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NFT Evaluation Guidelines

Status:ReportVersion:

1.1.0

Created on:

19.02.2024

Last edit:

22.03.2024

Imprint
Report “NFT Evaluation Guidelines”
A collaboration between Wirtschaftskammer Österreich (WKO) and ABC Research GmbH within Project“Approaches and Potential of Analytical Approaches for the Evaluation of NFT Quality”
Authors: Vinzenz Treytl (ABC Research), Igor Kravchenko (ABC Research), Petro Dmytriiev (ABC Research),
Christian Baumann (AustriaPro)
Supervision: Gerald Laga (WKO), Christian Boser (AustriaPro), Christian Baumann (AustriaPro)
Vienna, March 2024
Contact: vinzenz.treytl@abc-research.at

Note on the use of inclusive language
For the sake of readability, this document does not use gender-specific formulations. Where personaldesignations are only given in the male form, they refer to both men and women equally.

2/32

Table of Contents
NFT Evaluation Guidelines ....................................................................................... 1
Table of Contents .................................................................................................... 3
1

Introduction ..................................................................................................... 4

2

Risks and Limitations ........................................................................................ 53

NFT Evaluation Guidelines Overview .................................................................. 6

4

5

3.1

Structure of Evaluation Criteria ....................................................................... 6

3.2

Criteria Scoring System .................................................................................... 7

3.3

Factors Breakdown .......................................................................................... 8

Criteria for NFT Evaluation ................................................................................ 9
4.1

Economic Factors ............................................................................................ 9

4.2

Technical Factors ........................................................................................... 14

4.3

Legal Factors ................................................................................................. 19

4.4

ESG Factors ................................................................................................... 21

Evaluation Example – Mocaverse ..................................................................... 22
5.1

Background Information ................................................................................ 22

5.2

Criteria Based Evaluation ............................................................................... 23

5.3

5.2.1

Economic Factors ............................................................................... 23

5.2.2

Technical Factors ............................................................................... 26

5.2.3

Legal Factors ...................................................................................... 29

5.2.4

ESG Factors ........................................................................................ 31

Evaluation Results ......................................................................................... 32

1 Introduction
Blockchain technology enables several types of tokens. One of these types is so -called NFTs. A
non-fungible token (NFT), is “a unique digital identifier that cannot be copied, substituted, or
subdivided, that is recorded in a blockchain, and that is used to certify authenticity andownership.” 1
Public attention was drawn to NFTs as NFT-based digital art collections became a global
phenomenon and skyrocketed to multi-million dollars in value in 2021 2. As one would expect,such standout launches led to an entire plethora of other NFT collections.
Although NFTs are mostly associated with digital art, this asset class is more d iverse andincludes NFTs that can be used in decentralized finance applications, NFTs that represent
ownership over physical assets, such as real estate, or over intellectual property such as
patents, among others. The NFT sphere is still in its infancy, s o the range of use cases can be
expected to grow over time.
From a technical perspective, NFTs are available on multiple blockchains, including Ethereum,
Solana, WAX, etc., and can be stored in a wallet, transferred, or sold. Functionality -wise NFTs
differ a lot as some NFTs can have programmable features allowing them to change over time,
while others can be combined with each other to mint (create) a new NFT etc.
Overall, NFT analysis is thus a complex process that is affected by the use case of a specifi c NFT,
the blockchain it is based on, the objectives of the analysis, etc.
This guidelines document (hereinafter The Guidelines) was conceived as a practically oriented
tool for a more nuanced analysis of NFT quality. The analysis incorporates Economic, Technical,
Legal, and ESG topical focuses and is conducted at three levels of analysis, which include
Standalone NFT, NFT project, and Infrastructure. Given the diversity of NFTs, the list of criteria
used for the analysis must be seen as a starting point for a more in-depth analysis. The
Guidelines can only be a part of the NFT evaluation process and cannot be used to replace
judgment and assessment provided by industry professionals.
It is important to note that the Guidelines is just a first iteration of a NFT quality evaluation
framework. This entails that it comes with limitations and requires an understanding of thefundamental principles of blockchain technology and cryptocurrencies . As NFT investments arevery high risk by nature, these limitations need to be well understood when using the
Guidelines (see section 2 Risks and Limitations)
As these guidelines are a work-in-progress project, your feedback is more than welcome.

1
2

https://www.merriam-webster.com/dictionary/NFT
https://cointelegraph.com/news/biggest-nft-drops-and-sales-in-2021
4/32

2 Risks and Limitations
Disclaimer
The Guidelines can be used for educational and informational purpose s only. The information
contained in the guidelines is not intended as, and should not be understood as, financial
advice. The information contained in this report is not a substitute for financial advice from a
professional.
We have done our best to ensure that the information provided in the Guidelines is accurate
and valuable. Regardless of anything to the contrary, nothing available in the Guidelines should
be understood as a recommendation that you should not consult with a financial professional
to address your situation.
We expressly recommend that you seek advice from a professional.
Project Stage Limitations
The Guidelines use a multitude of metrics to estimate the NFT quality, most of which can only
be applied to tokens that have been released and are trading. As a result, the Guidelines are oflimited use for NFT collections that are still under development since the amount of information
available for them is very limited.
Use Case Limitations
The Guidelines are limited to retail-focused NFTs and cannot be applied to NFTs on private
blockchains, B2B-oriented NFTs (e.g., NFTs used in supply chain management), and NFT-based
digital identities holding personal information.
Certain NFTs derive their value from projects they offer utility for. Although the Guidelines
aspire to conduct the deepest analysis possible, the assessment of certain project-specificcharacteristics, business models, market potential, etc. is out of the scope of the Guidelines.
As such, the evaluation of such NFTs based on the Guidelines should be complemented by athorough analysis of the project itself and the linkage between NFTs and the project.
Legal Limitations
The Guidelines cover basic legal aspects of NFT analysis, however, consultation with a lawyer
is advised before any NFT investment. Due to the novelty and complexity of the NFT sphere, its
regulation is scarce and varies greatly among geographic locations, making it virtually
impossible to compile an exhaustive NFT evaluation framework from a legal perspective.
Legal consultation is of prime importance for investors looking to use their NFTs for commercial
purposes, as they need to consider the copyright law, transfer of the copyright law, local
copyright rules, etc.
The Guidelines Limitations
The Guidelines rely on analysis criteria that also have limitations depending on the blockchain
platform, type of NFT, information availability, etc. These limitations are outlined section 4 of
the report for each criterion used.

