NFT Pledging – An Innovative Way to Trade

04/27/2023 01:20 • Tech Ticker • 130 views

On April 27th, it was reported that the NFT projects DeGods and y00ts have both been launched with unmanaged pledges. Users only need to cancel the pledge and re pledge your NFT to participate. During the pledge period, the NFT will remain in the holder’s wallet, but these NFTs will be frozen by the pledge contract. NFTs cannot be transferred/traded until the pledge is cancelled, but the Token gated application will not be affected. In addition, ETH’s DUST pledge/cancellation fee will be waived next week, and it is planned to resume the fee on May 4th.

NFT projects DeGods and y00ts have been launched as non custodial pledges

As the popularity of Non-Fungible Tokens (NFTs) has surged in recent times, new projects and innovative models have emerged to suit the needs of the ever-growing market. Among these new developments, pledging has become a popular means of generating interest and value within the NFT ecosystem. On April 27th, NFT projects DeGods and y00ts were launched with unmanaged pledges, opening up new opportunities for users to participate in the trade.

What is NFT Pledging?

NFT pledging is a new mechanism within the NFT ecosystem in which users can pledge their NFTs to a contract, essentially locking them up for a certain period. During this period, users cannot transfer or trade their NFTs, effectively freezing them. However, users can still access token-gated applications that use the NFT as a requirement.

How Does it Work?

To participate in a pledge, users simply need to cancel the current pledge and re-pledge their NFT. The pledge contract will freeze the NFT, and it will remain in the holder’s wallet for the duration of the pledge period. While users cannot trade or transfer their NFTs during this period, they can still use them in token-gated applications.

Benefits of Pledging

One of the main benefits of pledging NFTs is the ability to generate interest and value within the NFT ecosystem. NFTs that are pledged receive a higher perceived value than those that are not, as they are seen as more scarce and exclusive. Pledging also incentivizes holders to keep their NFTs, as pledging and locking them up restricts their ability to sell or trade them during the pledge period.

Unmanaged Pledges

DeGods and y00ts are two new NFT projects that have both been launched with unmanaged pledges. This means that users are free to pledge and cancel their NFTs as they see fit, without any control or management from the project owners. These unmanaged pledges allow for greater flexibility and freedom for users, while still offering the benefits of pledging.

DUST Pledge/Cancellation Fee Waived

One issue with pledging NFTs is the cost involved in pledging and cancelling. ETH’s DUST pledge/cancellation fee can be quite high, which can be a deterrent for some users. However, from next week, the fee will be waived, providing an opportunity for users to participate in pledging without the added cost. The fee waiver is planned to end on May 4th, so users should take advantage of this opportunity while they can.

Conclusion

NFT pledging is a creative and innovative way to generate interest and value within the NFT ecosystem. With unmanaged pledges and a waiver on the DUST pledge/cancellation fee, now is the perfect time to get involved in pledging and see the benefits for yourself.

FAQs

1. How long can I pledge my NFT for?
The length of the pledge period depends on the project and the specific pledge contract. Check the project’s website or documentation for more information.
2. Can I cancel my pledge early?
Yes, users are free to cancel their pledge early if they choose to do so. However, there may be penalties or fees involved, so be sure to check the project’s rules and regulations beforehand.
3. What happens if I forget to cancel my pledge?
If you forget to cancel your pledge, your NFT will remain locked up for the duration of the pledge period. Be sure to keep track of your pledges and cancel them when necessary.

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