Great oaks from small NFT acorns grow…
Welcome to my fun dumb experiment wherein I hope to learn how NFTs and different Rarible features work.
- Buy Crypto Acorns NFT collectible playing cards
- Collect the 12 accompanying secret seed-phrase words (Locked content visible only to holders of NFT)
- Use the seed-phrase words to access the Royalty Vault containing 50% royalties of all sales of the Crypto Acorns collection
- Smile :-D
Crypto Acorns — The Full Shabang
Ok, so you want to read the full details of Crypto Acorns: what it is, how to collect them and what’s the deal with the accompanying seed-phrase words?
Welcome, and thanks for reading on :-D (please give a clap so I can show my wife that I am not completely wasting all of my time alone on my computer when I should be working!)
I have created a suit of cards, Crypto Acorns, (on Microsoft Publisher of all things) as a fun way to familiarise myself with the NFTs amid the current craze that has taken over the cryptosphere. While playing around on Rarible and learning how the royalty system works, I came up with a fun and cool idea (well, I think so anyway) that would allow both artists and collectors alike to share in the popularity of an art collection — by sharing the royalties!
What is it?
Crypto Acorns is a collectible suit of digital playing cards that lives on the Ethereum blockchain as a set of NFTs (Non-Fungible Tokens). Collectibles in their own right with limited issuance, they also come with a bonus from the ‘artist’ (that’s me)—access to 50% royalties for the loyal collector that grabs the full complement of cards!
The cards will be released periodically as each edition sells out (there will are fewer editions of each subsequent collectible, half to be precise — in honour of Satoshi’s halving mechanism in BTC) and the availabilty of each NFT is listed below:
Ace of Acorns: 8192 editions
2 of Acorns: 4096 editions
3 of Acorns: 2048 editions
4 of Acorns: 1024 editions
5 of Acorns: 512 editions
6 of Acorns: 256 editions
7 of Acorns: 128 editions
8 of Acorns: 64 editions
9 of Acorns: 32 editions
10 of Acorns: 16 editions
Jack of Acorns: 8 editions
Queen of Acorns: 4 editions
King of Acorns: 2 editions
How can I collect them?
Simple! The cards are available initially for sale on Rarible here, and can be bought using Ether.
In the event that the card you want to collect sells out, it may become available for sale on the secondary market (i.e. if the new owner decides to sell it on)— you can check this out under the ‘Owners’ tab on Rarible, which rather helpfully details all current owners, as well as showing if the token is for sale and at what price.
(This article assumes a certain level of understanding of using dApps and Ethereum wallets; MetaMask in particular. YouTube has heaps of videos on buying cryptocurrency, setting up wallets and using dApps, etc.— if you are unsure of anything in this article, or in crypto in general, I suggest checking it out first, or Google, to fill any knowledge gaps you may have.)
What’s the deal with the seed-phrase?
Ok, again, I am assuming you have a certain level of understanding about how cryptocurrency wallets work. In short, a seed-phrase gives whoever possesses that seed-phrase access to the cryptocurrency wallet and the funds therein (so it is very precious and should never be disclosed to anyone). MetaMask wallet seed-phrases consist of 12 words, which, when entered into MetaMask in the correct order, grant access to the wallet account and associated funds.
“Ok, ok, but what does this have to do with Crypto Acorns and pictures of playing cards?”
Thank you for asking!
Well, each playing card from Ace through to Queen of Acorns gives the owner access to one word from the 12-word seed-phrase (via the locked content). This word only becomes viewable to the buyer after purchasing the NFT.
Above, you can see that the locked content consists of the alphabet (now you know your abc’s, next time won’t you sing with me?!). This is where the secret seed-word can be accessed in Crypto Acorns. (If you love my Microsoft Paint efforts, you can buy it here — worth a shot.)
“But aren’t there 13 cards in a suit, but only 12 seed-words?”
Yes! A little dilemma.
The solution: pass it on!
So I am passing my dilemma on to collectors — instead of issuing the seed-words in sequential order, they are given out-of-sequence, with the 13th card in the series, the King of Acorns, providing the sequence the words are to be entered to access the wallet, such as the following: 4, 2, A, 6, J, 5, 7, 9, Q, 10, 3, 8.
