🤖Issuance Mechanism

The issuance mechanism of NFTs on the Flip platform significantly differs from traditional NFT issuance methods, representing one of its core innovations.

Traditional NFT issuance can generally be categorized into three types:

1. Fixed-Price Minting: Everyone mints at a uniform price.

2. Tiered Pricing: The minting price increases or decreases in tiers based on minting progress or participation timing, though price differences between tiers are typically not substantial.

3. Whitelist Sales: Only addresses on a whitelist can mint NFTs.

These methods are not mutually exclusive and are sometimes combined. While there’s no inherent superiority or inferiority among them, they all leave room for manipulation:

• Whitelist Opacity: The distribution of whitelist spots can lack transparency.

• Reserved NFTs: Issuers often reserve NFTs at no cost, which they can sell on the secondary market at any time.

• Price Disparity: The primary minting price and secondary market trading price are disconnected, allowing issuers to mint at low costs and sell at high prices on the secondary market, which is unfair to secondary market traders.

These issues reflect an unequal status between NFT issuers and secondary market traders, stemming from unfair issuance practices. This leads to a negative phenomenon: after issuing NFTs, issuers, having secured significant revenue, often lack motivation to maintain the project, resulting in frequent "rug pulls."

Flip’s issuance mechanism is designed to address these problems:

• NFTs are issued starting at a low price, and issuers do not reserve any NFTs—they must purchase them from the market like secondary market traders.

• Issuers’ revenue comes from royalties (or transaction fees) per trade.

• This allows all traders the opportunity to mint at a lower price, with a continuous price curve determined entirely by market supply, fully handing pricing power to the market.