NFT FAQ

(Work in Progress)

General

What is a NFT?

A non-fungible token (NFT) refers to a digital asset that is built on the blockchain with a unique identifier allowing it to have a certificate of authenticity and ownership.

Should I buy NFTs for investment purposes?

NFTs should not be considered an investment opportunity. A NFT should be purchased because you value it for any variety of reasons, including to support your favorite artist/creator, or because you find the NFT aesthetically pleasing or exciting to own. The purpose of NFTs on Rally.io is to enable you to be a part of the communities of your favorite creators and participate in the exclusive benefits that may come with your ownership of a creator’s NFT.

Is there a royalty to the creator on NFTs?

For artists/creators selling physical goods, once the initial asset is sold, there may be an entire secondary market where the artists/creators do not see any cut of the revenue. Because NFTs are digital goods, the provenance of the original creator is coded into every NFT, and the record of ownership follows the NFT even after the primary sale. Accordingly, it is possible for the creator to launch an NFT where a percentage of proceeds from any future sales is automatically paid to the creator, based on the way that the NFT is designed and launched. This royalty is designed to continue to support their content creation by allowing them to participate in secondary sales of their work.

What blockchain will Rally NFTs be minted on?

Rally NFTs will be minted on an Ethereum sidechain.

How does the Rally Ethereum sidechain work? Who verifies ownership of the NFTs or other tokens represented on the blockchain?

The sidechain is effectively a Proof of Authority (PoA) network run on Rally.io: while the Rally.io sidechain verifies at the transaction level, the decentralized $RLY community of more than 40,000 $RLY token holders guides the project at the network level. We believe this provides for the right balance of decentralized, community ownership of a project, while still providing the efficiency and ease of use that is necessary to provide a user-friendly crypto product for a consumer audience.

What is the environmental impact of creating NFTs?

Because Rally NFTs are minted on the private sidechain, there is no Proof of Work algorithm work required, meaning that the environmental impact is far less for Rally NFTs than NFTs that are minted on the mainnet.

How are you able to reduce the carbon footprint of these NFTs so significantly? Is there a tradeoff?

The major contributor to the carbon footprint of NFTs on Ethereum mainnet is the electricity required to support the hash rate needed for Proof of Work. This is not required on a Proof of Authority side chain. The tradeoff is centralization.

What are the drawbacks to a more centralized NFT offering?

In any centralized system, there are trust assumptions associated with the party offering the service. In Rally’s case, users are trusting Rally.io to provide a stable, fast, free, and secure service while interacting with the private sidechain, things they aren’t trusting any entity to provide when using a public blockchain. Rally’s approach has been to be transparent about those trust assumptions while interacting with the private sidechain and offering straightforward options to move assets to a public blockchain (Ethereum mainnet).

What happens to the NFT if Rally.io ceases to exist? Are the files associated with Rally NFTs stored on a centralized server? Or decentralized?

Rally NFTs are maintained on a central server.

For Creators

I am a creator with Rally - how do I create NFTs?

In order to get a NFT created, creators will need to submit their NFT and the required information in this Request Form. Please have the following information ready:

  • Creator’s email address (must be the address matching their Rally account)

  • NFT title and description

  • Edition number (can be infinite if open edition)

  • Primary sale royalty splits (if needed)

  • Secondary royalty amount (%)

  • Secondary royalty sale splits (if needed)

  • NFT release date and time

  • Price (marked in USD)

  • Sell method (primary sale, auction, buy now (primary vs private), etc)

  • NFT file (see file type and size restrictions here)

Please note: NFT requests should be submitted at least 2 weeks prior to the requested NFT release date.

Are there any fees associated with minting NFTs?

No. Any creator who has a Creator Coin with Rally can mint an unlimited number of NFTs for zero fees.

Can I bridge in a NFT from another platform?

No, currently there is no ability to bridge in and sell a NFT that was minted on other platforms into the Rally.io sidechain.

Can I split revenue with multiple people?

Yes - for the first sale (whether it’s through a primary sale, open edition, auction, etc.), you can specify the percentage of revenue split among accounts at minting, along with the percentage each account should receive and the Rally username of each recipient account.

For secondary sale royalties, these can also be split among several accounts. Again, the creators will need to list the percentage each account should receive as well as the Rally username of each recipient account.

What does someone own when they purchase my NFT?

A NFT purchase in general means that the purchaser has bought the high-resolution digital file and the smart contract on the blockchain which contains the metadata of the creation. It does not give the purchaser any copyright ownership over the content of the art or license to use that content in any way.

Can I burn an NFT when it’s been minted?

You can burn an NFT after minting but only if no editions have been purchased; the entire NFT and all editions will be burned - you cannot burn specific editions. If any of the editions have been purchased, you will not be able to burn the NFT or the remaining editions.

Can I do private sales?

Yes, you can facilitate a private sale but not through nft.rally.io. You will need to sell via private campaign on rally.io or through a third-party site sale where you would then need to create the NFT and manually fulfill (send) the NFT after the sale has been completed.

Can I gift an NFT?

Yes, you can absolutely gift an NFT. You would create the NFT and instead of putting it nft.rally.io for sale, you would use the “send” feature to send it directly to the Rally account recipient.

