Before minting a non-fungible token, the artist must consider the NFT Minting Cost. An NFT is a one-of-a-kind token that is irreplaceable. Most of these NFTs exist in the Ethereum blockchain, associated with high NFT minting cost.
Multiple things affect the cost of producing an NFT. For example, the blockchain and NFT marketplace critical in the minting process affect the cost of minting NFT. In some networks like Ethereum, creators may have to spend more, unlike in scalable blockchains. On the other hand, some NFT Marketplaces are compatible with multiple networks, allowing creators to mint their NFTs on any chain they want. For instance, OpenSea minting cost is quite affordable because of the features mentioned above.
Here, we explore what NFT minting cost means and the types of expenses you incur when producing a non-fungible token.
What is NFT minting?
NFT minting is turning a digital file into an asset on the blockchain. The digital file may be in the form of art, game, music, etc. Before this happens, the creator must consider the average cost to mint NFT.
Any digital item users mint and store on the blockchain, making it impossible to modify or delete once it arrives on the platform.
Minting an NFT may be an easy process depending on the NFT platform or marketplace utilized in the process. Some marketplaces like OpenSea offer creators access to different tools useful in turning a digital file into NFTs. To use this marketplace, users must meet the OpenSea Minting fee.
How to use an NFT marketplace
Here are the steps to follow:
- Link a wallet: Typically, logging into some NFT Marketplaces is quite seamless and can be achieved by merely linking one’s wallet like Metamask to the platform.
- Mint token fee: For user experience improvement, some NFT platforms allow people to mint NFTs and pay the mint token price by merely uploading the file.
- Mint NFT: This is a critical step in developing your NFT. Start by uploading the file, adding a title and description, and then customize the royalties before it is made available for sale.
It is essential to note that the user must pay the cost of mint NFT during the process. It does not matter if the NFT is sold in the future or not; the cost to mint NFT must be paid.
What is an NFT minting cost?
The NFT minting cost is the gas fees that creators pay when they want to convert their digital assets to NFTs. Different networks have a varying cost of minting NFT. For instance, it is more costly to convert a digital file to an NFT on Ethereum than Solana, Avalanche, or even Cardano. The average cost to mint NFT on Ethereum is high.
This is because the Ethereum network suffers from scalability issues, which degenerates into high gas fees and congestion. In the future, this may change once the move from Ethereum 1.0 (a Proof of Work network) to Ethereum 2.0 (a Proof of Stake chain).
Though the NFT minting cost on Ethereum may be high, the value varies depending on the level of congestion that the network faces.
Who determines the NFT minting cost?
Users have to pay gas fees before minting an NFT. Except in the case of the free minting process, which occurs via lazy minting. Different networks have varying gas fees, and they change with time. This means it is crucial to check the gas fees before beginning the process.
Some NFT Marketplaces allow users to list their digital assets for free but take commission once the NFT goes. The NFT minting cost on OpenSea stands at 2.5% of the final sale. If a creator opts for Rarible, they have to pay an NFT minting cost of 2.5%. SuperRare charges an NFT minting cost of 3% on the price paid by the purchaser.
In reality, the user decides the NFT minting cost because most marketplaces tend to charge a final fee proportional to the amount they sold the digital token for to collectors.
Regular costs linked to NFT minting.
The total cost of minting an NFT, as mentioned earlier, varies as per the blockchain and NFT Marketplace that the creator will use. Some NFT platforms do not charge some of the fees mentioned below. For instance, Opensea minting cost does not include the listing fees. They charge only an OpenSea minting fee linked to the final purchase value and gas fees in some cases. NFT Minting costs are:
If the user is not opting for lazy listing, they have to incur gas fees. Usually, gas fees are paid to validators or miners to verify the transaction. Gas fees may differ based on the time of minting the NFT, the transaction speed, the size of the data, and the quality of the project.
Some Marketplaces charge users for listing their NFTs for sale. Before any Non-Fungible Token is allowed on their platform, the person listing must pay a fee whether it is sold or not in the future.
Final sales commission
The likes of OpenSea charge this NFT minting cost linked to the final purchase value. In the case of OpenSea, it is pegged at 2.5% of the total amount made by the buyer.
For creating an account in some NFT platforms, the user has to pay an account fee. It depends on the marketplace that is utilized.
What is Lazy Minting?
Typically, minting an NFT comes with a mint token price that users pay before completing the process. High gas fees can be discouraging to creators, so lazy minting exists. In some NFT marketplaces, creators can upload and list their digital assets on the platform without minting them on the blockchain. This process means that the asset has not been turned into an NFT or incurred the NFT minting cost.
When a collector buys the NFT, they’ve to meet the gas fee and other transaction costs.
This feature is accessible on OpenSea, and it removes the need for the creator to pay an OpenSea minting fee.
Minting an NFT is a seamless process as long as you know what you are doing. Marketplaces like OpenSea make it easy for people to connect their wallets, upload their digital files, mint them to NFTs and sell them.
There is also the option of Minting without paying a lot in gas fees. Before choosing an NFT Marketplace, the user must consider the transaction costs attached to minting and selling their NFTs.
As an NFT project seeking to release its innovations in the space, it is crucial to have an NFT advisory and NFT Marketing team like Tokenminds.