Everything You Need to Know About NFT Button on Tezos
NFT Button is a general-purpose permissionless marketplace on Tezos launched on August 12. Here, we take a closer look at how it works and what distinguishes it from other NFT marketplaces on Tezos.
The Buttonists team is one of the winners of Tezos DeFi Hackathon. August 12, they launched NFT Button, an NFT marketplace of general purpose featuring a full-fledged secondary market for NFTs on Tezos. The marketplace will facilitate selling NFTs in traditional and experimental ways, the latter known as Buttonist auction. Aside from that, one will be able to get discounts for staking NFTs. Let’s check out those features in greater detail.
General-purpose Permissionless NFT
NFT marketplaces can be permissioned/permissionless and specialised/general-purpose.
Specialised marketplaces enable one to trade a certain type of NFT such as digital art or NFT of a particular project. General-purpose marketplaces allow all kinds of NFTs.
NFT Button is a general-purpose permissionless marketplace, which means that anyone can create their NFTs on the platform and sell them regardless of what is tokenized through those NFTs: digital art, in-game objects and characters, domain names, or charities.
Full-fledged Secondary Market for NFT
NFT marketplaces have primary and secondary markets. The former features creators selling tokens to users, while the latter is about users re-selling their NFTs.
Kalamint and hic et nunc only allow you to trade NFTs created at those platforms. Thus, you cannot release or buy an NFT on hic et nunc and then sell it on Kalamint and vice versa. For the same reason, you can’t sell NFTs by projects like Tezos Domains on those marketplaces.
On NFT Button, there is a full-fledged secondary market for all non-fungible FA2 tokens. To sell your NFT, you specify the NFT’s smart contract address and ID, put in the item’s details, and that’s it. NFT Button’s smart contract accepts the token for sale. The user also can issue their token via the standard NFT minting function, which includes royalties among other things. But you don’t necessarily have to mint your NFTs on NFT Button to sell them at the marketplace.
Four Ways to Sell NFT
There are two traditional ways to sell an NFT: at a fixed price and through English auction where users compete for the right to own an NFT by raising the ante. There are four types of lots on NFT Button: fixed price, English auction, free drop, and Buttonist auction. The first two are well-known so we’ll talk about the rest.
A free drop allows you to put an NFT (or a set thereof) up for a free distribution. Anyone can click Get and obtain one NFT. Why would you need that? It depends on whether your NFTs have royalties.
If there are no royalties, it could be a promo campaign or a community reward. If there are royalties, it could be an experimental business model: you give out your NFTs for free but get royalties for each time they are sold on secondary markets.
It is an experimental kind of all-pay auction. Here, you can’t make a bid that returns to you if you lose the auction. By bidding, you pay a fixed amount in order to become the leader of the auction. If someone clicked it after you, they become the leader in your place, and you have to bid again to reclaim your leadership.
The auction has a timer and when time runs out the current leader gets the NFT. To avoid last-moment bids, each time Bid is clicked, the time resets at a lesser value than it had been for the previous leader.
All payments are accumulated and go to the NFT’s seller once the auction is over. The seller can put up 0% to 100% of the raised funds to share with the winner on top of the NFT.
A Buttonist auction can be used for commercial and charitable causes. In case of a charitable English auction, only the winner’s bid goes to charity. In a charitable Buttonist auction, everyone can make their contribution by clicking Bid and becoming a leader for the moment.
NFT marketplaces charge a fee from the NFT’s selling amount, and NFT Button is no exception. Right now, the platform’s fee is 5%. You can have up to 50% of discount by staking NFTs of another project by the Buttonists, Tezos Mandala.
One staked mandala gives you a 12.5% discount on fees. Staking four ensures the maximum possible discount. The more mandalas you stake, however, the more NFTs you can create over 24 hours, and the more NFTs you can put up for sale simultaneously.
In their comment for Tezos Ukraine’s blog, The Buttonists team said:
“Of course, we aren’t going to stop at that, it’s only the beginning of our way. Right now experimental features like royalties drop, Buttonist auctions, and using NFTs as discount cards. We want to keep being in the avant-garde and experimenting with the most original ideas in NFT.
“Right now, we need some time to see how what we have now works, and to improve UX/UI based on the feedback from our users. The first thing we’re going to add is tabs for Art, Gaming, Domains, etc as well as galleries. Some later plans include cross-platform royalties, stablecoins support, initial offering of generative art collections, NFT fractionalising, and, of course, the next evolutionary steps for our tokenomics.”
We will keep watching the NFT market on Tezos and keep you posted about new developments as long as you are subscribed to our social media channels: