits for artists and developers. It eliminates the upfront cost of minting NFTs, making the process far more affordable and accessible. Additionally, the benefits of lazy minting aren’t reserved for artists and developers, since only sold NFTs are minted, removing unnecessary power-hungry transactions from the blockchain.
For any inquiries contact us at support@phemex.zendesk.com
Phemex | Break Through, Break Free
FAQs
Lazy minting is when an NFT is available off-chain and only gets minted once a sale takes place. This means that the artist does not have to pay any upfront gas fees to mint their NFTs, essentially paying the fees only once the token is purchased.
What is lazy NFT minting? ›
Lazy Minting is a process in which the creator does not have to pay the gas fee for minting the NFT upfront, and they can list it on marketplaces for sale. Whenever a buyer buys the NFT, it is minted just in time, and the minting cost is added to the total cost of the NFT.
Is lazy minting worth it? ›
Advantages of NFT Lazy Minting
You eliminate the upfront gas costs. Your NFT exists off-chain, and only when and if it is sold the buyer pays the gas costs along with the purchase price. It lowers the entry barrier. Gas prices, especially on the Ethereum blockchain, can prevent beginners from entering the NFT market.
How much does lazy minting cost? ›
Minting for free (lazy minting):
This minting option is free of charge. By enabling the "Free minting" option when you create an NFT on Rarible, you do not pay the blockchain fees. Instead, the person who buys your NFT will be liable to pay the fees.
How to cheaply mint NFTs? ›
How to reduce NFT minting costs?
- Lazy minting. Lazy minting has become a popular way of reducing minting costs. ...
- Minting the NFTs over a period of time. ...
- Reducing the number of transactions. ...
- Reducing transaction size. ...
- Use a Layer-2 scaling solution. ...
- Waiting for further developments.
What is lazy minting? Lazy minting allows you to create ERC-721 & ERC-1155 NFTs for free (zero cost). Your NFT will officially be minted only once a buyer purchases it because the buyer pays for the gas fees, not the creator.
Does OpenSea allow lazy minting? ›
You can use OpenSea's lazy minting feature to mint it at the time of the sale to avoid gas fees on Ethereum. I minted my NFT, but I want to change something about it. What do I do? If you're still the owner of the NFT and the NFT doesn't have frozen metadata, you can delete the NFT and re-mint it on OpenSea.
How can I avoid minting fees? ›
Setting a lower gas limit is one of the most straightforward ways to reduce fees. Lazy minting removes upfront costs for minting an NFT. No fees are paid until a creation sells. Gas fees are generally cheaper on weekends and nights.
Where can I mint NFT for free? ›
How to mint NFT for free? To mint NFTs for free, select a platform like OpenSea, Rarible, or Mintable that supports gasless minting or blockchains that don't impose fees for minting NFTs. Then, just create an account, upload your digital content, fill in the required details, and initiate the minting process.
How much is minting fee? ›
The cost to mint an NFT will vary depending on the marketplace you use and the blockchain you mint on. To mint on Ethereum, the most popular blockchain for NFTs, you'll usually have to pay gas fees, which can get costly. Along with listing fees and commissions, your costs could range anywhere from $0.01 to $1000.
Cost to mint NFTs using Different Blockchain
Solana is one of the blockchains that can cater to the creation of 10,000 NFTs. While the platform previously charged only 0.21 cents per NFT, its current fee to mint a single NFT stands at $2.16. At this rate, the cost of minting 10,000 NFT will be over $21,000.
Is it expensive to mint an NFT? ›
The cost of minting an NFT will vary depending on many factors, including the type of token, the blockchain platform you're using, and the size of your NFT. However, as a general rule of thumb, you can expect to pay between 0.25 ETH and 0.50 ETH per transaction.
Which is better, OpenSea or Rarible? ›
OpenSea vs.
OpenSea has a commission fee of 2.5% of the sale price, while Rarible charges a commission of 1% from both buyers and sellers. On OpenSea, NFT creators have a fixed royalty fee of 10%, but on Rarible, creators can earn up to 50% in royalty fees.
What is the difference between minting and lazy minting? ›
Lazy minting is a technique for creating non-fungible tokens (NFTs) that delays the minting process until the NFT is purchased. This approach contrasts with traditional minting, where the creator pays upfront gas fees to mint the NFT before it is listed for sale.
What is the best platform to mint and sell NFT? ›
OpenSea. OpenSea is the leader in NFT sales. OpenSea has all sorts of digital assets available on its platform, and it's free to sign up and browse the extensive offerings. It also supports artists and creators and has an easy-to-use process if you want to create your own NFT (known as "minting").
What is the cheapest way to create NFTs? ›
Use the gasless minting method to create your NFTs without the actual need to submit your NFT on a blockchain. This rectifies the need for any transaction as you do not pay a cent to create your NFT. In gasless minting, you can access NFT space without any barriers to entry fees, also known as gas fees.
What is the point of minting an NFT? ›
Minting an NFT means creating a unique token on a blockchain. Only after minting an NFT is the digital collectible stored on the blockchain.
How much money is required to mint an NFT? ›
Along with listing fees and commissions, your costs could range anywhere from $0.01 to $1000. However, thanks to a process called "lazy minting," as well as gasless marketplaces, there are now ways to mint NFTs for free!
Can you make an NFT without minting? ›
You can create your NFT directly on the platform, choose which blockchain you prefer, and mint or create the NFT directly.
What is the difference between minting NFT and buying NFT? ›
Minting an NFT refers to creating a unique digital representation of an asset on the blockchain. You can mint from a digital online project or covet existing items, such as art, memes, poems, or music, into NFTs. However, when you buy an NFT, you buy an existing item minted into an NFT.
Register to get $180 Welcome Bonus!
