NFTs are unique digital tokens that can be launched as part of a collection with a specific theme or concept that appeals to a particular audience.
They can also be used to digitally represent real-world assets, images, video clips, and other media types. NFTs were one of the first types of tokens to become popular within the Cardano ecosystem.
NFTs and their collections are among the simplest crypto projects to create on a blockchain, making them ideal starting points for small teams or individuals seeking to develop more advanced Web3 products or fund desired initiatives.
Thus, for newcomers to the blockchain industry, creating an NFT collection offers an accessible entry point.
In this guide, here are five things to consider before creating and launching a Cardano NFT collection.
#1: Create a Theme for Your Cardano NFT Collection
To start, every Cardano NFT collection needs a compelling theme to shape its identity and messaging. This theme is reflected in two main parts of each NFT: the media and the token’s metadata.
For the media, the theme defines the visual style of the collection, which can be expressed through images, animations, or videos. In the token’s metadata, the theme guides the description accompanying each token, adding context and appeal.
Images for the collection can be commissioned from artists or generated with increasingly popular AI tools. However, project developers using AI should ensure that generated images are available for commercial use, as some platforms require subscriptions or fees for commercial rights.
#2: Decide on the Characteristics of the Cardano NFT
Next, the token’s characteristics are an important factor.
The first question to address is: how many NFTs will be included in the collection? The number should strike a balance—too large a supply can compromise the token’s scarcity, while too small a supply may hinder discoverability.
An ideal number strikes a nice balance allowing creators to generate revenue without oversaturating the market.
Another key factor is the NFT’s utility. In some cases, an NFT may play a significant role within a broader platform or ecosystem. Utilities can include features like early access to new functionalities, trading discounts, revenue sharing, or membership benefits for DAOs.
Promoting the project should prioritize highlighting any utility associated with the NFT. Many buyers are drawn to projects where the token serves a purpose within a larger ecosystem, emphasizing the importance of specific utilities.
On Cardano, for example, popular DEXs use NFTs as cards that provide discounts to traders while DAO tooling projects such as ClarityDAO use NFTs for membership tokens. These are some examples of use cases in the ecosystem.
#3: Set the NFT Metadata
The next step is to create the token’s metadata template for the entire collection. This template describes each token, providing essential information such as its nature, supply, collection name, and other relevant details.
For NFTs issued on Cardano, the token’s metadata can be stored directly on-chain and add more textual data than those issued on other chains. This information is important for holding relevant information about the asset that has been tokenized as an NFT and enabling buyers to view it transparently.
Within the metadata, projects can also specify a royalty percentage. This means that every time the token is resold on the market, a percentage of the sale price could return to the creators as royalties. This mechanism allows projects to generate long-term revenue, contributing to their sustainability.
Related reading:
- How NFTs can offer royalty benefits to book authors and ownership privileges to readers
- 5 ways NFTs can provide unique benefits for musicians
#4: Select an NFT Storage Solution
Since the media component of the NFT is typically not stored on-chain, a reliable storage solution is necessary. Most projects choose to utilize decentralized storage networks such as IPFS or Iagon to host their images or other media files.
When selecting a storage solution, key considerations include the cost of storage and the frequency of payment for the service. Most networks offer subscription models for ongoing storage, while some provide permanent storage options for a one-time larger payment. Project owners should carefully evaluate these costs to determine which solution best suits their needs.
NMKR Studio provides the option to select IPFS or Iagon, two popular solutions for decentralized storage. Each can be accessed directly from NMKR’s platform and integrated into a project from the same menu.
#5: Choose a Platform to Sell the Cardano NFTs
Finally, it’s time to sell the NFTs to other users. At this stage, project creators have two primary options:
1) Launch a new platform where buyers can mint the NFTs directly.
2) Use an existing platform that offers minting services.
In most cases, the second option is the most advantageous for an NFT collection. Existing platforms can streamline the process, resulting in a quicker project turnaround while minimizing costs.
NMKR is an NFT and tokenization platform utilizing the Cardano blockchain. It enables businesses, individuals, Web3 projects, and developers to easily mint NFTs for trading without requiring coding skills.
By removing many technical barriers to creating Cardano NFTs, NMKR has closed the technological gap and broadened accessibility to a wider segment of potential users. Thus, those who use its platform can focus on the utility and design of the NFT collection and leave all the technological heavy lifting to the NMKR Studio platform.
Follow EMURGO on X and LinkedIn for more on NFT use cases
Interested in discovering more business use cases for NFTs, such as real-world asset tokenization?
Then, follow EMURGO on X and LinkedIn
About EMURGO
- Official Homepage: emurgo.io
- X (Global): @EMURGO_io
- YouTube: EMURGO channel
- LinkedIn: @EMURGO_io
Disclaimer
You should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained herein shall constitute a solicitation, recommendation, endorsement, or offer by EMURGO to invest.