3 NFT Evaluation Guidelines Overview
The goal of the Guidelines is to establish the quality of an NFT independent of its use case or a
specific user group. The evaluation of the NFT is based on various crite ria each independently
evaluated.

3.1 Structure of Evaluation Criteria
The analysis of the quality of an NFT requires the analysis of a diverse set of criteria that are
related to different aspects of a focal NFT. To facilitate the NFT evaluation procedure, t hecriteria were sorted along two dimensions: topical focus and level of analysis (see Table 1)
Table 1: Structuring evaluation criteria along two dimensions

Topical Focus →Economic

Technical

Legal

ESG

Standalone NFT

Criteria 1

…

…

…

NFT Project

…

…

…

…

Infrastructure

…

…

…

Criteria n

Level of Analysis ↓The topical focus distinguishes between four distinct focus areas for the analysis of an NFT.
1) Economic: This focus area investigates economic factors that influence the quality of an
NFT or an NFT collection.
2) Technical: This focus area looks into technical factors determining the quality of an NFT,
primarily covering the properties of an NFT’s smart contract, the characteristics of theblockchain it is based on, and its security.
3) Legal: One area that is important for the quality of a given NFT, is legal considerations.
These factors involve ownership rights, compliance with global and local laws, andcopyright mechanisms.
4) Environmental, Social, and Governance (ESG): This area investigates ESG factors which
include the environmental footprint of an NFT’s blockchain, interaction among thecommunity members, the appropriateness of NFT’s artworks, etc.

Questions with regards to the above focus areas can require different levels of analysis. For
example, while a specific legal aspect can only be established with regards to the NFT itself,
questions about the environmental footprint require taking the underlying blockchain
infrastructure into account. Therefore, the evaluation criteria were assigned to three distinct
levels of analysis: standalone NFTs, NFT projects as a whole, and infrastructure.

6/32

1) Standalone NFT: This level of analysis includes factors that are related to a singular NFT,
such as its transaction history, rarity, and the artwork of that specific NFT.
2) NFT project: This level relates to an NFT project as a whole, such as its development
plans, community, smart contract used for a collection, and team composition of thedevelopment team.
3) Infrastructure: The infrastructure level focuses on third-party components facilitating
the use of an NFT. Infrastructure covers characteristics of the underlying blockchain
technology, storage solutions, primary and secondary markets for NFT trading, legal
framework around NFTs, etc.
The outlined division across dimensions is not necessarily unique and serves primarily tosimplify the process of analysis. Future iterations can include for example a use case-specificdimension, which analyzes criteria that are specific to a certain type of NFTs, such as real -worldlinked assets.

3.2 Criteria Scoring System
In order to reach conclusions about the extent to which each criterion in the evaluation
framework contributes to the quality of a focal NFT, each criterion needs to be scoredindependently. Within the framework, scores give an indication of the status of the focal N FT
in relation to established standards and market conventions.
The suggested scoring system acts as a guideline for the evaluation and comparison.
A – TopB – Above average
C – Average
D – Below average
E – Low
With regards to the proposed scoring systems, several points need to be kept in mind. The
current version of the system allows for the comparison of different NFT collections across one
criterion. However, scores are not linear and should not be summed up to compute a total score
for a collection. 3 Furthermore, decisions about the quality of an NFT cannot be based solely ona high score in one criterion, as all factors should be considered.

3

Future iterations of the tool can include a calibration of scores for dimensions, allowing forquantification and, in turn, for the calculation of a total score for a given NFT.

3.3 Factors Breakdown
There exists a multitude of criteria that need to be considered when analyzing NFTs. The
Guidelines focus on a select few important evaluation factors to analyze in detail. For ease ofanalysis, each criterion can be sorted along the dimensions of topical focus and level of analysis.
The Guidelines focused on the following factors, which can be graded using the table below:
Table 2: Overview of selected quality criteria
Focus

Level

Topic

Analysisof

Criterion

EconomInfrastruct

How

ic

ure

efficient

Notes

Score
(A-E)

economicallyistheEconomic efficiency reflects the costs and speed ofon-chain NFT transactions.

underlying blockchain?
InfrastructHowliquidure

market

is

for

the

Liquidity measures how easily a position can be soldtheand is a key factor for risk management.

collection?
Infrastruct

What is the traction of

The traction of the collection reveals whether it isure

the collection?

increasingor

decreasingin

popularity,and,subsequently, in price.
Infrastruct

How active are NFT

Interest from sophisticated NFT investors signals theure

collection holders inhigh potential of the collection and attracts new

the Web3 space?

members to the community.

Is there a roadmap for

The roadmap shows the development plan of thethe project?

project and is thus of prime importance for its future.

Project
Technic

Infrastruct

How reliable is the

Reliability measures how stable the blockchain runs,

al

ure

underlying blockchain?

how well it is protected against various types ofProject

Is the source code of

Source code availability is necessary to verify thethe NFT available andauthenticity of the collection and to check the code

audited?

for potential bugs.

Is the NFT source code

Immutable code cannot be changed after being

immutable?

deployed on a blockchain, which increases security

attacks, and how established it is on the market.

Project

at the cost of flexibility.
Project

Does

the

code

project’s

Common libraries offer greater efficiency, security,

incorporate

and interoperability. Moreover, they make auditing

common libraries?
Infrastruct

Where

is

the

ure

metadata stored?

ProjectAre

the code much easier.
NFT

Metadata (e.g., audio, video, text, etc.) is an
essential part of virtually ev ery NFT, and its safety isof prime importance for a user.

Legal

there

copyright

Copyright T&C restricts the holder of an NFT when it

terms and conditions

comes to various use case scenarios. Copyrightassociatedviolations might result in a lawsuit.

with

the

NFT?
Infrastruct

How is ownership of

Copyright does not automatically get transferred

ure

the

with the underlying NFT, meaning that explicit

underlying

asset/artwork

copyright transfer terms are required.

transferred?
ESG

Project

What

arecommunitytheCommunity relations show the efforts of the team torelationsbuild a strong community that promotes inclusivity,

within the project?

equality, and mutual respect, and supports the
project.

8/32

4 Criteria for NFT Evaluation
4.1 Economic Factors
The analysis of economic factors focused on market -based factors, as these are important for
capturing the monetary benefits provided by holding an NFT. In addition, some basic
information about the underlying NFT project is evaluated.

