Foundation NFT Marketplace Review 2023: Security, Fees & Features
Foundation NFT Marketplace Review: Our Opinion
Foundation NFT is an NFT marketplace for advanced users who don’t mind paying extra in fees (5% which is more than the average industry 2.5%) for a massive selection of NFTs and referral-only creator eligibility.
An Overview of Foundation NFT Marketplace
Foundation marketplace was founded by Kayvon Tehranian in February 2021 as an NFT marketplace to serve creators and collectors. Kayvon is the current CEO of the Foundation NFT platform that enables creators to use blockchain to build new connections with collectors and monetize their work by minting digital assets as NFTs.
Foundation works just like any other NFT platform as it offers a ton of categories for users to select from and pay for using their connected Ethereum wallet.
Foundation platform stands out in its creator recruitment process as creators must be invited by a current member of the Foundation community to be eligible to list their digital art.
Key Features of Foundation NFT Marketplace
Foundation marketplace users can burn their tokens and remove them permanently from the Ethereum blockchain by burning them. Burning an NFT is an irreversible transaction as the tokens are permanently destroyed. If you want to burn an NFT, visit your Foundation NFT Marketplace profile and do the following:
- Go to the NFT you wish to burn
- Click the “Manage” button. If this button is not available, you will need to remove the NFT from Foundation’s NFT marketplace.
- After removing the NFT from the marketplace, click on “Manage” and click “Burn NFT”
If the “Buy Now” price is set on the NFT you need to remove it to be able to burn it. Also, if the NFT is listed, you will need to unlist it. NFT burning incurs gas fees, so you will be charged for the transaction.
If you have a collection you wish to remove, you will need to burn each digital art in the collection. After destroying the NFTs in the collection, you can destroy the collection by going to the empty collection and clicking “Self-destruct”. The “Self-destruct” feature is only available on collections that were created on the Foundation marketplace.
Foundation NFT pays creators 10% royalties for all secondary sales. Secondary sales happen when an NFT created on the Foundation platform is listed and sold on other NFT marketplaces.
While Foundation offers royalties on secondary sales, it cannot be guaranteed because royalties are not managed on the blockchain. Since this is not managed by the blockchain, some NFT marketplaces do not honor royalty payments. If a creator’s digital art is resold on a marketplace that does not honor royalty payments, the creator will not earn any royalties on the NFT.
Digital Creators on Foundation NFT can split or share their earnings with up to 3 other recipients. With this feature, creators can reward collaborative efforts between artists, galleries, musicians, record labels, etc. They can also donate directly to causes they care about by splitting their earnings.
All the participants in a split receive funds from the primary sales and royalties from secondary market sales. The percentage each recipient gets from the Royalty is dependent on the original split percentage.
To split earnings on an NFT art on Foundation NFT, do the following:
- Click the “Create a Split” button
- Click “Continue”
- Type in the recipient’s username or wallet address
- Select the percentage each recipient will receive for the split. The total of all the percentages must be 100%
- Once this is done, mint the NFT
Foundation NFT only supports splitting with 3 other people. There is a limit to how many recipients can be added to the split because more wallet addresses result in a higher gas cost of minting the NFT.
Once an NFT has been minted or sold, the creator cannot change or update the Split. The split can only be reviewed by burning the NFT, minting it again, and setting new percentages. Also, a new split cannot be created when a work is already on the secondary market. Once a split is created, it will be displayed in the “Splits tab” on the profile of all the recipients.
Types of NFT you can Buy and Sell
Foundation NFT is set up more like an art gallery. It is one of the best platforms for users searching for exclusive digital art NFTs. The marketplace is focused on digital artwork and attracts over 100,000 artists. You will be able to find a selection of videos, unique images, and 3D pieces.
The platform states that audio NFTs will soon be available. That said, its NFT marketplace includes both primary and secondary sales. Primary sales are NFTs sold by the original creator. Secondary sales are NFTs sold by another seller, not the original artist.
Foundation NFT Marketplace only supports the Ethereum blockchain.
Currently, Foundation NFT Marketplace supports Coinbase, Metamask, and WalletConnect.
Foundation NFT supports minting on its platform. However, you must be approved as a creator to use the minting service.
To start the process you need to create a collection which is a smart contract on Foundation. You will find the “Create” button at the top right of every page. Click the “Create a new collection” button then set the symbol and name of the smart contract. This step is crucial as after you put your smart contract on the blockchain you can’t change it.
