Non-Fungible Tokens, commonly known as NFTs, are digital assets that reside on a blockchain. They exist natively in "token" form on the blockchain, but they are different from other "tokens" such as Bitcoin and Ethereum because NFTs are non-fungible (ie. not interchangeable). If you and your friend both exchange 1 BTC with each other, you both still end up with 1 BTC - they are fungible, so the end result is the same. However, the end result is not the same if you were to each exchanging 1 NFT - the end result would not be the same. It would be like exchanging limited edition baseball cards - they are baseball cards, but they represent different players.
Here at 5D, our NFTs are unique digital artworks and scarce digital assets. Often, they may even be redeemable for a physical representation of the artwork, created and produced by the artist themself. This additional feature depends on the NFT and the artist.
Why do NFT prices change?
Primary sale NFT prices on 5D may increase or decrease overtime - this allows for a few interesting mechanics. When the price is set to increase, we can reward early adopters with prices below our target price point. On the other hand, when we set the price as decreasing, we can run a Dutch Auction, where the price starts high and decreases over time until supplies are gone.
How do I buy / sell an NFT on 5d?
Navigate to an active drop and purchase your desired NFT. Congratulations! You are now an owner of a one-of-a-kind digital asset.
We're currently developing a marketplace where you'll be able to buy and sell NFTs in the secondary market. In the meantime, however, you can do so on aggregator platforms such as OpenSea or Rarible.
By staking (locking up) 5D NFTs for two months, you will be rewarded with a predetermined amount of 5D Tokens (5DT), made available to you incrementally over that period. You won't be able to access, transfer, sell, or unlock your NFT until the staking period is over.
Can I stake every or any NFT on 5D?
No, only NFTs dropped on 5D itself may be staked.
Can I stake every 5D NFT on 5D?
At this time, every 5D NFT can be staked.
Can I stake an NFT more than once?
No, each 5D NFT can only be staked once.
Why would I stake an NFT?
Users who stake their 5D NFTs will be rewarded with an amount of 5D Tokens (5DT) equivalent to the NFT's base USDC price converted into 5DT. You could think of this as a form of interest, paid periodically in the form of 5DT.
When do I receive my tokens from staking an NFT?
A fraction of your 5D Tokens (5DT) rewards - equivalent to [NFT's 5DT Cap / (60 days / average block time)] - are released every block until the cap is met at the end of the staking period.
Do I keep accumulating tokens if I don't un-stake my NFT after the locking period?
No, each NFT has a predetermined amount of 5D Tokens (5DT) which will be distributed, of which the maximum amount will be reached at the end of the staking period.
Can I stake an NFT that I bought on the secondary market?
Every NFT may be staked once, whether by the first or subsequent owners. Once it has been staked, future owners of the NFT will not be able to stake it.
What does it mean to redeem an NFT on 5d.co?
This means that you can elect to receive the physical representation of the digital artwork tied to your unique NFT. These physical artworks are also designed and created by the artists themselves.
Does it cost me anything to redeem an NFT?
While there is no additional cost for the redeemable itself, there are shipping fees involved. Unfortunately, due to the size, material and value of many of the redeemable NFTs (e.g. 70cm cold cast resin statues), shipping prices can be substantial. We will make our best estimation for shipping prices for each drop but please keep this in mind if you plan to buy an NFT to redeem it.
How do I redeem an NFT?
To redeem an NFT:
Buy a redeemable 5D NFT.
Stake the NFT in the foundry.
Redeem the NFT in the foundry at any time while the NFT is staked.
Complete the checkout form and pay for shipping.
Can I redeem an NFT more than once?
No. Redeemable NFTs are a representation of a unique physical item; each one can only be redeemed once for their associated physical good.
Why can't I redeem my NFT?
There are several requirements that must be met before redeeming an NFT:
1. It is a 5D NFT with a listed redeemable component.
2. It currently is or has been staked on 5D.
3. It has not been previously redeemed.
4. We have finalized logistics and enabled redeeming for that specific drop.
Can I redeem an NFT bought on the secondary market?
Yes, as long as it has not already been redeemed. When the 5D market launches, redeemed NFTs will be marked as such. We are currently building a tool to check the staked and redeemed status of NFTs for external marketplaces.
How do I know if an NFT is redeemable for a physical piece?
NFTs with a redeemable component are clearly marked with "Redeemable."
Is there a time limit on when I can redeem my NFT?
Due to manufacturing logistics, most redeemables will only be available for predetermined and limited time (ex. a few months). The redeemable details of each NFT will be clear on this time period.
When will I receive the NFT that I redeem?
Most of the redeemables will be manufactured in bulk in exact numbers, so there is a waiting period to allow everyone who plans to to redeem to do so. Then there is manufacturing and shipping time. In total, it may take a few months for you to receive your redeemable. The estimated delivery time will be communicated for each NFT.