What's a Drop?
If you’ve ever tried to buy rare streetwear (or any other kind of limited edition collectible, for that matter), you’re already well acquainted with “drops.”
Put simply, when a limited edition item is made available for public release or released for a limited time, that’s called a drop. So when Supreme drops a hyped new design, stores receive a limited quantity of product, and collectors camp out with the hopes of being the first to buy one.
NFT drops are pretty much the same thing -- only digital.
Drops supported on DoinGud
At launch, DoinGud’s first drop mechanics will feature: 1/ English Auctions & 2/ Ranked Open Editions where users will be rewarded for purchasing the most from a specific collection.
On the roadmap after the launch, we’ll also support Dutch Auctions, Ranked Auctions, & Packs that contain randomized content/NFTs, similar to trading cards.
There are other NFT drop formats, too, and potentially even more to come as creators innovate with drops. Of course, Stealth Drops, wherein an NFT collection drops out of nowhere without any prior warning or fanfare, are always possible as well.
When you’re collecting NFTs, make sure to always keep your eyes and ears open. Exciting surprises await around every corner!
Different Kinds of Drops
NFT drops are typically announced in advance so that as many collectors as possible have a fair shot at nabbing what they want.
But not all NFT drops are created equal.
Due to the digital nature of NFTs, drops can be conducted in a multitude of creative ways which are intended to maximize fair access.
The 5 Most Common Drop Formats
Becoming familiar with the ins and outs of potential drop structures will give you a leg up when you’re trying to mint the next hot NFT.
Here’s a quick guide to the five most common types of drops that you’re likely to see while collecting NFTs.
Standard Drops (Instant Buy)
Standard drops allow collectors to mint NFTs for a set price on a first-come, first-served basis until the entire supply is gone. For example, if there are 10,000 NFTs in a specific collection, collectors can mint during the drop until all 10,000 have been purchased.
Many collections will put restrictions on the number of NFTs that can be minted in a single transaction or to a single wallet during their drops to help make sure that more collectors are able to participate.
With open edition drops, there’s no set maximum number of NFTs available. Instead, collectors can mint as many of the NFT as they want during a small window of time (typically around ten to fifteen minutes). The number of NFTs minted during that window becomes the final edition size.
Ranked Open Edition
This sale type is exactly like Open Edition, however there's a twist! Collectors may bid the minimum during the drop duration and receive an NFT, however those who want to score lower edition numbers have the opportunity to bid higher amounts and get "ranked" according to their bid. At the conclusion of the drop, the edition numbers will be distributed based on ranking, starting with Edition #1 for the highest bidder and the lowest bidder receiving the last edition in the series.
English auctions are most commonly seen with super-limited 1/1 of NFTs. Just like an Ebay auction, collectors bid on an NFT during a set time-frame. When the auction time period ends, the NFT is sold to the highest bidder.
NFT drops can feature multiple purchase formats spread out across different pieces in a collection, so it’s common to see standard options, open editions, and auctions all in the same drop.
When an NFT collection drops using a dutch auction format, the purchase price starts out high (ie: 3 ETH), and then continually decreases until everything sells out.
Theoretically, dutch auction drops are intended to allow collectors to decide on a fair buy-in point, so while 3 ETH may be too high of a valuation, collectors may be more willing to buy at 1.5 ETH. In practice, though, many dutch auctions for hyped up NFTs sell out immediately at the starting price.
How do I apply for a Drop on DoinGud?
For now, all DoinGud Gallery Drops & Exhibitions are invite only or open for participation via community initiatives and campaigns. In the future, users will be able to submit their creations to our Curation Pool to be eligible for multiple curators and galleries to host their creations for exhibitions and drops.
The beautiful thing about what we’re building is that we will provide the tools for anyone to host their own drops and sales on their own. You can already structure your own drops or sales by uploading your creations and making them available for purchase at a specific time by setting them for sale when you’re ready. All you need to do is communicate with your community when the creations will be available for purchase :) At the end of the day, a drop is nothing more than a time restricted sale, so anyone can host their own drops at any time.
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