Economic Factor 1: How economically efficient is the underlying blockchain?
Every blockchain is a sequence of blocks, and each new one is added to the previous one
sequentially after a specified period of time. This period is called block time, a nd it varies acrossblockchains, typically ranging from fractions of a second to several minutes. In order to add atransaction to a blockchain a user has to pay a fee that depends on a multitude of factors,
including the underlying technology, network congestion, complexity of an operation, etc.
Indicators: For our analysis, blockchain economic efficiency indicators include:•

Level and stability of transaction fees: Some blockchains have not only lower fees but
also higher throughput, helping fees to stay low even at times of considerable network
congestion. Other blockchains are more dependent on the level of network activity
when it comes to fees.

•

Block time: Blockchains with shorter block times are faster, provided that the network
functions normally.

Stably low fees and fast execution times earn blockchains a high score, according to Table 3:
Table 3: Economic efficiency evaluation

Block time, seconds<$1 consistently
Transactionfee (simple
transfer)<$1 with rare
spikes of $1-$10
Consistently<$10>$10 at times or
consistently

<1

1-10

10-60

> 60

A

A

B

C

A

B

C

D

B

C

D

E

C

D

E

E

Data collection: Data on blockchain fees and block times is usually available through a
blockchain explorer or special monitoring dashboards, which are available on Dune Analytics 4
and other comparable resources.

4

https://dune.com/browse/dashboards

Economic Factor 2: How liquid is the market for the collection?
Liquidity indicates how quickly and easily an NFT can be sold without significantly affecting theprice. The most liquid NFTs are listed on top exchanges and have numerous trades per day,whereas illiquid collections have virtually no trading volume or all the trades that happen at
the bid price, which is much lower than the listing (ask) price.
Indicators: For our analysis, liquidity indicators include:•

Number of sales over the last 30 days relative to the total collection supply: This
indicator shows how quickly an investor can sell a position and takes two rationales into
account. Bigger and more established collections are expected to have higher trading
activity. Furthermore, analyzing data over a longer period helps to eliminate the effects
of one-off events, such as batch sales at offer prices.

•

Bid-ask spread: The spread between the listing (ask) price and the highest offer (bid)shows the discount investors are faced with when wanting to immediately liquidate
their positions. While the number of sales in relation to the total supply shows whether
it is possible to quickly sell an NFT, the bid-ask spread denotes the discount that can be
expected for such a fast sale.

For the evaluation framework, these two indicators are analyzed in combination . Highly liquid
NFTs with narrow bid-ask spreads receive the highest mark. (see Table 4)

Table 4: Liquidity rating

Bid-ask spread

Number ofsales
over 30 days(% of supply)<10%

10% - 20%

20% - 50%

> 50%

<2%

A

A

B

C

2% - 5%

A

B

C

D

5% - 15%

B

C

D

E

> 15%

C

D

E

E

Data collection: Liquidity data is readily available on NFT marketplaces, such as Blur 5 or
OpenSea 6.

56https://blur.io/
https://opensea.io/
10/32

Economic Factor 3: What is the traction of the collection?
As the fundamental value for most NFT collections is hard to estimate, their prices are often
driven primarily by supply and demand fluctuations. From this perspective, collections thathave high interest from the public are likely to attract more new buyers, who in turn will drive
prices up.
This public interest can be considered a forward-looking indicator. However, sentiment on acollection can change rapidly, so it is a factor that must be constantly monitored.
Indicators: Metrics that can be used to estimate public interest in an NFT collection are:•Share of NFTs sold below the floor price over the last 30 days: If an NFT was sold “below
the floor”, it means that the seller accepted the buyer’s bid. While occasional sales atbid prices are not a warning sign, a situation where almost all transactions occur at bid
prices indicates that interest in the collection is waning.

•

Sales-to-listing ratio over the last 30 days: If the supply side (measured by listings)
outnumbers the demand side (sales) for extended periods of time, the price of an asset
will go down as new sellers will have to either list their NFTs below the floor or accept
bids at unfavorable prices.

As with the first economic factor, these two indicators are analyzed in combination to establish
the traction of an NFT or an NFT collection (see Table 5).
Table 5: Collection traction rating

Sales-to-listings ratio (over 30 days)

Share of
NFTs soldbelow thefloor (at
bids)

>1.5

1 – 1.5

0.7 - 1

<0.7

<30%

A

A

B

C

30% - 50%

A

B

C

D

50% - 70%

B

C

D

E

> 70%

C

D

E

E

Data collection: Data on NFT sale listing and sales prices is readily available on marketplaces
or directly through a blockchain explorer (e.g., Etherscan).

Economic Factor 4: How active are NFT collection holders in the Web3 space?
The analysis of holders of an NFT can lead to additional insights with regards to the market
traction of an NFT or an NFT collection.
Indicators: Several observable patterns can be an indicator of the quality of an NFT or the lackthereof, including:•

When several wallets transact with each other back and forth, this can be a sign of wash
trading. Wash trading is normally used to inflate price s and trading volumes of an asset.

•

When several independent wallets hold multiple NFTs each and continue to accumulate,
it is a positive sign for the collection as these holders reduce the supply on the market.
This is especially true if some of those wallets also hold well-established, blue chip NFT
collections, since the activity of such wallets is often tracked by other NFT investors,
searching for emerging NFTs.

•

If most of the wallets that hold NFTs from the collection are new or had little on -chain
activity, this can be a sign of inexperienced owners that are new to the space and thus
more prone to exit their investments following a price dip. While several new wallets
among holders can belong to experienced traders willing to preserve privacy by using
fresh addresses for purchases, multiple wallets with a long track record are desirable
among holders.

Table 6 helps score observable patterns of holders in order to establish the quality of an NFT.
Table 6: NFT collection ownership structure

Holders
Active NFT investors
Active independent
wallets
Independent, not-soactive wallets
Few transactions,concentrated ownership
No transfer history,
concentrated ownership

Description
Holder wallets also have blue chip NFT
collections, transfers are numerous
Holders are active in the crypto space;wallets are not linked
NFTs are spread across many wallets
that are new or not very active
Few owners control most of the supply
and transact mostly with each other
Very few transfers, one wallet controls
most of the NFTs

Quality Score
A
B
C
D
E

Data collection: Profiles of NFT collection holders can be analyzed using a blockchain explorer(e.g., Etherscan).