Next, you’ll need to deploy your smart contract. To do so, click ” Deploy your smart contract”. This will trigger a transaction in your connected Ethereum wallet. You’ll need to approve the transaction and pay a network fee (gas fee). Next, you can customize your collection by adding a header image and logo.
Now that you’ve customized your collection you can begin minting your NFTs to add to it. To do so, click the “Mint NFT” button which will now be added to your collection page. Next, upload a media file (JPG, GIF, SVG, PNG, MP4, GLTF, or GLB).
Foundation’s current file size limit is 50B. Make sure that your description and title are okay before minting. All details will be recorded on the blockchain so you won’t be able to change them after minting your NFTs.
Foundation offers an option to split NFT in your collection. You’ll see a “Create a Split” toggle option where you can include up to 4 collaborators or beneficiaries. Using it will allow you to add a percentage for each member of a Split to share how much each person will earn from the primary sale and the royalties they’ll get in perpetuity.
To complete minting your NFT, preview your artwork and its details, and click the “Mint NFT” button. You’ll receive a prompt to sign your transaction from your wallet as well as approve the gas fee. Next, wait for the minting process to be completed.
How to Buy NFT on Foundation Marketplace?
Foundation offers 3 ways to buy NFTs: Buy Now, Offers, and Reserve Auctions.
Using “Buy Now” you can seamlessly purchase the NFT of your choice by going to the NFT you want to buy and clicking the “Buy Now” button. Next, confirm the transaction in your wallet and pay the associated gas fee.
All digital assets on Foundation are available for offers. With an offer, you get to put your Ethereum in escrow and once you confirm the NFT is legit, you can release payment. To make an offer go to NFT and click ” Place Offer”. Enter the offer amount in ETH, and confirm the transaction plus the associated gas fee. Offers expire after 24 hours and if no party agrees, your Ethereum is returned to your wallet.
This method kicks off a 24-hour auction by meeting the item’s reserve price by bidding on an active auction NFT before the timer expires.
Foundation NFT Marketplace Fees
Foundation NFT charges a marketplace fee of 5%. For resales of NFTs you purchased, there’s a 10% fee in royalties paid to the original creator. So you’ll get 85% of the sale price.
Here’s how this works. If you create an NFT and sell it on Foundation, the platform considers this an initial sale and you’ll get 95% of your total sale price. Foundation charges 5% here. However, if you resell an NFT minted by another person, the platform considers this a secondary sale and you’ll get 85% of the total sale price. Foundation charges both the standard 5% marketplace fee and the original creator receives 10%.
Compared to other platforms like OpenSea and Rarible which charge 2.5% in platform fees, 15% is quite expensive for the average user.
Foundation NFT Marketplace Payment Methods
Foundation only offers one payment method which is Ethereum. To use it you can buy Ethereum on any of the popular cryptocurrency exchange platforms and send it to your wallet.
Foundation NFT Marketplace Security
Unlike most NFT marketplaces, all NFT transactions made on Foundation NFT are stored publicly and securely backed by the Ethereum blockchain. All NFTs move into the Foundation marketplace contract when buying and selling.
Even though the ownership status of all NFTs listed on the platform is displayed as “Foundation: Market”, the NFTs belong to the owner. The owner has full control of the NFT and can choose to unlist it from the platform. To protect collectors, NFTs in a live auction can not be unlisted.
Users with complaints can contact the Foundation NFT Marketplace support team by submitting a request on the platform. The support team is available 7 days a week and responds to requests within 6 to 10 hours. In some cases, the response may exceed 24 hours. Users are also encouraged to check the well-equipped Help Center on the website for answers to their questions before contacting the support team.
Foundation is the best fit for digital art enthusiasts. However, the platform charges expensive commissions (up to 15% for resales), which can dissuade the average user, this fee is only considered low when compared with the fees charged by an ordinary physical art gallery. That said, features like split collections and 10% royalties on resales make the platform a great choice for creators.
Most frequent questions and answers
Yes, Foundation is a good NFT marketplace for digital art enthusiasts and creators. Foundation prides itself in being the new creative economy that is bringing digital creators, collectors, and crypto natives together to move the crypto art culture forward.
OpenSea is more established and hosts more NFT collections than Foundation. OpenSea also charges cheaper fees just (2.5%) per transaction.
The primary difference is the fees they charge and the amount and types of NFTs on each platform.
Yes, Foundation supports both Metamask and WalletConnect.
Yes, Foundation does not have custody of your NFTs. Rather, both the funds in a current bid and the asset are placed in a smart contract escrow.
We always try to provide the most accurate information available, and make sure our team follow through.
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