The Redemption - Redeemable NFT project

Intro-

My name is Frankie and I am the founder of Alter, a streetwear brand that is utilising the ICON blockchain, we launched in July and have already progressed a lot in terms of connecting physical products to the ICON blockchain, all of our physical products come pegged with an NFT which is used to verify and authenticate the product along side some other benefits.

We have now started to move onto the next stage in connecting physicals to the blockchain, this is our mint and redeem streetwear collections. We have partnered up with many projects within ICON to kickstart this, people will be able to mint an NFT which is backed by physical streetwear/ merch for said projects, they are then able to trade, gift or redeem it for the physical product, upon redemption we send out the physical and back a claimed version of the NFT which acts like a receipt to verify and authenticate the product.

With each wave/ cycle we get a step closer to mass adoption and I genuinely believe redeemable NFTs will be a major part of the next wave pushing us even closer to mass adoption with the general public, we are already seeing big brands take a leap into the blockchain space and experiment with NFTs.

Tying physical products to an NFT make sense for a number of reasons, verification, authentication, IP use cases and speed of transferring ownership of a physical product are a few to name and we want to position The Redemption as the go to platform for redeemable NFTs.

So, what is The Redemption? The Redemption is a project tailored to redeemable NFTs, it will be a platform where people can use our services to Mint, Trade, Gift and Redeem NFTs for physical products.

Mint-

Projects/brands/Artists?

will be able to apply to list redeemable NFTs, this process will require certain verification steps to try safeguard users, along with this we will also have an emergency fund being built from a % of sales/ trading fees.

When applying, they will have the choice to either use their own products they have sourced or they can choose to let “The Redemption” source the products for them (If it is one of our available products). They will then be required to include certain information such as expected delivery time and details regarding the product in question etc.

To start we will be listing redeemable NFTs from Alter and partners of Alter. By hosting Alter+partners as the initial redeemable NFTs on the platform, it will be easier to manage testing while it is live and fine tune before we launch the application form.

IRL physical only artists?

Not only will this platform benefit already established NFT artist/projects/brands, it can also be used by IRL physical artists, by minting their physical work as an NFT and pegging it with the physical copy which can be redeemed at a later date, allowing them all the benefits of the blockchain. We already have a few big IRL artist that we could potentially on board with this model.

Trade- I personally like and am looking forward to this part, initially you may think “why would anyone trade an NFT backed by a physical product such as streetwear etc” but we see it all the time in the real world, an item will go on sale and sell out in which it will then be traded on the secondary market for a profit or years go by and a certain shoe, item of clothing or product will be in fashion/trending so it begins being sold for more than initial retail or more than previously purchased.

The good thing about having it on chain is that the unclaimed versions will be seen as the most pristine version, even more pristine than having all packaging, receipt and un-opened due to it still being stored with the brand/project/artist but you still own it. This also creates a physical trading system that is faster than traditional means, If you want to sell an NFT that is backed by a physical cap or canvas, as soon as it is sold thats it done, no need to send out the physical package even though you have theoretically sold a physical item.

We also have plans to implement an NFT trading desk, so you can potentially trade one redeemable NFT for someone else’s if agreed upon.

For example you could have a limited edition canvas and trade it for 2 other redeemable NFTs that you may be after.

Gift- What better way to introduce someone to the blockchain space, a gift is a great incentive to peek interest into exploring something.

People will be able to mint an NFT which is backed by a physical product and head on over to the gift page, where you will be able to enter someones ICX address and send the NFT plus a message as a gift. (we will also explore other options such as redemption codes to claim gifts via email etc).

Redeem- This is the final stage, this is when the holder decides they want to claim the physical product. The user will go to the redemption page where they can view all their NFTs which are available for redemption, they will select which one they wish to redeem and fill in the details and click redeem which will burn the unclaimed version out of circulation, we will then send back a claimed version of the NFT which will be used for the verification and authentication process, acting like a receipt.

We also have plans on implementing a separate page for people to view their NFT “receipts”, these won’t be seen on the tradable page as it would just cause confusion in which is claimed/unclaimed.

IP service?

We also plan to expand out to include an all in one IP service, this service will give people a way to profit from having IP rights of their NFTs.

People/projects would need to apply for this service.

  • We would then check the NFT they have applied for allows their owners the correct IP rights.
  • They will then be able to choose from a range of streetwear products, canvas or digital display screens. (More products will be added as we grow)
  • Send us the design which we will check is appropriate.
  • (Potentially) they would then need to send us the NFT in question, we would then hold it until all the redeemable NFTs are sold. This is to try prevent watering down an NFTs IP value. So if they have asked to mint 100 of which only 50 sell and they want the NFT back, we will burn the remaining 50. (We are still undecided on this mechanic and may tweak).
  • We would then list the redeemable NFTs for people to mint, once sold we will send the owner of the NFT the profits, minus production and fee costs.
  • We then deal with the redemption of the NFTs via our already established connections in the mentioned physical industries and with our base of operations already set up with Alter, this positions us perfectly for this.

Note: all of these products go through Alters sampling process, we only allow top quality products which has already been demonstrated with the Alter caps, so buyers can have peace of mind knowing this is not going to be low quality merch. We want to stand out and we believe people should receive a product which quality reflects the price they paid.

Why ICON?-

Well, Alter is already based on ICON so it makes sense to use the same chain but more importantly ICON makes sense due to a variety of reasons such as low cost and fast transactions along side BTP once it is developed, we see ICON being a true secure hub of interoperability, we aim to connect “the redemption” to multiple chains so BTP is important for our vision. Also ICON has had no major issues in the past few years, compared to other chains, the foundation and ecosystem looks stronger and stronger each day.

Benefits to ICON and current market conditions-

I fully understand some may feel this is not the right time for this kind of project, personally I feel it is a good time to build as we want to position ourselves to be ready and if we start building now we will be fully operational for when the market picks up, we will also be ready for when ICON bridge has more connected chains and BTP releases.

But what are the benefits to ICON? Well to start we plan on giving back 10% of fees generated to the CPS until 100% has been paid back, we will then drop this to a set % forever.

Following this, a large part of our marketing plan is targeted at projects outside of the ICON ecosystem, we want to focus on brining projects and communities over from chains that are connected to the ICON bridge, with incentives for the community such as “$200 per successful project partnered and using the redemption site” This will hopefully help bring other projects from different chains over, which is a direct benefit to the ICON chain, it also offers something unique to ICON and unique to the entire NFT space in general, if The Redemption becomes a hub for redeemable NFTs it will result in a large increase in txs and awareness for ICON which benefits the ecosystem.

We will also have incentives for the ICON community, we have already demonstrated this with Alter by giving away 10% of our main collection, airdropped over 200 NFTs which play a major role in phase 2 of Alter and act as a free mint for the phase 2 collection, along side many other ICX gift card competitions and sponsoring events. We will carry this forward with The Redemption.

Marketing-

For marketing, we are going the incentive route for the community to partake in. We will be doing a referral system, this system is designed to create community engagement and to start interacting with other blockchains, we feel this is more beneficial to the ICON blockchain as it starts merging communities rather than just focusing on the already established community within ICON which would not result in new network users.

How will the program work?

So we will be offering $200 for every project that successfully partners up with The redemption to offer redeemable NFTs on the ICON blockchain, we will be targeting chains that are integrated with the ICON bridge.

We will of course be doing standard marketing and community events along side the referral system and partnering with projects within the ICON ecosystem.

Maintenance-

Once up and running after the trial stage, we will be using platform fees to cover maintenance costs, along side building up an emergency fund and exploring the option to set up a node to help cover these costs for when the market is not as active.

Building-

I am not a developer/coder so we are in talks with developers within the ICON ecosystem and I already have the idea for the style/theme of the website so it is a matter of hiring a professional to bring it to life.

Will it have demand?