Is there a max price for an NFT?

No, there are no technical limits for the max price for an NFT.

Is there a limit to how many of the same NFT creation someone can purchase?

Currently, there are no per-user purchase limits (ie. one user can purchase as many NFT editions as they want).

What are the file type and size restrictions for NFTs?

File size should be restricted to under 50MB and you can check out our accepted file types here.

Can I choose to sell my NFT in $RLY?

At this time, we are only supporting selling NFTs in a creator’s Coin although enabling this is in the roadmap.

For NFT Purchasers

Are there any fees associated with purchasing an NFT?

There are no platform fees associated with purchasing an NFT. There may be fees depending on the method of payment, but Rally does not charge a platform or transaction fee.

If an NFT is sold on the secondary market on Rally, a royalty amount may apply to the sale price, but that is taken from the overall price of the sale and not charged as an additional fee on top of the sale price.

Can I return an NFT I purchased?

No. Because these are digital assets, there are no refunds or returns once you have purchased an NFT. All sales are final, so please carefully review your order before purchasing.

Is there a limit to how many of the same NFT creation I can purchase?

Currently, there are no per-user purchase limits (ie. one user can purchase as many NFT editions as they want).

Can I bridge in an NFT from another platform?

No, currently there is no ability to bridge in and sell a NFT that was minted on other platforms into the Rally.io sidechain.

Can I bridge out my purchased NFT to sell on another secondary marketplace?

No, there is currently no ability to bridge out a NFT from the Rally.io sidechain to Ethereum wallets. Note that this feature is in the roadmap to enable.

If I purchased a NFT that was priced in Creator Coin, can I sell it on the marketplace in $RLY or another currency?

No, once the creator mints a NFT and locks in a currency - either Creator Coin or $RLY - that is the only currency that it can be sold as. So on the secondary marketplace, it can be sold in either Creator Coin or $RLY depending on what the original locked currency was. Currently, NFTs only support selling in a creator’s Coin although enabling selling through $RLY is on the roadmap.

What ways can I sell my NFT on the marketplace?

Currently, listing on the marketplace only supports a ‘Buy now’ option. Auction & open edition are only reserved for Drops (first sales from the creator).

When can I sell my NFT on the marketplace?

NFT owners will need to wait 48 hours after receiving the NFT before they are allowed to put their NFT up for sale.

What do I actually own when I purchase the NFT?

A NFT purchase in general means that you have bought the high-resolution digital file and the smart contract on the blockchain which contains the metadata of the creation. It does not give you any copyright ownership over the content of the art or license to use that content in any way.

How do auctions work? Why was there a pending hold put on my account?

When you place a bid, the full amount will be put in a holding escrow account. This is to confirm you have the adequate funds for the sale and to also hold your bid in the auction. If someone outbids you, the amount is taken out of the escrow account and put back in your wallet. If the auction ends and you still have the top bid, the money will be transferred from the escrow account to the creator’s account to complete your purchase of the NFT.

I bought Coins to participate in an auction but didn’t win. What do I do with the Coins now?

Coins can be exchanged for other benefits and access depending on what the creator offers. Head to their Coin page or search for them in the Discover Coin page to check out different campaigns to redeem your Coin holdings.

You can also choose to convert your Coin holdings to $RLY and use $RLY to convert to another Coin that has benefits you are interested in or to bridge out. Please note: for bridging out, there are current restrictions depending on your location (see here) and you will need to complete KYC (Know Your Customer).

Contents
General
What is a NFT?
Should I buy NFTs for investment purposes?
Is there a royalty to the creator on NFTs?
What blockchain will Rally NFTs be minted on?
How does the Rally Ethereum sidechain work? Who verifies ownership of the NFTs or other tokens represented on the blockchain?
What is the environmental impact of creating NFTs?
How are you able to reduce the carbon footprint of these NFTs so significantly? Is there a tradeoff?
What are the drawbacks to a more centralized NFT offering?
What happens to the NFT if Rally.io ceases to exist? Are the files associated with Rally NFTs stored on a centralized server? Or decentralized?
For Creators
I am a creator with Rally - how do I create NFTs?
Are there any fees associated with minting NFTs?
Can I bridge in a NFT from another platform?
Can I split revenue with multiple people?
What does someone own when they purchase my NFT?
Can I burn an NFT when it’s been minted?
Can I do private sales?
Can I gift an NFT?
Is there a max price for an NFT?
Is there a limit to how many of the same NFT creation someone can purchase?
What are the file type and size restrictions for NFTs?
Can I choose to sell my NFT in $RLY?
For NFT Purchasers
Are there any fees associated with purchasing an NFT?
Can I return an NFT I purchased?
Is there a limit to how many of the same NFT creation I can purchase?
Can I bridge in an NFT from another platform?
Can I bridge out my purchased NFT to sell on another secondary marketplace?
If I purchased a NFT that was priced in Creator Coin, can I sell it on the marketplace in $RLY or another currency?
What ways can I sell my NFT on the marketplace?
When can I sell my NFT on the marketplace?
What do I actually own when I purchase the NFT?
How do auctions work? Why was there a pending hold put on my account?
I bought Coins to participate in an auction but didn’t win. What do I do with the Coins now?