What is an NFT?

Simplified explanation:

Imagine if I created 10.000 pokemon cards which are all unique (so none of them are the same). Every unique card contains my signature so everybody knows it's mine. The value of 1 of them is based on how many people want that specific card. Now I'll sell my pokemon cards. Every buyer becomes a member of my Pokemon club. A pokemon card holder can go to a pokemon festival for free when showing the unique card with your signature. All the copy holders are not allowed to get in. Only the ones that possess a card from the original collection.

Take this concept and make it digital. Now you have a digital card that's visible on the screen of your digital device ( phone, iPad, or computer). If you place this card on a blockchain it makes it possible to put your signature (in code of course) so that everybody knows that you are the owner/maker. You can still take a picture of it or copy the image of your NFT but that copy doesn't hold any value. The original holds value because it represents proof of ownership, membership in a community, utilities, and other perks depending on the project.

NFTs are explained with all the buzzwords:

NFT stands for a non-fungible token, or in other words, behind these visual designs (e.g. art) are unique and non-interchangeable units of data that are stored on a digital ledger. These are powered by blockchain technology to establish proof of ownership. Like your typical pieces of art, NFTs are collectible digital assets that actually hold value. Value is often determined by the demand for the art of the NFT but also by the strength of the community and utilities/perks that the NFT holder gets. The process of placing an NFT on a blockchain is called minting. Whenever someone buys an NFT that is not yet on a blockchain then this NFT will be minted for the first time. As soon as the NFT is minted it will become visible on the different NFT marketplaces that are connected to the corresponding blockchain.

In our case, we make use of the Solana blockchain. Therefore you will need to have Sol tokens in your wallet to buy an NFT. For the wallet selection, we can connect to MetaMask and Coinbase Wallet during minting. If you want to buy on the secondary market you need to see what wallets are accepted by the NFT marketplace of your choice. For the NFT marketplace, we recommend Metaplex, Magic Eden, or Solsea.

How to create a wallet?

Since we make use of the Solana blockchain we recommend you to install the Phantom wallet. Follow the instructions here:

How to create a Phantom wallet

What about the blockchain and its impact on the environment?

There are several blockchains available to mint NFTs. Our projects make use of the Solana blockchain. We chose Solana because of its high performance, sustainability, and its popularity within the NFT market.

More about Solana: "Solana, the world’s most performant blockchain, is already extremely energy efficient. The most recent analysis from the Solana Foundation estimates that a single Solana transaction uses only 1,939 Joules, which is less than the amount of energy required to complete two Google Searches. That is the equivalent of leaving an LED lightbulb on (36,000 J per hour) for a little more than 3 minutes or of running your refrigerator (810,000 J per hour) for about 11 seconds.

It is also notably much less energy than transactions on other common blockchains, such as an ETH2 transaction (126,000 J), an Ethereum transaction (777,600,000 J), or a bitcoin transaction (7,412,400,000 J).

The announcement comes alongside its partnership with Watershed, a company dedicated to helping companies cut carbon emissions. The Solana Foundation will be funding the permanent destruction of CFC and HFC refrigerants — greenhouse gasses 10,000 times as potent as CO2. The project creates jobs and has an immediate impact on averting greenhouse gas emissions.

The Solana Foundation will continue to act as a watchdog on the ecosystem’s environmental impact. It has pledged to keep the Solana network infrastructure carbon neutral through 2022 and beyond, and will continue to show transparency with regular reports on energy usage".

Why should I buy a NFT to support a non-profit organisation. Why can't I just donate by directly transferring money?

Of course, you are free to donate money in a conventional way. That's great! Just to make it clear, we are not against that at all! However, we strongly believe we can have a larger positive impact through NFTs. It's just like the conventional way where you donate a certain amount but in this case, you get an NFT in return.

As an NFT holder, you automatically become part of the community that is supporting the project's cause worldwide. With this membership, you are able to engage with the organisation and like-minded supporters and make use of all the different utilities that come along with the project. Depending on the project the utilities can be perks like free courses about the topic, lectures by thought leaders on the subject, and free tickets to events but also you'll have the opportunity to vote on the next steps along with the roadmap of our organisation. This will in turn really help the non-profit organisations that we collaborate with to connect in a new digital space with supporters from around the world.

How do I know I can trust your project and the organisation behind it.

Currently, most of the NFT projects are simply gambling games. You don't know who or what to trust. NFT project owners are often anonymous, projects have unclear roadmaps or no roadmaps at all, you have the possibility that it's all a big scam (also known as a rug-pull) but there is also a chance that it can turn out to be a fruitful investment. It's hard to say from the beginning and also strongly depends on how much the project is hyped by the world. We are different from the usual NFT project in many ways. First of all, we strive to be 100% transparent about (almost) everything.

You can see on our website who's behind the team and check their backgrounds. Secondly, we choose the non-profit organisation for our projects very carefully. We only partner with renowned non-profit organisations that have a proven track record and really are making a difference. Thirdly, we are not money-driven but social impact-driven. With our 98 models, we give 98% of all revenue streams (also royalties) to the organisation that we are helping to solve a certain world issue. 2% is used to finance our operations and to kickstart the next project. Finally, if you are part of the community you can help us decide with whom we should collaborate.

What happens if we don't collect enough funding from the NFT sales?

First of all, this is very unfortunate if it happens. We'll first align with the non-profit organisation (NPO) connected to the particular NFT project on what the possibilities are with the funding that we DID collect. Chances are that we won't be able to fulfil the initial goals that we set for this particular project. However, since it's all for a good cause together with the NPO we'll try to find the best way possible to use the collected funding. In all cases, we'll be as transparent as possible to the community about the situation and the choices that we have to make.

Safe Guard/Backup

In order to really make an impact and fulfil the goal(s) that we set with an NPO we'll build up a 'funding reserve' that can be used in case we need some extra's to fill the funding gap. Of course, the reserve will be limited at the start but we'll slowly build it up with each NFT project that we run.

How do we cope with people that are only participating for the quick "flip"?

It's sad to see how people with "paper hands" are currently killing NFT projects by manipulating the floor price and re-selling for a quick flip. We try to keep these money-driven people away by eliminating the incentive of "selling for profit". We do this by adding extremely high Royalty fees. Meaning that if you sell our NFTs, the greatest part of your revenue will go to the NPO that we are working with. So reselling means in our case: re-donating. The incentive of our NFT holders must always be to support a social cause (NPO). We'll also communicate very clearly to the people that want to sell it for lower than the original mint price: "If you sell it for lower than the mint price that means that you don't care about the project that we are helping".

How do we kickstart a project?

Small non-profit organisations (NPOs)

We have a broad network within the NPO scene. Therefore we have different access points to the NPO's making it easier for us to start a conversation and look for opportunities to collaborate. We aim to help the small NPOs that don't have much exposure and funding to really make a difference. The steps that we take are:

  1. We try to understand via a call what the organisation is about, what they are currently doing, and what they hope to do or have in the near future. If we see a match with what we stand for as a company and if we are convinced that we really can help then we schedule a workshop.

  2. In this workshop we'll deep-dive into the NPO to come up with NFT project goals, strategy, and roadmap.

    • Key elements are;

      • How can we engage with the community

      • How can we share the results of how the collected funding is spend

      • What kind of utilities can we give to our community

  3. Once we got the info that we needed and the commitment from the NPO we start setting up the project on our platform.

What do we need from you to set up a NFT project?

We don't need much! We have a team with all the needed expertise to set up the NFT campaign. We only have 2 requirements that we need to align with you which is crucial for the process. Firstly, we need you to back up the project, communication-wise. We consider ourselves as the enablers of the projects that are here to help you to serve a special cause. Therefore we would like to communicate through our platform your name and maybe add some quotes from you referring to the projects and the collaboration. This is important to let our NFT buyers (contributors/supporters) know that you are part of the project. Secondly, we need to determine together who's going to be in charge of the wallet. Preferably you as an organisation will set up a wallet where we can transfer all the revenue (directly from the sales). If this is somehow not possible we can find another way to make sure that the collected money will get to you. We have several options that we can discuss together to see what best suits you.

In the end, If you can support us to make it a success in any way (e.g. Marketing or Development) of course all the help is always welcome. We would really appreciate your engagement with us.

Additionally, we can help you find the right platform to convert "crypto money" into fiat money. We are currently trying to establish a partnership with a service provider to be able to facilitate this in a seamless way.

What happens after the NFT project is sold out

Well, first of all, it's time to pop the champagne since we successfully sold all the 10.000 NFTs! Meaning you got the maximum donation amount that we were aiming for! Yay! On top of that, you've created a community of 10.000 NFT holders. This community with supporters from all over the world is a new platform for you to create a new type of engagement. We can advise you on how to get the engagement going and how to keep creating value within the community. If somehow you are not able to sustain the community yourself for instance because you don't have the manpower to keep it alive, we understand and that's fine. All the NFT holders will automatically have access to our Master community where all the NFT holders from several projects will be able to come together. We'll make sure that they'll get the most out of this unique membership and motivate them to keep supporting causes like yours.

How long does a NFT project take?

From the beginning (setting up the collaboration with an organisation) until the "end" (selling all the NFTs) can take around 1 to 1,5 months. Usually, the selling period is around 1 week. All the needed preparations are what takes most of the time. Here is a high overview of the activities that we need to execute as a team:

  • We need to align with the non-profit organisation and get their commitment to support our project.

  • We need to find an artist (luckily we have a broad network in the art scene) that would like to contribute with a unique design for a specific cause.

  • Artist needs time to create the visual design for the NFT

  • We need to create a web page with all the information about the project and who's behind it. We aim for 100% transparency

  • Our developers need to set up the infrastructure for supporters to be able to buy NFTs via our webpage.

  • In the meantime, we need to continuously promote the project and build a community.

The whole NFT project ends when the goals are met that we set at the beginning of the project.

Please contact us so we can see how we can help you:)

E-mail: info@socialpack.io