Open Edition NFTs are on the rise again, but no, they are not a new concept. Since the start of 2023, many NFT creators have generated massive sales using open editions. While it is a relatively known concept, it has been used in the past by notable artists such as Beeple. Despite this, many NFT ecosystem users have yet to learn about Open Edition NFTs.
When it comes to NFTs, there are ways to make an NFT available to the general public. The most common type is the limited edition, which limits the number of NFTs users can mint. Open edition, on the other hand, has no set limit on the number of NFTs users can mint at a go. For some members of the NFT community, the open editions pose a threat to the NFT ecosystem. But for others, it could be a way to revolutionize how we use NFTs to offer utilities, value, and their application in different aspects.
Lately, NFT creators are tilting towards it, and like several others, you may be wondering what the catch is. Well, you have to read this article to find out. This article will take you through the basics of open edition NFTs and how they differ from limited edition NFTs. If you are having difficulty understanding what they are, you should read this article to the end.
What are Open Edition (OE) NFTs?
OE NFTs are NFT drops with no set supply limit. Users can mint as many tokens as they can immediately after an NFT mint goes live. Usually, the creator can set some rules to guide the drop. For example, they can set the drop to happen within a specified period – a day, two days, or even a week. They can also put a cap on the number of NFTs each wallet can mine and the total supply cap.
In the same way, the drop can be without any of these rules. In that instance, the drop doesn’t end and has no set supply mint or a cap on the number of tokens a wallet can mint. Contrary to what many think, open edition NFT drops predate the 2021 crypto boom. Famous digital artist Beeple in 2020 dropped three open editions on Nifty Gateway. Even though Beeple and other digital artists successfully used open edition NFT drops, it was still not commonly used in the crypto community.
With the market still in recovery, creators have searched for ways to offer new experiences to their fans, and OE seems to be leading the way. Since the start of 2023, OE NFTs have increased in popularity and dropped. Recently, entertainment mogul and NFT collector Snoop Dogg jumped on the OE trend. Snoop Dogg released a 2 min jam titled “XYZ” which he released in OE style on February 3, 2023.
Open editions vs. Limited editions
NFTs thrive on their rarity and exclusivity. As commonly said in the NFT ecosystem, “the rarer, the better.” That phrase explains why NFT collections with limited supply get so much hype and frenzy. For instance, the Otherside launch traffic broke Ethereum as users tried to mint a piece for themselves. That is one of many instances.
Most NFT creators say that open edition drops ruin the value of an NFT. Where there is an ample supply of an NFT in the market, it makes it difficult for the NFT to fetch a hefty price tag. Similarly, they believe open edition drops saturate the market, which could affect limited edition NFTs.
Limited edition drops, unlike OEs, have a total supply that is predetermined. Once the supply is maxed out, the primary sale ends. Users looking to get their hands on one will have to turn to secondary markets. By that time, the NFT could be going for double its price. That rarity makes it easier for users to flip for profit. It also helps the NFT maintain a substantial value in the long term. For example. Collections like the BAYC and CryptoPunks have thrived on rarity and exclusivity to remain a top NFT collection. NFTs within the collections go as high as millions of dollars.
The difference between open edition and limited edition NFTs is better understood using supply and value. Let’s take a look!
Open edition NFTs do not have a specified total supply. Although in some cases, the creator could put a cap on the maximum number of tokens to be minted. This lack of total supply means there is no predetermined number of NFTs for every mint. For limited edition drops, there is a set supply cap for the drop. In the case of NFT collections, the total number of NFTs within the collection is announced before the drop.
Due to their large and sometimes infinite volume, open edition NFTs carry lesser price tags compared to limited editions. Since anyone could quickly get their hands on one, most users who have an interest just mint directly instead of using a secondary marketplace. But for limited editions, once the mint is over, users would have to buy the NFTs from a secondary marketplace like OpenSea. The higher the demand for resales, the higher the value of the NFTs climb.
What are the benefits of open edition NFT drops?
Open edition drops help creators reach a wider audience, which is good for the NFT ecosystem. It also breaks the barrier that discourages low-income collectors from investing in NFTs. Due to their affordability, anyone can easily mint an NFT and do so cheaply. Easy accessibility also helps the artist build credibility and following.
There is a longer window for the NFTs to be minted. Since there is an almost infinite supply, users wouldn’t have to race against each other to mint an NFT. It also saves them money, which users could lose due to the traffic generated while trying to mint. Several users lost thousands of dollars in gas fees during the Otherside launch. Worse, some of these users were eventually unable to mint the NFTs. With open edition drops, NFT artists can prevent that.
Open edition drops can be used for many NFT use cases that wouldn’t be possible for limited edition drops. NFT ticketing is a part of the NFT ecosystem that could benefit immensely from unlimited drops. Users wouldn’t need to hurry against time or other users to get their hands on tickets. Likewise, new users wouldn’t have to pay extravagant fees on secondary marketplaces just to get their hands on tickets.
Open editions can also be used for charitable causes, with the fund needed set as the limit. Once the donation reaches the capped fund, minting stops.
Digital Artist’s Reaction to Open Edition NFTs
Are Open Edition NFTs good? Depends on who you ask. But the majority of NFT artists look at it favorably. In an interview with CoinDesk, Jack Butcher, creator of Checks VV NFT project – an open edition – described OEs as a way to build a more effective distribution channel. According to the artist, it is one of the easiest ways for creators to get their works out there.
To NFT artist FVCKRENDER, OEs help prevents unnecessary restrictions and limits on an artist’s work. While artist Grant Riven Yun tweeted that lower-priced collections are beneficial to both the artist and collectors.
What is the future of Open Edition NFTs?
Open edition NFTs have had a good start in 2023. NFT creators are turning to it en masse, the same way users are exploring opportunities within. For many creators, it is an opportunity to reach a wider audience. But for users, it is an opportunity to own an NFT at a low cost and with ease.
Prominent Norwegian-born Vietnamese artist DesLucréce is one of the creators to have hit big numbers with open edition drops this year. On January 18, the artist launched an open edition titled “Proceed w/ Caution.” NFTs within the open edition were minted for 0.06ETH. Over 8,408 items worth 504 ETH ($825K) sold in 15 minutes. Not only that, but the artist’s famous collection DesMonsters also saw an increase in volume after the open edition launch. The collection recorded a 498% gain in volume and a 78% gain in its floor price.
Open edition drops will undoubtedly increase significantly in 2023, considering the successes it already recorded. While it would favor majorly artists who already have massive followings, small-scale artists can also try that luck with it. Nonetheless, the divide will still exist between creators who see the good in open edition NFTs and those who think it does more than good.
Platforms that support open edition NFTs
Few platforms support open edition NFTs. NFT artists looking to take advantage of the open edition frenzy can use any of these platforms. Some of these platforms allow artists to create and mint NFTs.
These are some of the most popular platforms for open edition NFTs: