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  • What are xNFTs?
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  1. GETTING STARTED

xNFT: Next Generation of NFTs

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Last updated 1 month ago

What are xNFTs?

xNFTs are NFTs with Xeal's AI invisible watermark that you can create and trade on Xeal using xTokens.

While xNFTs are designed to work optimally with xTokens, they are not limited to this pairing. Creators can configure xNFTs to be created and traded in any token, and xTokens can be set up with various token options.

Collection creators have the ability to mint new NFT tokens within their collection. For example, a famous singer could create an album as an NFT collection, with each song represented by an individual NFT. The associated xToken would serve as both the currency and a share in the album, facilitating song trades. As the artist adds more songs to the album, more xTokens are burnt and utilized.

Why xNFTs?

The conflict in 2022 between OpenSea and Blur, two major NFT marketplaces, centered on market dominance and fee structures. Blur challenged OpenSea's position by introducing zero trading fees and optional royalties. This sparked an incentive war, with both platforms offering rewards to attract users. The competition led to a race to lower royalties, ultimately making creator royalties optional on both platforms. This shift significantly reduced creators' ongoing revenue from secondary sales, undermining the financial incentives for creating high-quality NFT projects.

Xeal recognizes copyright infringement as a significant challenge in both Web3 and traditional environments. The platform aims to protect creator incentives through xNFTs by implementing several key features:

  1. Verifiable watermarked assets that can be traced across platforms and even in offline contexts.

  2. Optionally enforceable trade loyalties, restricting trades to whitelisted contracts including the Xeal marketplace.

  3. Fractionalized ownership of NFT collections through xTokens, facilitating xNFT trading.

How are xNFT prices determined?

The pricing for each NFT token is determined by free market dynamics. While the collection creator sets a minimum mint price, tokens can be traded through offer and bid mechanisms, allowing xNFTs to find their true market value. This system aims to create a fair and flexible environment for creators and collectors alike.