12/32

Economic Factor 5: Is there a roadmap for the project?
An NFT project roadmap outlines the goals and objectives of a project and helps to track its
progress over time. Events listed on the roadmap may include collaborations with othercollections, releases of NFT derivatives and proprietary tokens, marketing activities, etc. As
roadmaps are regularly communicated by projects, the lack thereof can be an indicator for
projects that are not very well managed. However, it is important to point out that there are
exceptions. For example, very mature projects that are feature -complete might not publish
roadmaps any longer. Also, in certain cases, such as with tokenized real estate, the absence ofa roadmap is justified and does not have a negative effect on the value of an NFT.
Table 7 outlines possible values and scores for this “roadmap” indicator.
Table 7: Project roadmap evaluation

Roadmap
Complete
Timeline is notfollowed
Has no timeline
Has no milestones
No roadmap

Description
The roadmap is complete, and all
deadlines have been met so far
Some of the milestones on theroadmap were reached with a delay
Contains milestones for the project
without any ETAs
Only describes a broad vision for the
project
No future development of thecollection is planned

Quality Score
A
B
C
D
E

Data collection: Roadmaps are typically found on social media accounts (X/Twitter, Medium),
and/or websites of a project.

4.2 Technical Factors
The Guidelines focus on the most important technical factors. These include characteristics ofthe smart contract and the broader code base of a project as well as questions about data
storage for the underlying digital asset.
Technical Factor 1: How reliable is the underlying blockchain?
The reliability of a blockchain is defined by its ability to withstand various types of attacks,
including a 51% attack, which is aimed at attaining over one-half of computing power, and asybil attack, in which many fake identities spam the blockchain, forcing it to go down. Reliableblockchains also have an established consensus mechanism, so they do not halt block
production in case of software errors of certain nodes executing dishonest behavior.
Indicators: Blockchain reliability can be assessed using the following metrics:•

Market capitalization: Blockchains with high capitalization typically have a larger
community of developers who promptly resolve technical issues. They also have a longer
track record usually, meaning that they were tested under different market conditions
and workloads and are more stable. Higher market capitalization also tends tocorrespond to a higher number of nodes/validators, thus making it harder for a potential
wrongdoer to take control of the network.

•

Downtime: Although blockchains are designed to func tion continuously, some nodes
acting maliciously or not responding might in certain cases result in a halt in block
production, meaning that the blockchain stops functioning. Downtime tends to be a
prominent issue for emerging blockchains in particular.

Table 8 shows how blockchains can be compared based on their reliability.
Table 8: Blockchain reliability evaluation

Downtime, minutes over the preceding year

Marketcapitalization,
billion USD

0<60 (planned
maintenance)>60 (planned
maintenance) or<60 (outage)>60(outage)

>50

A

A

B

C

10 - 50

A

B

C

D

1 - 10

B

C

D

E

<1

C

D

E

E

Data collection: Market capitalization is tracked by aggregator websites such as
CoinMarketCap 7 and Coingecko 8, while downtime is tracked by blockchain-specific dashboards.

78

https://coinmarketcap.com/
https://www.coingecko.com/
14/32

Technical Factor 2: Is the source code of the NFT available and audited?
The code of a smart contract creating the NFT is always publicly available on the blockchain but
only in the machine code format that is used by nodes of this blockchain. Since machine code
is not human-readable, developers use higher-level programming languages, such as Solidity,
to write their source code before compiling it into the machine code format.
Indicators: Users should only interact with smart contracts for which the source code isavailable on a blockchain explorer and for which the correspondence between the machinecode and the source code is verified. With regards to the publicly available source code, ideally,
the code of the smart contract should be audited by an auditor. However, this procedure is notmarket standard yet. At the same time, a shift towards professionalism and an increase in code
audits in NFT projects can be expected.
With regards to the matching of source code to machine code, this is important, because
otherwise a malicious developer could deploy a faulty machin e code but show the correctsource code and claim that these two correspond to each other.
Table 9 suggests scores based on the availability and trust worthiness of the smart contract
code.
Table 9: Source code reliability

Source code
Verified and audited
Published on a blockchain
explorer and verified

Not available/not verified

Description
Verified and audited by an establishedaudit firm
The source code is verified, but noaudit/an audit from an unknown firm wasconducted
The source code is unavailable or its
correspondence with the machine code
cannot be readily verified

Quality Score
A

C

E

Data collection: Availability and verification of the source code can be done via a blockchain
explorer. Audit results are normally available on the website of a project and the auditing firm,
respectively.

Technical Factor 3: Is the NFT source code immutable?
With regard to the source code of the NFT, immutability is another important characteristic tolook out for when evaluating the quality of an NFT. The source code is immutable if it cannot
be altered once deployed. Mutable smart contracts, on the ot her hand, can be changed by the
project’s team. This allows the contract’s owner, for example, to pause some functions of thecontract, mint new tokens, and replace logic in the contract, respectively.
Although mutability might be necessary to introduce c ertain features of an NFT and to conduct
technical updates, it comes at a risk of centralization, when the issuer of the collection has thepower to change the properties of the collection unilaterally. Additionally, it also allows for the
deployment of malicious or erroneous code.
Table 10 scores the immutability quality criterion.
Table 10: Source code immutability

Contract
Mutability
Immutable

Mutable by thecommunity
Mutable by asingle entity

Description
Set during minting (can potentially be inefficient for
NFTs with high circulation)
Several addresses are qualified to suggest changes toa Smart Contract, but the changes are only passed if
the predetermined number of addresses votes forthem
Changeable at any time by the single owner of thesmart contract

Quality Score
A

C

E

Data collection: The immutability of the contract can be checked using a blockchain explorer.

16/32

Technical Factor 4: Does the project’s code incorporate common libraries?
Even though NFT code can theoretically be created and deployed from scratch, in practice,developers rely on established standards and code libraries. For the most part, standards andcommon libraries undergo rigorous testing and scrutiny and are maintaine d by a large
developer community. Additionally, the use of standards also ensures compatibility with
common wallets and platforms such as OpenSea. Overall, their use increases the quality of an
NFT.
On EVM-compatible blockchains, such as Ethereum, Polygon, or Binance Smart Chain most NFT
collections are normally created using standards such as ERC-721, ERC-1155, or theexperimental ERC-404, and common libraries such as the ones developed by OpenZeppelin.
Table 11 helps analyze an NFT with regards to the use of standards and common libraries.
Table 11: Standard compatibility and use of open libraries

Base URI
Standard compatible,
open libraries used

Standard compatible,
limited use of libraries
Standard incompatible

Description
Smart contract fully compatible with anestablished token standard and is based on
established open libraries
Standard compatible, but either outdated
and less secure libraries are used, or
certain non-standard functions are
implemented but not audited
The standard of the NFT is not defined

Quality Score
A

C

E

Data collection: The use of libraries and contract standards can be traced via a blockchain
explorer. Non-EVM blockchains have their proprietary standards and libraries, which are also
visible using the appropriate blockchain explorer.

