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1. What is Refundable NFT?
1.1. What is Refundable NFT?
Refundable NFT is the ERC-5507 NFT standard on the Ethereum network. In addition, this is also a new concept that refers to NFT projects that have a refund mechanism for users. These NFTs are created with a mechanism that allows users to return the NFT and receive back the money used to previously purchase this NFT.
This utility helps increase safety for "buyers" and is also compatible with "return" policies in many countries. For example, in Europe, every business is required to have a 14-day return policy.
1.2. Background
The way traditional NFT projects are issued poses many risks for investors due to the issuer being unable to guarantee the project's capitalization upon launch or if the project fails, investors have no choice but to sadly let it go.
ERC5507 or Refundable NFTs were created to protect investors' rights while giving them confidence when considering whether to invest in any NFT project. In addition, this mechanism forces the project to fulfill its "promise" to users, ensuring completion according to the roadmap given before calling for capital if it does not want to be "mass refunded".
2. Three outstanding Refundable NFT projects
2.1. Plutocats
Plutocats NFT is an NFT project that is similar to the previous extremely successful NFT project on the ETH network, Nouns NFT. Built on Blast, this project has many favorable conditions to apply a "refund" mechanism for NFT buyers.
According to information from Plutocats, users who buy or hold NFTs from the project can "return" NFTs at any time based on the average price currently in the "vault".
This mechanism allows buyers to be more confident when owning NFTs, especially with a project on a very new ecosystem like Blast and an emerging project like Plutocats.
The team has written a fairly in-depth analysis article about Plutocats, everyone can read it at this link.
2.2. Blastr
In addition to Plutocats, Blastr is a platform that allows developers to issue “refundable” Refundable-style NFTs built on Blast. Although newly launched, Blastr has proven its influence and great potential in the Blast ecosystem.
In short, Blastr is a launchpad platform and protocol that allows NFT projects to issue Refundable NFTs, also known as Unruggable Collections. Each NFT minted on Blaster is secured through a token lock on the platform, allowing the project to always have funds to repay buyers when necessary.
2.3. Pigs get blasted
Pigs get blasted is an NFT project with the theme of pigs as bombs. Users can choose to mint one of the project's 4 NFT types. If you do not want to hold it, users can "explode" the NFTs (also known as the refund process) and receive back the money they used to mint this NFT.
The fee for exploding NFTs is 5%.
3. The right environment for developing Refundable NFT collections
With its native yield mechanism, Blast is proving itself to be a suitable blockchain for Refundable NFT or NFT development projects in general. In fact, when a buyer sends ETH to mint any NFT, this portion of ETH will be put into a fund and automatically generate yield for the owner.
For example, if a project calls for 1000 ETH, instead of keeping it in the Metamask wallet or risking sending it to DeFi applications to receive a certain yield, if they build on Blast, this 1000 ETH will automatically Generates yield and brings passive income to developers. 1000 ETH with a yield of about 4%/year, the project can bring in 40ETH per year (or 120 thousand USD at the current price).
This is an extremely attractive point as only projects built on the Blast ecosystem can simply integrate this mechanism.
In addition, Blast is implementing a point and GOLD distribution program for users when participating in DApp activities at Blast. Building on a blockchain that supports the mechanism, while continuously launching programs to help DApps attract users is not a "bad" choice.
4. Conclusion
Refundable NFT is not a new NFT standard but is gradually becoming a trend that projects pursue to protect investors, while also demonstrating the developer's commitment to the project. Hopefully the above article has provided some information to help people better understand Refundable NFT (ERC5507 standard) and the potential that this standard brings.
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