Thats the big question, personally I believe so with a few project already partnered with Alter to bring out redeemable NFTs and we already have one project from another chain interested in using the service and multiple IRL physical artists that would potentially be interested in coming on board, this is not to say it will have definitely have huge demand but this shows a little bit of interest before we have even publicly announced or marketed the project. Merch is also relatively sought after in the NFT space, with a lot of community members wanting it to represent their favourite projects and a lot of community members wanting a way to profit from IP rights, It also gives IRL physical only artists a way to benefit from the blockchain/NFT space.

Funds-
Funding total $20500

Breakdown:

Full-stack JavaScript developer ($3000/month for 2 months = $6000)

Smart contract developer ($3000/ month for 2 months = $6000)

UI designer/ creation ( $1750/month for 2 months = $3500)

1x full time project manager (including marketing management and business analyst)- $1500/month for 2 months = $3000

Marketing budget- $2000 ($1000 reserved for 5 project referrals and $1000 on marketing materials, giveaways etc)

The project manager funding will also be used as a buffer incase more backend development or other costs need covering such as initial hosting fees etc.

Note: I understand certain parts of the project are centralised but this is due to the nature of the project, there are certain centralised aspects that can not be avoided however we want to create it as decentralised as possible so we will be looking at ways to make it more automated and decentralised as we grow and expand.

Feedback

We would love to get the communities feedback on this, any questions please feel free to ask here or send me a DM on twitter or discord! thanks for your time

Love this idea _Alter. It’s really unique & clearly a lot of thought and passion has gone into how it will work. It’s innovative and when Icon’s interoperability kicks in, they’ll be great opportunities to expand with partnerships and into other chains.

2 Likes

Great project! It focuses on a successful and vibrant area, being NFT’s, but also filling a void no one has tried tackle as of yet. Furthermore it can serve as a new ‘bridge’ pun intended towards cross chain ecosystems.

I would like to see some more clarification about:

  • metaverse wearables being part of this project?
  • made to order vs made to stock strategy in relation to minimum order quantities (storage time limits / redeemable time limits)
  • Does to IP right service plan to serve a minimum order quantity in relation to the chosen garment or will individual holders also have the opportunity to order one piece for personal use with their favourite NFT on it?
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Thanks for the kind words!

Clarification on said points:

  • So metaverse wearable will be a part of it but will be more of an option, for example mostly if not all Alter streetwear will be metaverse compatible but if a project chooses not to have their products metaverse compatible that is fine. We will make it clear which ones are and which ones are not.

  • Glad you mentioned this, so some products will be made to order in which there is not much worry regarding storage costs nor MOQ however some products will require storage and come with a MOQ.
    Now with the ones which we deal with, we ideally do not want to put a time limit on redeeming and we plan on setting aside some platform fees from the initial sale but more importantly each redeemable NFT will have a set secondary royalty fee which will go towards storage, operating and other longterm costs of the physical side.

(Down the line we may potentially add a deadline to redeem certain redeemable NFTs if said NFT project is no longer active and trading activity of said NFT has been inactive but that is a maybe and will likely talk with the community on it)

Other projects that have their own physicals and are dealing with the redemption process, may choose to have a time limit on redeeming but again this will be made clear on the NFTs.

  • IP service will have no MOQ, these are products we would have either bulk ordered or are made to order, so yes, if you wanted one piece for personal use then that would definitely be possible.
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Exactly what I wanted to hear/read. Especially the part of no MOQ for IP service is great. No barrier for people to get merch with their favourite NFT on it, if they own the IP rights that is. :star_struck:

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I’m not saying anything about the project claiming to be decentralized, i just want to point out that there are a lot of centralized points of failure in this plan. Hopefully these are evident as they are the first thing noticed. IDK if any of these can be automated and/or more decentralized at some point but if so i think that’s the optimal situation.

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Hey, yeah so the project is definitely not fully decentralised, i don’t think it would be possible for this kind of project to be fully decentralised in my opinion due to certain aspects of it. However, we will definitely be looking at making it as decentralised and automated as possible, as we grow and expand we will definitely be looking at taking certain manual parts out and automating them, alongside making it as decentralised as we can.