Technical Factor 5: Where is the NFT metadata stored?
Since storing information directly on the blockchain is very expensive, in almost all cases only
links to NFT metadata (e.g., images, audio, video, text, etc.) are stored there. The link can leadto a decentralized storage solution (e.g., IPFS), a centralized clo ud storage, or a regular server.
The latter two are more vulnerable to manipulation as a party that has access to the server can
replace or remove the NFT metadata.
The type and importance of the metadata of an NFT depends on the type of NFT. For example,
the underlying artwork is very important for collector items, while for other types of NFTs (e.g.,
those linked to real-world assets) contractual terms might form part of the metadata.
Table 12shows different options for storing artwork in relation to an NFT and the quality scoreassociated with it.
Table 12: NFT artwork storage options

Location
Blockchain(NFT metadata)

IPFS

Description
Storing on blockchain is desirable but only
possible for simple images that can be
drawn algorithmically
Address immutable, file 'undeletable'(unless unpinned when consideredabandoned)

Quality ScoreAA

On an NFT portal (e.g.,
OpenSea)

URL fixed, but not under control

C

In a Cloud storage

Dependent on Cloud, immutable URL

D

HTTP(S) on a webserver

The file can be modified at any timeE

Data collection: Artwork storage is a part of the NFT metadata, which can be checked for each
NFT using a blockchain explorer (usually using the token URI function).

18/32

4.3 Legal Factors
A legal analysis of NFTs can encompass a variety of areas such as intellectual property rights,
privacy protection, taxation, and artwork authenticity, to name a few. The Guidelines focus on
two factors that are especially important in relation to NFTs. These are – on the project level –copyright terms and – on the infrastructure level – the details of ownership transfer.

Legal Factor 1: Are there copyright terms and conditions associated with the NFT?
Even though precedents of legal debate over the commercial use of NFTs are scarce, they arelikely to occur in the future. As such, NFT investors should be aware of what rights the y
theoretically get upon buying an NFT, as this determines their level of “ownership” and, in turn,the degree of freedom they have when using an NFT.
Table 13 gives a first overview of various common and observable designs with regards to therights attached to NFTs.
Table 13: NFT copyright options

Right
Commercial right
Personal use
No T&C

Description
Owners can use the content of the NFT tomake a profit
Only personal use of the NFT content isallowed
No T&C or legally erroneous T&C

Quality Score
A
C
E

Data collection: Terms and Conditions can usually be found on the project’s website or on its
mint page.

Legal Factor 2: How is ownership of the underlying asset/artwork transferred?
While some NFTs are artworks themselves, others serve to represent ownership of anunderlying asset, such as real estate, property rights, etc. From a legal standpoint, NFT trans ferdoes not always automatically result in the transfer of ownership of the underlying asset.
While it should be clear that if the NFT represents a piece of real estate, then the transfer ofownership has to be recorded in the land registry. However, also with purely digital NFTs suchas collector items where the NFT is the object to be transferred, from a legal perspective it has
to be specified how the copyright ownership is transferred when the NFT changes hands.
Table 14 gives an overview of potential designs and how they can be evaluated.
Table 14: NFT ownership transfer options

Ownership right

Description

Additional agreement
neededOwnership is linked to and transferred with
the NFT token according to an explicit
statement by the issuer
Ownership is transferred with a separate
agreement/through an intermediary

No transfer

Ownership transfer not specified

Transferred with NFT

Quality Score
A

C
E

Data collection: Ownership transfer conditions are usually specified in the Terms andConditions agreement, which can usually be found on the project’s website or on its mint page.

20/32

4.4 ESG Factors
Environmental, social, and governance factors include the environmental impact of theblockchain an NFT is issued on, the governance practices of the project, and the structure of
the project’s team.

ESG Factor 1: What are the community relations within the project?
The success of NFT collections, especially the ones that represent digital art, to a great extent
depends on how involved the community is in the project. Vivid and adequately managed social
communities help create media attention, which in turn attracts more people t o thecommunity, thus driving a positive feedback loop.
Community relations include, among others, the attitude of the team toward its community,
prevention of discrimination, bullying, harassment , and other violations on its social media
channels, and transparency of the team regarding the project developments and updates.
Failure to adequately communicate the status of the project and ignorance of concerns raisedby the community members can undermine the trust of the community, making it an easiertarget for FUD (fear-uncertainty-doubt) dissemination by malicious actors.
Table 15 gives an indication of how to evaluate community relationships within the project.
Table 15: Community relations within the projectCommunity Relations

Description

Ethical, well-managed,
concerns addressed in atimely manner, updates
are communicatedregularly

The project’s team supervises all the communication
channels, promptly bans violators, responds toconcerns, and regularly hosts AMA (Ask Me Anything)sessions

Ethical, well-managed,
concerns addressed in atimely mannerLong response times,
poor moderation
Non-existent

Project’s team supervises the social media channels
and responds to questions, but lacks proactivity
when it comes to updates and live communication
with the community
Rules violators take a long time to be blocked,
questions take days to respond with some left
unanswered
Social media channels are not moderated

Quality
Score

A

C

D
E

Data collection: The most important social network for project updates for the majority of NFT
collections is X (formerly known as Twitter). The most common tool s used to stay in touch withthe existing community are Discord and Telegram.

