Our client owns an apparel brand where he wants NFT Token Gate access to users own his NFT collections. With NFT Token Gating, he provided exclusive access to his site and clothing products for users who owned and invested in his NFTs. So when users visited his site and they owned an NFT, the client wanted to give them specific discounts and print a custom design for them on the T Shirts. To avail this discount, users need to transfer the NFT from his collection back to him. Upon confirming that the NFT was authentic indeed, our client would then burn the NFT so that it is no longer reusable. Burning NFTs is a method where NFTs are transferred to a NULL address on the blockchain network, in this scenario the Avalanche blockchain, and is no longer accessible. Please note that this process is permanent.
This way the customers get a discount and a custom designed T-Shirt, and the client could redeem his NFTs and burn them from being used again.
When we say “Burn an NFT”, there’s nothing violent involved here. Burning an NFT means that the NFT should not be available for anyone, and needs to be destroyed. While technically, you cannot destroy an NFT due to its uniqueness, what burning an NFT does is transfer the NFT to a NULL address from where no one can access it again. This process is irreversible and permanent, so all users are advised to take caution while following this process.
All trade depends on supply and demand. NFTs themselves are seen as an investment opportunity. So if the markets are flooded with several NFTs from a collection, the value goes down and the “rarity” factor takes a hit leading to a decline in the demand as well. So it's really bad when the supply uncontrollably increases, but the demand has gone down.
So as a “Value Management” strategy, the excess NFTs minted need to be burned to reduce the ease of purchasing and drives up the value factor of the NFTs again. This is the reason why artists and NFT collection owners would ever want to burn their NFTs.
With the WordPress NFT Marketplace integration with your site, convert your WooCommerce store into an NFT Marketplace where you can import NFTs from the blockchain of your choice and sell the product. With an NFT Marketplace of your own, you can mint and sell NFTs, reward users with discounts for their loyalty, and have a community of your own for users to gather together. We also support Lazy Minting and Gasless minting in order to promote upcoming artists and their artwork. Along with this, NFT Marketplace owners can create exclusive access for users to buy select NFT collections, get updates on upcoming drop sales, and the latest WordPress NFT Marketplace updates before the rest with an exclusive member access policy.
Here’s the complete process flow of the NFT Marketplace and discount provisioning, for our client using the NFT Marketplace solution:
Step 1: Creation and Minting
Every creator has a physical product for sales and the users can get their NFTs printed on it. To first create those NFTs, the digital assets need to be minted on the Avalanche blockchain for authenticity and uniqueness.
Step 2: Listing and Auctions
The NFT owners visit the client’s marketplace and list their NFTs for sale.
Step 3: Redeem NFTs for the product discount
Using the NFTs, the user can redeem his NFTs to get a discount on the physical product while purchasing.
Now the users who buy the NFTs they like, can get the image printed on the physical
products they purchase and avail an exclusive discount. After that the NFT is burned and sent to a NULL address on the Avalanche blockchain.