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.
NFTs should not be considered an investment opportunity. Like any collectible, 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.
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.
We are currently in a closed, limited beta version of the NFT product. At this time, only certain creators have access to launch NFTs. We anticipate that additional features and functionality will be made available to all creators by mid-August.
No. Any creator who has a Creator Coin with Rally can mint an unlimited number of NFTs for zero fees.
Rally NFTs will be minted on an Ethereum sidechain.
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 Rally community of more than 40,000 $RLY token holders guides the project at the network level. We believe this provides for the perfect 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.
There are no platform fees associated with purchasing a NFT. There may be fees depending on the method of payment, but Rally does not charge a platform or transaction fee.
If a 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.
No. Because these are digital assets, there are no refunds or returns once you have purchased a NFT. All sales are final, so please carefully review your order before purchasing.
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.
The major contributor to the carbon footprint of NFTs on Ethereum mainnet is the electricity required to support the hash rate required for Proof of Work. This is not required on a Proof of Authority side chain. The tradeoff is centralization.
In any centralized system there are trust assumptions associated with the party offering the service. In our case, users are trusting the Rally Network 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).
No, currently there is no ability to bridge in and sell a NFT that was minted on other platforms into the Rally.io sidechain.
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.
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.
The secondary marketplace for Rally NFTs will be made available on Rally.io later in June.