5 Evaluation Example – Mocaverse
To illustrate the use of the Guidelines, gives an example for the application of the Guidelines.
For demonstrative purposes the framework is used to analyze an NFT from the Mocaverse
collection. 9

5.1 Background Information
Company background
Mocaverse is “the membership NFT collection for Animoca Brands’ extraordinary family ofcompanies, projects, investments, shareholders, and partners.” 10 NFTs from the Mocaverse
collection are referred to as the Mocas, and they allow their holder to “Learn, Play, Do Good,and Build together”, with additional utility added over time by Animoca Brands’ communities.
Animoca Brands is a Hong Kong-based company that specializes in blockchain gaming and NFT 11.
The company invested in over 400 Web3 startups since its inception in 2014 and released anumber of games, including The Sandbox and Phantom Galaxies 12.
Collection data:
General information on the Mocaverse collection is aggregated in Table 16: Mocaverse NFT
collection general information
Table 16: Mocaverse NFT collection general information

Blockchain platform

Ethereum

Total supply

8,888

Release date

March 6, 2023

Standard

ERC-721

Smart contract address

0x59325733eb952a92e069C87F0A6168b29E80627f

Project website

https://mocaverse.xyz/

Project X (Twitter)

https://twitter.com/MocaverseNFT

9

Authors and Contributors to the Guidelines are not in any way affiliated with the Mocaverse project,
do not advertise or endorse it, and use the project solely to showcase the potential of the Guidelines.
The results of the analysis are relevant for a limited time only given the dynamic nature of the NFT
industry.
10
https://www.mocaverse.xyz/
11
https://www.forbes.com/sites/zinnialee/2022/07/12/animoca -brands-hits-59-billion-valuation-ascrypto-winter-deepens/
12
https://www.animocabrands.com/mission-and-vision
22/32

5.2 Criteria Based Evaluation
In following subsections, the Mocaverse collection will be analyzed using the criteria outlined
in Section 3. Looking into the various aspects of the Guidelines, the analysis leads to a better
understanding of the quality of the Mocaverse NFT.

5.2.1 Economic Factors
Economic Factor 1: How economically efficient is the underlying blockchain?
Mocaverse is based on the Ethereum blockchain.
Indicators:•

Level and stability of transaction fees:
Ethereum is known for its exorbitant transaction fees, which get even higher when the
network is put under a heavy load. ETH price increase makes transactions eve n more
expensive, and NFT sale fees can at times exceed 500 USD 13.

•

Block time:
On Ethereum, block time fluctuates at around 12 seconds 14.

Based on indicators used for the economic efficiency evaluation of Ethereum, Mocaverse getsan “E” (Table 17: Economic efficiency evaluation (Mocaverse)):Table 17: Economic efficiency evaluation (Mocaverse)

Block time, seconds<$1 consistently
Transactionfee (simple
transfer)<$1 with rare
spikes of $1-$10
Consistently<$10>$10 at times or
consistently

<1

1-10

10-60

> 60

A

A

B

C

A

B

C

D

B

C

D

E

C

D

E

E

Economic Factor 2: How liquid is the market for the collection?
Indicators:•

Number of sales over the last 30 days relative to the total collection supply:
According to Blur.io, which aggregates trades across the major marketplaces, during theperiod from 23.01.2024 to 21.02.2024 240 sales took place 15. As such, the proportion ofsales to the total supply is approximately 2.7%.

13

https://www.lcx.com/understanding-nft-gas-fees/
Ibid.
15
https://blur.io/collection/mocaverse
14•

Bid-ask spread:
The floor price of the collection is at 4.18 ETH, while the highest bid is equal to 3.88,
which is the equivalent of a 7.7% spread. The data is from Blur.io 16.

According to Table 18: Liquidity rating (Mocaverse), the Mocaverse collection gets an “A” forliquidity.
Table 18: Liquidity rating (Mocaverse)

Bid-ask spread

Number ofsales
over 30 days(% of supply)<10%

10% - 20%

20% - 50%

> 50%

<2%

A

A

B

C

2% - 5%

A

B

C

D

5% - 15%

B

C

D

E

> 15%

C

D

E

E

Economic Factor 3: What is the traction of the collection?
Indicators:•

Share of NFTs sold below the floor price:
As per Blur.io 17, over the last 30 days (23.01.2024 - 21.02.2024), 103 sales took place
below the floor price, so the proportion of sales at bid prices is close to 43%.

•

Sales-to-listing ratio over the last 30 days:
Over 500 listing took place in between 23.01.2024 - 21.02.2024, so the sales-to-listingratio is below 0.5

According to Table 19: Collection traction rating (Mocaverse), the Mocaverse collection gets a“D” for traction according to the combination of factors considered.
Table 19: Collection traction rating (Mocaverse)

Sales-to-listings ratio (over 30 days)

Share of
NFTs soldbelow thefloor (at
bids)

16
17

>1.5

1 – 1.5

0.7 - 1

<0.7

<30%

A

A

B

C

30% - 50%

A

B

C

D

50% - 70%

B

C

D

E

> 70%

C

D

E

E

Ibid.
Ibid.
24/32

Economic Factor 4: How active are NFT collection holders in the Web3 space?
Etherscan 18 and Dune Analytics 19 dashboard served as the primary information sources for thisfactor.
Indicators:•

Among holders of the collection, there are several notable NFT investors, including
investor A 20, who holds several Bored Apes Yacht Club, Azuki, and Moonbirds NFTs,
investor B 21, holding Pudgy Penguins, Memeland, and Wrapped Cryptopunks.

•

The collection has over 2000 holders, and most of the holders own only 1 NFT, so theownership is rather distributed. At the same time, there are several “core” investors,
who hold more than 10 NFTs from the collection. Additionally, these were collected overtime via market transactions and not back-and-forth transfers.

Based on the holder profile, the Mocaverse collection can be granted an “A”, which is reflected
in Table 20: NFT collection ownership structure (Mocaverse).
Table 20: NFT collection ownership structure (Mocaverse)

Holders
Active NFT investors
Active independent
wallets
Independent, not-soactive wallets
Few transactions,concentrated ownership
No transfer history,
concentrated ownership

Description

Quality Score

Holder wallets also have blue chip NFT
collections, transfers are numerous
Holders are active in the crypto space;wallets are not linked
NFTs are spread across many wallets
that are new or not very active
Few owners control most of the supply
and transact mostly with each other
Very few transfers, one wallet controls
most of the NFTs

A
B
C
D
E

Economic Factor 5: Is there a roadmap for the project?
Just like many other NFT projects, Mocaverse does not reveal all the plans at once and primarily
relies on teasers, such as the one posted on their official X (ex. Twitter) account in early 2023 22,
which included a reference to a crypto token that was officially announced almost a year later 23.

