Hey guys, my name is Linda, and I’m Head of Artists Relations at KodaDot.
I would like to discuss the topic that has been bothering me (us) for some time now. We recently implemented Asset Hub to KodaDot - both Kusama and Polkadot. But in this post, I would like to focus on Asset Hub Polkadot - specifically on deposits one has to place if he wants to create a collection.
At the moment, we have deposits (locking your DOT) on the Asset Hub Polkadot chain for creating collections and adding NFTs into it. This deposit needs to be made when you create a new collection. Your (deposited) DOTs will be unlocked as soon as you burn NFT/collection). Any collection/nft added on the Asset Hub is saved into the blockchain storage. This storage is replicated, and every change is tracked (by transactions). To prevent spam, Parity proposed a returnable fixed deposit. Find more info about deposits in the Polkadot wiki.
For artists who want to mint on Polkadot Asset Hub, this means:
- Collection deposit - 10 DOT
- NFT deposit - 0.01 DOT
My concern is the Collection deposit: 10 DOT (when 1 DOT is around 4 USD, this means 40 USD for collection creation). As a person who is in daily touch with artists, I had to explain this numerous times to many artists, but still, I don’t find this deposit in accordance with the idea of Polkadot being a cheaper alternative for Ethereum, for example. It’s a topic I have to discuss weekly.
Many artists raised questions like - what will happen if the price of DOT goes higher, maybe 100 USD? Will it mean they will pay 1000 USD for collection creation? Well, theoretically, yes, if no one does anything about this deposit because it’s fixed.
Migrating Kusama NFTs:
Soon Kusama NFTs will be able to migrate to AssetHub - migrating NFTs to Polkadot Asset Hub will also cost 10 Dot to the person who will migrate (if they decide to go on AssetHub Polkadot). This can be demotivating for artists to migrate their precious collections. To some point, KodaDot can support some artists by covering this deposit, but this is not a solution.
Ofc we have a cheaper option: Asset Hub Kusama - where:
Collection deposit is 0.1 KSM (to create your collection)
NFT deposit is 0.001 KSM (adding NFTs)
But the goal is to have more Polkadot NFTs. We want to attract more users not demotivate them. We are not yet there to set deposits high like this.
I would still love to see more artists coming to the Polkadot ecosystem and being able to mint freely where they want without any obstacles. That is why I would love to hear more opinions on this topic and maybe any ideas for a solution (referendum to lower the deposits?). I got plenty of opinions from artists who were a bit disappointed by this fact. I would love to make it easier for them and see more Polkadot collections.
Let’s help make Polkadot NFTs more competitive and open doors for artists coming from outside of the ecosystem.
What do you think about this deposit? What can we change? Do we really need this deposit?
Thank you for your time (and opinion)