• New Token Standard Reduces NFT Creation Costs

  • The cliché that bear markets are good for building has the advantage of being accurate.

    On July 15, Charged Particles, a startup that allows users to deposit digital assets into NFTs, announced a new token standard known as ERC721i.

    The standard adds new functionality to the NFT space. ERC721i will enable developers to pre-mine their projects’ NFTs at a cheap cost. To illustrate the possibilities of ERC721i, Charged Particles used the standard to manufacture one million NFTs for less than $2.

    On-chain NFTs

    This is significant because, while creators obviously create the art for NFTs before minting them, ERC721i will enable creators to engage with their NFTs on-chain before they are distributed to the public.

    “I separated concerns – mints from transfers,” Rob Secord, Charged Particles’ CTO, said on July 18 through Discord.

    Charged Particles enables NFTs to hold other digital assets, such as other NFTs and fungible tokens, within them. ERC721i would provide the author of a project access to such capabilities before they hit the network and became traded.

    An example use case for “charged” NFTs could include using them for voting, but also as a time-lock for equity tokens and as a sort of postbox to send dividends or other digital assets to their owners.

    These functions are now relatively hazy. Secord recognized this, stating that he was attempting to provide developers with options rather than solving all of the difficulties with NFT mints.

    According to Secord, even if the digital assets are pre-minted using ERC721i, customers purchasing the NFTs for the first time will have to pay about the same fees to move the NFTs to their own wallet.

    Gas Surcharges

    The second capacity of ERC721i has a greater impact on NFT buyers. “Now consumers can choose exactly what NFT to buy instead of getting a random one at mint,” Secord explained.

    Of course, this may have drawbacks, such as people paying extra gas prices to snipe rare NFTs early, creating a less fair playing field for others seeking to roll the dice and obtain a rare digital asset.

    However, as Secord stated, ERC721i is not intended for all NFT applications. Giving creative options is important to him.

    According to a Dune Analytics query by hildobby, NFT trade volume was down 96.3 percent to $36.8M on July 17 after hitting $1B in January. NFT producers may be willing to attempt everything to breathe new life into the market.

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