18

https://etherscan.io/token/0x59325733eb952a92e069c87f0a6168b29e 80627f
https://dune.com/tomwanhh/mocaverse
20
https://etherscan.io/address/0x9Ff5b690CE21EDcae135648f7ADB26c20f73 0761
21
https://etherscan.io/address/0xe5442ae87e0fef3f7cc43e507adf786c311a0529
22
https://twitter.com/MocaverseNFT/status/1636019863281074178/photo/1
23
https://twitter.com/MOCAFoundation/status/1750520430639894623
19

Since its release in March 2023, the Mocaverse team collaborated with other projects from theAnimoca Brands umbrella, launched Moca ID 24, and engaged in numerous online and offline
events.
Overall, the project stuck to announced events and releases, even though the notice period for
updates was rather short. As such, the project earns a “B” for its roadmap, which is reflected
in Table 21: Project roadmap evaluation (Mocaverse).
Table 21: Project roadmap evaluation (Mocaverse)

Roadmap
Complete
Timeline is notfollowed
Has no timeline
Has no milestones
No roadmap

Description

Quality Score

The roadmap is complete, and all
deadlines have been met so far
Some of the milestones on theroadmap were reached with a delay
Contains milestones for the project
without any ETAs
Only describes a broad vision for the
project
No future development of thecollection is planned

A
B
C
D
E

5.2.2 Technical Factors

Technical Factor 1: How reliable is the underlying blockchain?
Indicators:•

Market capitalization:
As of 05/03/2024, Ethereum has a market capitalization of over 400 billion USD.

•

Downtime:
Ethereum never went down completely as its consensus mechanism prioritizes liveness.
However, it is worth pointing out that Ethereum stopped finalizing blocks twice in May
2023, with the second period lasting for approximately an hour 25.

According to the indicators, Mocaverse earns an “A” when it comes to the stability of its
blockchain (Table 22: Blockchain reliability evaluation (Mocaverse)).

24

https://twitter.com/MocaverseNFT/status/1702204409881735208
https://thedefiant.io/ethereum-researchers-remain-mystified-after-blockchain-briefly-fails-tofinalize
25

26/32

Table 22: Blockchain reliability evaluation (Mocaverse)

Downtime, minutes over the preceding year

Marketcapitalization,
billion USD

0<60 (planned
maintenance)>60 (planned
maintenance)or <60(outage)

>50

A

A

B

C

10 - 50

A

B

C

D

1 - 10

B

C

D

E

<1

C

D

E

E

>60 (outage)

Technical Factor 2: Is the source code of the NFT available and audited?
The source code is available and verified for both the proxy and the underlying smart contracts
on Etherscan 26. The code of the contract is not audited, and an audit is only available for the
project’s Discord channel 27.
According to Table 23: Source code reliability (Mocaverse), the Mocaverse project gets a “C”
for its source code reliability.
Table 23: Source code reliability (Mocaverse)

Source code

Description

Quality Score

Verified andauditedVerified and audited by an established audit firm

A

VerifiedNot available/not
verified

Source code is verified, but no audit/audit from an
unknown firm was conducted
The source code is unavailable or its
correspondence with the machine code cannot bereadily verified

C

E

Technical Factor 3: Is the NFT source code immutable?
Since the collection’s code is upgradable and features roles that can amend certain functionsof the contract, it is mutable. There are several addresses and each one can amend the content
of the contract independently from the others.
Therefore, Table 24: Source code immutability scores the immutability quality criterion for the
Mocaverse NFT collection at “E”.

26
27

https://etherscan.io/token/0x59325733eb952a92e069c87f0a6168b29e80627f#code
https://twitter.com/MocaverseNFT/status/1617030660652236800

Table 24: Source code immutability (Mocaverse)

Contract
Mutability
Immutable

Mutable by thecommunity
Mutable by asingle entity

Description

Quality Score

Set during minting (can potentially be inefficient for
NFTs with high circulation)
Several addresses are qualified to suggest changes toa Smart Contract, but the changes are only passed if
the predetermined number of addresses votes forthem
Changeable at any time by the owner/one of theowners of the smart contract

A

C

E

Technical Factor 4: Does the project’s code incorporate common libraries?
Mocaverse project utilizes libraries developed by OpenZeppelin, Chiru Labs, the authors of
Azuki and 721A contract, and Thirdweb studio, which produces open-source software used by
Gala Games and Rarible, among others 28.
Mocaverse NFTs are compatible with the ERC-721 standard 29, so the collection gets an “A” forthe use of standards and common libraries in Table 25: Standard compatibility and use of open
libraries:
Table 25: Standard compatibility and use of open libraries (Mocaverse)

Base URI
Standard compatible,
open libraries used

Standard compatible,
limited use of libraries
Standard incompatible

Description

Quality Score

Smart contract fully compatible with anestablished token standard and is based on
established open libraries
Standard compatible, but either outdated
and less secure libraries are used, or
certain non-standard functions are
implemented but not audited
The standard of the NFT is not defined

A

C

E

Technical Factor 5: Where is the NFT metadata stored?
The artwork of each NFT from the collection is stored off -chain using a decentralized data
storing protocol (IPFS) 30, which earns it an “A” for storing security in Table 26: NFT artwork
storage options (Mocaverse).

28

https://etherscan.io/token/0x59325733eb952a92e069c87f0a6168b29e80627f#code
Ibid.
30
https://etherscan.io/nft/0x59325733eb952a92e069c87f0a6168b29e80627f/4308
29

28/32

Table 26: NFT artwork storage options (Mocaverse)

Location

Description

Quality Score

IPFS

Address immutable, file 'undeletable'(unless unpinned when consideredabandoned)A

On an NFT portal (e.g.,
OpenSea)

URL fixed, but not under control

C

In a Cloud storage

Dependent on Cloud, immutable URL

D

HTTP(S) on a webserver

The file can be modified at any timeE

5.2.3 Legal Factors
The License Agreement is the source for the consideration of the legal factors in relation to the
Mocaverse NFT collection 31.
Legal Factor 1: Are there copyright terms and conditions associated with the NFT?
According to the License Agreement, “provided that you have acquired Your Mocaver se NFT
lawfully, the Creator hereby grants to you during the Term (as defined below) a non -exclusive,
non-transferrable, sublicensable, universe-wide, royalty-free licence to use the Licensed NFT
Artwork in any and all formats and media, by any and all tec hnologies and means of delivery,
for any and all purposes whatsoever, including the commercialization.“
The licence comes with a range of limitations, including, but not limited to:•„If your commercial use of the Licence would result in you, or any third p arty acting on
your behalf, earning more than US$ 1 million or its equivalent in gross revenue from any
source in any twelve (12) month period directly or indirectly, you must (i) notify theCreator whenever you are presented with any other opportunities t o exploit the Licensed
NFT Artwork in the same twelve (12) month calendar period; and (ii) obtain writtenconsent from the Creator to pursue such opportunities.”•„… while the Licence allows you to create and exploit the Derivative Works, the Licencedoes not grant you rights in any individual element (such as the features, attributes,
properties, or traits) of Your Mocaverse NFT or the Licensed NFT Artwork or a licence toexploit any individual element separate and apart from Your Mocaverse NFT.“•“The Licence does not grant you any rights to use the business name of “Mocaverse” or
any other business name of the Creator and its affiliates, all of which are exclusively
reserved to the Creator and its affiliates”.

