Numerous successful creators of non-fungible tokens (NFTs) have experimented with various techniques to increase the value of their projects.
Early collections of profile pictures, such as CryptoPunks or Bored Ape Yacht Club, have introduced rarity traits to their collections, making some NFTs more scarce than others. More recent collections have added utility to ensure that NFTs in a collection continue to be valuable to their holders over time.
Over the past few months, the NFT market has experienced a downturn due to an extended crypto winter, resulting in reduced trade volumes and fewer new participants in the field. Consequently, many new NFT projects have had to adjust their strategies to increase the exposure of their artwork.
One approach that has gained renewed interest is the open edition, in which an NFT project permits any number of artwork editions to be created. This contrasts with projects that limit their collections to a specific number of NFTs, such as 10,000 editions.
Open Edition NFTs refer to digital assets or collectibles that can be minted without any limit to the number of copies collectors can generate. In contrast, Limited Editions set a specific limit for the number of art or collectible copies. Open Edition NFTs can be classified into two types: Timed Open Edition and Infinite Open Edition.
Timed Open Edition NFTs are collectibles that can be minted repeatedly during the creator's designated mint period. Once the mint period is over, collectors no longer have access to getting more copies of the NFTs.
In contrast, Infinite Open Edition NFTs can be generated repeatedly without an end time, allowing collectors to create more copies as long as they want.
Open Editions utilize the blockchain to create digital certificates of ownership for the collectibles. All transactions of the artworks or digital assets are recorded on the blockchain, and the creator earns a percentage from the sale of each digital asset at a small price.
Open Edition NFTs may have a large supply, but they offer several advantages that make them appealing to creators and collectors alike. Here are some benefits of an Open Edition NFT:
Cost-effective: Open Edition NFTs are usually priced under $10, making them affordable and accessible to a wider audience. This also lowers the barrier to entry for new users in the Web3 space.
Artist Control: Creators can maintain complete control over their artwork and reach a broader audience. The ability to continually add value to their collections can attract buyers willing to take a low-risk investment.
Fan Support: Open Editions offer collectors a way to support and appreciate their favorite creators. For example, collectors can choose to mint an unlimited number of NFTs to show their love and encouragement for an artist they admire.
Brand Promotion: As more people purchase from an Open Editions NFT collection, the creator's name and work become more widely recognized, eventually leading to global relevance.
Flexibility: It's easier to create Open Edition NFTs than Limited Editions because they don't require complex programming languages.
Limited edition NFTs rely on the concept of scarcity, where a predetermined number of NFTs are available for collectors to mint. Once the total number of NFTs is reached, collectors who missed out on the initial minting will have to resort to purchasing from the resale market.
Many of the most popular NFT projects, such as the Bored Ape Yacht Club (BAYC) collection, are limited to a certain number of pieces. For instance, the BAYC collection only includes 10,000 unique pieces of art featuring bored apes. These limited edition NFT projects may also offer unique artwork, where each NFT is algorithmically created based on various attributes like expressions, clothing, and accessories.
Although open edition NFTs are gaining popularity, limited edition NFTs continue to hold a significant place in the NFT market. Collectors tend to prefer rare art, and limited NFTs with low supply are particularly appealing to those who enjoy exclusivity.
Firstly, the high price point of Limited Edition NFTs created a barrier for many collectors who were interested in purchasing NFTs. Limited Editions are typically priced at a premium, with some even selling for millions of dollars. This pricing structure made it difficult for average collectors to participate in the NFT market, leaving a gap for a more accessible alternative to emerge.
With no set limit to the number of NFTs that can be minted, Open Editions offer a more affordable option for collectors. This made them a more attractive choice for artists looking to build a broader audience, and collectors seeking to support their favorite creators.
Additionally, many Open Editions are tied to online communities and social media platforms. This creates a sense of community and social proof that can help the NFT project gain more visibility and credibility. For example, some Open Edition NFT projects have gained traction through social media trends such as profile picture (PFP) collections. These collections offer a fun way for people to participate in the NFT market, as well as a chance to be part of a larger community.
Another reason for the popularity of Open Edition NFTs is the ease of creation. Creating an Open Edition NFT requires less time and resources than creating a Limited Edition NFT, as there is no need to create unique, one-of-a-kind pieces. This lower barrier to entry has led to an increase in the number of creators launching Open Edition NFT projects.
Finally, the recent market downturn has played a role in the popularity of Open Edition NFTs. As the market becomes more volatile and unpredictable, collectors are looking for safer investment options. Open Editions offer a lower-risk investment opportunity, as the cost of entry is typically lower than Limited Editions.
It's highly probable that open edition NFTs will become increasingly prevalent in the future. Similar to how numerous brands create products without any predetermined limit, it's unlikely that these same brands will restrict the number of NFTs they offer, especially when products come standard with NFTs.
If you take a step back and contemplate what an open edition NFT genuinely represents, you'll quickly realize that it's no different from brands that create an unlimited number of products. However, while the utility of a physical product like a shoe or a shirt is apparent, the usefulness of most NFTs isn't.
And that's the crux of the matter. NFTs won't always be restricted to digital tokens on the blockchain. Soon, brands will start incorporating NFTs into all their products and services without any limitations on how many you can purchase.
While this concept may be difficult to comprehend now, especially since we've been conditioned to view NFTs in a particular way, looking past the current perception of NFTs is crucial to understanding how open editions can be utilized in the future.
Contrary to popular opinion, not all NFTs must have a predetermined limit. Moreover, creating an open edition NFT isn't limited to artists or influencers in the field; anyone can create one.
The minimum score to pass the NFT Quiz is 70% of correct answers.
NFTs offer a variety of uses. They are, for example, an excellent vehicle for digitally representing actual assets such as real estate and artwork.