Last week, I got sent Jacob’s (@js_horne) new post announcing the new upgrade of the Zora protocol. This upgrade, in a nutshell, means that after the minting period of your NFT, Zora links with UniSwap and creates a pool for people to trade with aftermarket.
When the mint ends, the market begins.
I’m not a big technical person myself, and Zora is kind of built exactly for people like me: those who like to create and trade without having to know the intricacies of the technology behind it. The Zora platform allows creatives to easily turn their work into mintable NTFs - taking it so far such that the Zora app allows you to snap a photo on your phone and upload it straight onto Zora and those who want to mint it just have to double tap Instagram style. Kind of resembles the ease of pump.fun where all it takes is an idea and a few seconds and its a memecoin on Solana.
Usually when NFT creators finish their minting period, the minted NTFs go to opensea to get traded which means 2 things:
1) It’s really hard to sell/buy when you have to find someone willing to buy/sell to you.
2) How can we continually reward the creator for their work?
The new update means that a small portion of the minting fees are set aside and when the minting period is over, are put to creating an LP and the LP fees go straight to the creator.
Now, some of the minting fees are set aside to create a UniSwap liquidity pool (by wrapping the token into a tradable ERC20).
So what?
This fixes both of the problems we mentioned before:
1) Because of the LP, buyers/sellers can just buy/sell into the pool for a market decided price. It also means that anyone who missed out on the minting period can now get their hands on one for market price.
2) NFT creators can now continually get continually get rewarded for their work through the LP rewards (called secondary rewards)
Whereas before, minting was the end of the road for creators, it’s now just the first of two phases. The only value a creator could capture before was through minting fees and once the minting period was over, the rewards were too.
With the new update, creators can now get rewarded for the whole lifecycle of their work which means better compensated creators and better quality of work.
To learn more about the new Zora update, including technical details, check out Jacob’s post
https://x.com/js_horne/status/1821215028457967757
or the official Zora article
https://zora.co/writings/onchain-secondary-markets
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