The licence is also valid only if the set creator fee of 5% was paid upon purchase.
Table 27: NFT copyright options (Mocaverse) assigns an “A” score to the Mocaverse collection
on the copyright options.

31

https://github.com/MocaverseNFT/license/blob/main/license_1.0.0.md

Table 27: NFT copyright options (Mocaverse)

Right
Commercial right
Personal use
No T&C

Description

Quality Score

Owners can use the content of the NFT tomake a profit
Only personal use of the NFT content isallowedAC

No T&C or legally erroneous T&C

E

Legal Factor 2: How ownership of the underlying asset/artwork is transferred?
As per the Licence Agreement, „Except as expressly provided herein, ownership of a Mocaverse
NFT and the Licence are not separable in any way”.
In addition, “by entering into this Agreement, the Creator hereby releases you from all liability
and obligations and irrevocably waives its right to make a claim against you in respect of any
infringement of Creator Brand IP Rights in respect of the Licensed NFT Artwork, subject to thefollowing conditions:
1. your use of the Licensed NFT Artwork must not have breached any term of this Agreement.
In other words, the Creator will treat you as if you entered into this Agreement upon you legallyacquiring Your Mocaverse NFT; and[h][i]2. the Creator’s release and waiver shall only apply in respect of the pe riod commencing
from the date you acquire Your Mocaverse NFT lawfully and ending immediately upon yourtransfer of Your Mocaverse NFT to another person”.
As such, the Mocaverse NFT collection gets an “A” for ownership transfer conditions, which isreflected in Table 28: NFT ownership transfer options (Mocaverse).
Table 28: NFT ownership transfer options (Mocaverse)

Ownership right

Description

Additional agreement
neededOwnership is linked to and transferred with
the NFT token according to an explicit
statement by the issuer
Ownership is transferred with a separate
agreement/through an intermediary

No transfer

Ownership transfer not specified

Transferred with NFT

30/32

Quality Score
ACE

5.2.4 ESG Factors
ESG Factor 1: What are the community relations within the project?
The Mocaverse collection has a dedicated website and social media accounts on all the mostprominent platforms, including X (ex. Twitter), Discord, and Medium 32.
The account of Mocaverse on X has over 300,000 subscribers and project updates are regularly
posted there alongside stats and recaps. The team warns page visitors of potential scams andregularly hosts AMA (Ask Me Anything) sessions.
When it comes to Discord, it is up to date, contains recaps from AMA sessions, and the channels
are adequately moderated to prevent spam and bullying. The support team promptly reacts totickets submitted and has clearly specified rules on the server.
Based on the evidence mentioned above, the project gets an “A” as its community score ( Table
29: NFT project community (Mocaverse)).
Table 29: NFT project community (Mocaverse)

Community Relations

Description

Ethical, well-managed,
concerns addressed in atimely manner, updates
are communicatedregularly

The project’s team supervises all the communication
channels, promptly bans violators, responds toconcerns, and regularly hosts AMA (Ask Me Anything)sessions

Ethical, well-managed,
concerns addressed in atimely mannerLong response times,
poor moderation
Non-existent32

https://link3.to/moca

Project’s team supervises the social media channels
and responds to questions, but lacks proactivity
when it comes to updates and live communication
with the community
Rules violators take a long time to be blocked,
questions take days to respond with some left
unanswered
Social media channels are not moderated

Quality
Score

A

C

D
E

5.3 Evaluation Results
The results of the evaluation procedure are summarized in Table 30: Overview of selected
quality criteria (Mocaverse). As can be seen from the table, the analysis of various aspects
covered by the Guidelines leads to a differentiated view on the Mocaverse collection and helps
to gain a more nuanced understanding of the quality of Mocaverse.
Table 30: Overview of selected quality criteria (Mocaverse)
Focus

Level

Topic

Analysisof

Criterion

EconomInfrastruct

How

ic

ure

efficient

Notes

Score
(A-E)

economicallyistheEconomic efficiency reflects the costs and speed ofon-chain NFT transactions.

E

underlying blockchain?
InfrastructHowliquidure

market

is

for

the

Liquidity measures how easily a position can be soldtheand is a key factor for risk management.

A

collection?
Infrastruct

What is the traction of

The traction of the collection reveals whether it isure

the collection?

increasingor

decreasingin

popularity,

and,

D

subsequently, in price.
Infrastruct

How active are NFT

Interest from sophisticated NFT investors signals theure

collection holders inhigh potential of the collection and attracts new

the Web3 space?

members to the community.

Is there a roadmap for

The roadmap shows the development plan of thethe project?

project and is thus of prime importance for its future.

Project
Technic

Infrastruct

How reliable is the

Reliability measures how stable the blockchain runs,

al

ure

underlying blockchain?

how well it is protected against various types of

A

B

A

attacks, and how established it is on the market.
Project

Project

Is the source code of

Source code availability is necessary to verify thethe NFT available andauthenticity of the collection and to check the code

audited?

for potential bugs.

Is the NFT source code

Immutable code cannot be changed after being

immutable?

deployed on a blockchain, which increases securityCE

at the cost of flexibility.
Project

Does

the

code

project’s

Common libraries offer greater efficiency, security,

incorporate

and interoperability. Moreover, they make auditing

common libraries?
Infrastruct

Where

is

the

ure

metadata stored?

Athe code much easier.
NFT

Metadata (e.g., audio, video, text, etc.) is an
essential part of virtually ev ery NFT, and its safety isAof prime importance for an user.
Legal

ProjectAre

copyright

Copyright T&C restricts the holder of an NFT when it

terms and conditions

therecomes to various use case scenarios. Copyrightassociatedviolations might result in a lawsuit.

with

the

A

NFT?
Infrastruct

How is ownership of

Copyright does not automatically get transferred

ure

the

with the underlying NFT, meaning that explicit

underlying

asset/artwork

copyright transfer terms are required.

A

transferred?
ESG

Project

What

arecommunitytheCommunity relations show the efforts of the team torelationsbuild a strong community that promotes inclusivity,

within the project?

equality, and mutual respect, and supports the
project.

32/32

A