Explanation of NFT Market Trading Models - Uptick Service Documentation

Fixed Price Sale

Model Description: This model applies to a single NFT or multiple NFTs, where the seller sets a fixed price for the NFT(s), and the buyer can purchase it directly at that price.

Features:

Simple and straightforward; no bidding is required between the buyer and seller.

Suitable for quick sales and NFTs at a predetermined price.

Applicable Scenarios: Sellers looking to sell single or multiple NFTs at a fixed price.

Timed Auction

Model Description: Suitable for trading ERC-721 NFTs. The seller sets a starting price, a reserve price (optional), a buy-it-now price (optional), and a time limit. Buyers can place bids during the auction period, and the highest bidder wins the NFT once the auction ends. If no bids are placed, the NFT is removed from the auction when the time expires.

Features:

Potential for higher profits through bidding.

Time constraints create a sense of scarcity and urgency.

Applicable Scenarios: Sellers looking to auction a single NFT at a higher price through market competition.

Understanding Timed Auction Terms Before participating in a timed auction, it's essential to understand the following terms:

Starting Price: The minimum price at which the NFT can be auctioned. Any bids below this amount will be rejected.

Reserve Price Mechanism: If a reserve price is set, bids above this price will be accepted. If no reserve price is set, the highest bid at the end of the auction wins the NFT.

Buy-It-Now Price: If the bid exceeds the buy-it-now price, the auction ends immediately, and the NFT is sold at that price.

Withdrawal Mechanism: Sellers can withdraw their auction item before receiving a valid bid. Once a valid bid is placed, the auction cannot be canceled.

Minimum Bid Increment: Each new bid must be at least 5% higher than the current bid. If a higher bid appears, the previous bid will be refunded.

Extension Mechanism: Any bids placed in the last 10 minutes of the auction will extend the auction by an additional 10 minutes.

No Bid Mechanism: If no bids are placed by the end of the auction, the NFT will be considered unsold.

Auction Acceptance Mechanism: After the auction ends, the platform will follow these rules:

If a reserve price is set and the final bid exceeds it, the auction is "successful."

If the final bid is below the reserve price, the auction is "abandoned."

If no reserve price is set, the auction is "successful."

Auction Service Fee: The platform charges a 5% service fee on the final bid amount to maintain platform operations.

Discount Promotion

Model Description: Sellers offer NFTs at discounted prices, optionally binding the discount to the ownership of specific NFTs (e.g., all or any NFTs in a collection), encouraging buyers to purchase quickly to take advantage of the offer.

Features:

Attracts buyers with discounts, boosting sales.

Often used for marketing activities or to promote rapid NFT circulation.

Applicable Scenarios: NFT project owners or sellers looking to promote sales or attract attention with discount offers.

Exclusive Sale

Model Description: Sellers set conditions for eligibility, such as requiring ownership of specific NFTs. Only buyers who meet these conditions can purchase the NFT.

Features:

Offers a more private or targeted sales approach.

Buyers can be filtered based on specific criteria like identity or holdings.

Applicable Scenarios: Sellers offering exclusive or limited-edition NFTs to a specific group of users.

QR Code Claim

Model Description: This model involves users claiming an NFT by scanning a QR code.

Features:

Convenient claim method, ideal for offline events or quick NFT distribution.

Useful for giveaways or promotional events.

Applicable Scenarios: Engaging users through QR codes in online or offline events such as meetups, exhibitions, or campaigns.

Limited-Time Discount

Model Description: This is a special variant of fixed price sales, where the seller sets a discounted price for NFTs within a specific time frame. During this period, buyers can purchase the NFT at a discount. Once the time ends, the price returns to its original value.

Features:

Buyers can purchase NFTs at a discounted price within a limited time.

Creates urgency and motivates buyers to act quickly.

Increases sales and generates buying momentum.

Applicable Scenarios: Sellers looking to attract more buyers through promotional campaigns or limited-time offers.

Lazy Mint Sales Model

Model Description: In this model, sellers can choose "lazy mint" NFTs. The seller lists the NFT and sets a price but does not mint the NFT (i.e., does not create it on the blockchain) until it is sold.

When a buyer makes a purchase, the NFT is minted and transferred to the buyer.

Features:

Saves minting costs: Sellers avoid paying minting fees before a sale is confirmed.

Easy listing: Sellers can quickly list and showcase NFTs without minting them in advance.

Applicable Scenarios: Sellers who wish to reduce upfront costs, especially if the NFT sale is not guaranteed, and want to minimize risk.

RWA Mint

Model Description: RWA Mint, based on the ERC-1948 protocol, supports NFTs with dynamic data updates. Similar to lazy minting, the NFT is not minted at the time of listing. Instead, the metadata of the NFT can be updated or modified dynamically during the sale or even after the transaction.

Once purchased by a buyer, the content of the NFT (such as metadata, attributes, etc.) can be updated in real-time according to predefined rules or conditions.

Features:

Dynamic Data: The NFT's content can be updated dynamically, moving beyond fixed metadata.

Flexibility: Suitable for NFTs that need content or status updates during the sales process or afterward.

Similar to Lazy Minting: The NFT is not minted until a purchase is made and is then linked to the buyer's wallet.

Applicable Scenarios: NFTs that require dynamic updates, tracking, or modifications of metadata throughout the NFT lifecycle.

Order Transaction Revenue Sharing
In the NFT market, revenue sharing consists of a platform fee and a creator royalty. Both the platform and creators collect a percentage from each successful transaction. The details include:

Platform Fee

The platform charges a service fee based on the final sale price of the NFT (typically 5% of the total transaction amount).

This fee supports the platform's operations, service guarantees, and feature maintenance.

Creator Royalties (Optional)

Creators can set a royalty percentage, and each time the NFT is resold, the creator will receive a share of the sale amount.

Royalties typically range from 0% to 10%, depending on what the creator sets.
Example If the final price of an NFT is 100 UPTICK, with a platform fee of 5% and a creator royalty of 5%:

Platform Fee: 100 UPTICK × 5% = 5 UPTICK

Creator Royalty: 100 UPTICK × 5% = 5 UPTICK

Seller's Final Revenue: 100 UPTICK - 5 UPTICK - 5 UPTICK = 90 UPTICK