(This is not the sequence btw. Or is it? It’s not, but if you didn’t try it, and later found out that it was, you would be soooo cross with yourself, wouldn’t you? Don’t waste your time; it’s not the sequence. It’s really not. But is it?)
Wait, how does the 50% royalties get to the wallet?
Good question, thanks for asking :)
The smart cookies over at Rarible have allowed artists, noted as Creators, who originally mint NFTs to set a royalty charge for all future sales which is then deducted and paid directly into the artist’s wallet by very clever smart contracts — a great way for artists to reap the rewards from the fruits of their labour long, long into the future.
The artist sets the % fee when initially creating the token and that same unchangeable % fee* is automatically forwarded to the Creator’s wallet from all future sales — cool, right?! In Crypto Acorns this Creator wallet is what we call the Royal Vault.
*New owners of an NFT cannot change the royalty fee that is paid to the original creator. This fee can only be set when the NFT is originally created. Buyers are advised of the royalty fee associated with assets when purchasing, leaving them informed of any royalty fees that will be automatically deducted should they sell the NFT in the future.
An artist sets an initial selling price for an art piece on Rarible at 1 Ether, with a royalty fee of 10%.
Rarible charges a 2.5% service fee to the seller on all sales made.
For the initial sale, as it is direct and does not involve royalty payments, the artist will receive 0.975 Ether (1 Ether minus 2.5% service fee = 0.975 Ether).
Should the new owner now go on to sell the art piece for 2 Ether, the artist, through the royalty charge implemented by smart contracts, will automatically receive 10% of the new selling price directly into their Ethereum wallet.
10% of the new selling price = 0.2 Ether, giving a running total of 1.175 Ether paid to the artist (0.975 [from initial sale] + 0.2 [10% royalty fee from secondary sale] = 1.175).
The seller will receive 87.5% of the sale price (100% minus 10% royalty fee minus 2.5% service fee), netting them 1.75 Ether in this case (2ETH [selling price] minus 0.2 [10% royalty fee] minus 0.05 [Rarible 2.5% fee] = 1.75ETH).
Should the subsequent owner then go on to sell the piece again for, let’s say, 5 Ether, the artist, again, will receive a 10% royalty fee on that sale, automatically generating a payment of 0.5 Ether directly into the artist’s wallet, resulting in a running total of 1.675 Ether for the artist.
The seller, again, will receive 87.5% of the sale price, netting this particular seller 4.375 Ether.
This continues on in perpetuity , giving the artist a recurring stream of income if pieces are repeatedly resold.
“WOW! Cool story bro’, but what does that have to do with this, us and digital playing cards that you created on Microsoft Publisher?”
Ok, that is just a little background to help you understand how the Royalty Vault will be funded by sales and why the NFTs were created by a separate account and transferred to my Cryptosoc account for selling…
Just when I thought I was ready to set my new fun experiment in motion, I luckily realised that if I Created the NFTs on Rarible using my own Cryptosoc account and used the words from my own wallet seed-phrase I would effectively be giving away the key to accessing my own funds (I was closer to doing this than I dare to admit!), which I obviously don’t want to do.
So, I created a brand new MetaMask wallet to act as the Creator account (Royalty Vault) that Created the NFTs on Rarible in the first instance (you can track this on the blockchain and on Rarible itself via the history tab). When Creating the NFTs, the royalty fee was set at 50%, which means that all sales will automatically send 50% back to the Royalty Vault.
After Creating the NFTs, I transferred them to my own Cryptosoc account to sell on Rarible. This means that I, as a seller will receive ~50% (minus any Rarible service fees incurred) of the initial sales made into my personal Cryptosoc account , with 50% automatically going to the Royalty Vault.
Should the cards be resold thereafter, my account shall receive no further payments, while the Royalty Vault account shall continue, in perpetuity, to receive 50% royalties on every single sale! Resellers can set their own selling price but will only receive ~50% (minus Rarible service fees), with the remaining 50% going straight to the Royalty Vault.
Here’s a little flow chart that probably explains it much clearer …
Anything else … ?
There might be some things I haven’t fully explained in the article, or you may have additional questions— please let me know by dropping a response below. I will answer questions in the responses and may add to this article if it may be beneficial.
Thanks for reading, and really, all claps would be greatly appreciated!!