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What problems does it solve for NFT creators?
All NFT creators and blockchain-based DAPPs that are into creating and selling NFTs need a marketplace to sell their newly created Non-fungible assets.
There are two ways how people are selling NFTs:
1. By Listing Their NFT Token On A Marketplace Like Opensea, Rarible, Foundation etc.
2. By Creating Their Own NFT Marketplace
Now, here’s why these two conventional methods are more of a problem than a facilitator:
- If you are listing your NFT on a marketplace:
a) Cuts a hole in your pocket: The costs to sell an NFT through a marketplace is exorbitant. To get your NFT listed, you have to shell a significant percentage — then there’s a commission on the sale. Here’s how an artist talks about their experience of how much they make selling an NFT through a marketplace.
b) No Control: NFT marketplaces have their own terms and conditions. They even control the price, the number of visitors and the positioning of your NFT on the marketplace. Your token on a big marketplace gets lost in a sea of other tokens. You cannot have custom features. You have to play by the rules that are not meant for your benefit.
c) Zero Connections Or Opportunities: Once you list your tokens, all you can do is wait for someone to buy them on the marketplace. You do not have any “real means” to promote yourself on the platform — and such promotions are again very costly. Also, you are not able to connect to other sellers.
d) Royalty Fees: On average, existing marketplaces allow up to 10% royalty fee for creators. Xircus provides flexible royalty for creators and they can get up to 15% share, and collectors can receive from 1% redistributed royalty shares after the third sale.
e) Commission: Existing NFT marketplaces charge up to a whopping 35% on first sales. That makes it difficult for new Creators and DApps to enter the market. Xircus eliminates this middlemen fee. We don’t have any commission on sales, only minimal transaction fees between 2.5% and up to 5%.
The problem here is, a successful selling strategy would require you to get your fans to sign up on a third-party marketplace, purchase your NFT and then pay a commission to the marketplace operator entity. It’s a total loss.
- We move on to the next best option that is if you are creating your own NFT marketplace:
a) Capital Intensive: Think of launching a blockchain-based DAPP or tokenizing an existing platform without leveraging an existing blockchain network or using the smart contract feature. Imagine if there were no Ethereum or Solana or Matic or any other “smart contract” provider — how hard it would be to create an entire blockchain network from scratch? Creating a custom NFT marketplace can be equally complex and capital intensive. That explains why many DApps and creators end up paying what’s rightfully their’s to third-party marketplaces.
b) Time Consuming: Creating a custom NFT marketplace requires professional developers and designers working for hundreds of hours. It may take months to create and launch a custom NFT marketplace without Xircus.
Last modified 9mo ago
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