Lazy Minting: An Affordable Way to Mint NFT
We have seen an extraordinary rise in gas fees ever since the rise of non-fungible tokens. In addition to this boom, blockchain network congestion has led to significant fluctuations in gas fees. The hike in the gas fees has a huge impact on creators, especially the newbies. Budding artists usually are short on funds and cannot pay the fees if the gas costs are high.
As a result, many users are experimenting with a technique known as ‘lazy minting’ to compensate for the higher gas fees.
By utilizing lazy minting features across multiple marketplaces, creators can avoid paying a gas price for minting their non-fungible tokens. Lazy minting made its debut near the end of 2020. Top-tier marketplaces like UPYO, OpenSea, and Rarible quickly embraced it.
What exactly is Lazy Minting?
It is already known that minting non-fungible tokens on a network like Ethereum can be costly when gas costs are high. Thus, creators are obliged to pay excessive fees to mint their digital artwork into non-fungible tokens. In many cases, owners lose money even after an NFT asset sells due to the incredibly high costs associated with minting the NFT. In this scenario, lazy minting offers an alternative option for the users.
In this process, a non-fungible token is accessible outside the blockchain (off-chain) and is minted only when it gets sold. This means the creator or seller does not pay gas fees to mint their non-fungible token in advance. Instead, the gas costs are collected once the non-fungible token has been acquired and transferred on the blockchain (on-chain).
Accordingly, the gas fee is paid after a non-fungible token work is acquired and transferred to a new owner. Thus, the obligation to mint non-fungible tokens falls on purchasers rather than creators.
The perks of lazy minting are as follows:
- Decreases the influence of increased gas fees- Creators can integrate the gas costs into their pricing structures to mint non-fungible tokens after the sale. Doing so negates the effects of high gas costs on creators/sellers.
- Lowering the entry barriers- the hindrance levied by increased gas costs to mint tokens gets reduced for creators, thus facilitating a smooth entry to NFT space.
- Improved liquidity- Promotes and improves liquidity because non-fungible tokens can only be transferred after they have been sold. This prevents creators from hoarding unsold minted tokens and purchasers from having to wait indefinitely for the non-fungible token to be sent to their collection.
What is the Work Process of Lazy Minting?
Lazy minting is a fairly simple procedure. Here is how you can use the lazy minting feature on UPYO:
- Go to the “Create” option on the right side of the screen and click on it.
- Choose “Create Single” for a single asset or “Create Multiple” for multiple copies.
- Upload your file and fill in all the fields under “Item Details.”
- Turn on the ‘Free Minting” button.
- Select the type of sale- “Fixed” or “Auction.”
- Enter the price of the asset.
- Choose “Create Collection” to build a new collection. Or click on “UPYO Collection” to add to an existing collection.
- Click on the “Create” button.
- Approve and confirm the MetaMask transaction.
- The NFT will be put for sale on the UPYO marketplace.
How Much Will be the Lazy Minting Fee?
Lazy minting is free; however, platforms do charge a minting fee in the form of a commission from the maker, buyer, or both. The NFT minting charge in each NFT marketplace will be different and have a separate lazy minting mechanism. Several criteria, including data quantity, project quality, transaction speed, and others, influence the price of gas fees in the non-fungible token minting process.
Below are the fees charged by various marketplaces for NFT transactions:
- UPYO charges a 2.5 % commission rate (to the seller)
- Rarible charges a 2.5% commission rate (to both buyer and seller).
- SuperRare charges a 3% commission rate for every purchase.
- Nifty Gateway charges a 5%+ $0.30 commission for every secondary sale.
- Foundation charges a 15% commission rate for every sale (paid by the seller).
Which is better: Lazy or Paid Minting?
Paid minting, similar to lazy minting, is the process of converting digital files into non-fungible tokens. In this process, a unique token is published on a blockchain network that converts the file into an NFT asset. Once the asset is successfully minted on the blockchain, the asset will become a part of the public ledger and becomes immutable. Therefore, anyone can verify the ownership and authenticity of the NFT through its unique token.
Minting NFTs requires massive amounts of energy. Miners incur large electricity bills due to solving complicated problems to add new blocks to the blockchain ledger. Consequently, creators are charged a gas fee.
The gas fee incentivizes miners to enter crypto transactions onto the blockchain network. In some circumstances, the gas fee will be determined by how quickly you want the NFT minting process to be completed. Thus, one can say that a fast mining process results in increased gas fees.
Since lazy minting redirects the minting cost to purchasers, it’s a better alternative for non-fungible token creators. It means they can sell their NFTs on a marketplace for free. The fee for gas will be estimated in GWEI, which is nothing but the gas unit. One GWEI is equivalent to 0.000000001 ETH. The minimum amount of gas required to conduct network transactions is 21 thousand.
The recent increase in the number of NFT transactions on the blockchain impacts the gas fees that non-fungible token creators must pay. The excellent thing is that lazy minting is now freely available for non-fungible tokens. Lazy minting is a thriving trend in the NFT sector, with numerous benefits for creators and sellers.
It removes the advance fee payment of minting non-fungible tokens, making the process more cost-effective and accessible to new digital creators. Furthermore, the advantages of lazy minting aren’t limited to artists and developers. It removes redundant power-hungry transactions from the blockchain, as only sold non-fungible tokens can be minted.
Whether you wish to learn about NFT, Blockchain, Web3.0, Metaverse, or other emerging technologies, we have the vital resources that will enlighten and help you make an informed decision.
Subscribe to UPYO Blog Newsletter to deliver emerging technology updates straight to your inbox.