NFDomains Segments Live: A Profitable Update For Popular Roots

NFDomains segments Algorand launch

NFDomains Segments Live: A Profitable Update For Popular Roots 

The platform NFDomains has launched the their segments update, which allows users to now add segmental sequences to their Algorand domain names. Each domain root (e.g. "user.algo") can mint an unlimited number of segments, however currently segments can not mint new subsegments. 

NFDomains is an Algorand name service and marketplace for non-fungible domains, which allows Algorand users to purchase, trade and use unique & human-readable identities for your Algorand wallets. As a result a users crypto wallet address can be something more palpable than a random combination of numbers and letters.

The Costs of Minting

There are two main costs of minting a segment. Those two fees consists of the platform fee and a carry cost. The platform fee is $4 USD or 25% of the sale price, whichever is deemed greater at minting. The more segments that are minted, the lower the cost of each segment will be. 

The carry cost is approximately 5 $ALGO for each root or segment, this is due to the minimum balance requirement on the Algorand blockchain

Profit From Your NFD Segments

NFDomains report on their website that root segmenting can either be locked or unlocked to other users. Every root starts locked by default, but by unlocking segmenting the owner of a particular root can let other users freely print segments for themselves in return for a fee (e.g. "cool.user.algo"). This may be particularly profitable for popular roots. The owner will have no control over segments that have been minted by other users for his or her unlocked root domain.

If the NFD root is locked and the owner can only mint segments by themselves, nevertheless can they still chose to sell segments they have minted on the market. Resale of any minted segments has a 5% commission enforced to them.

In order to enable segmenting users are required to upgrade their smart contract to the latest version 1.16.

Article Author: Martin