What is Burn-to-Redeem?
Burn-to-redeem involves a collector burning (i.e. sacrificing) an existing NFT (a "burn token") from their wallet in order to redeem a new NFT (the "redeem token") from a creator. This is an alternative way to receive a creator's new NFT rather than simply paying ETH.
Why do Burn-to-Redeem?
While a burn-to-redeem is not for every collection, there are some benefits to adding one to a collection of your own.
It offers a way to engage collectors with an enjoyable experience over a longer duration or through multiple collections.
It can be a great way to reward early collectors and keep them engaged with your work.
It creates scarcity in the supply of the burnt NFTs collection by reducing their supply.
Check out our guide here to learn more about creating your own burn-to-redeem edition.
Breaking Down Burn-to-Redeem
What is Burning?
To burn an NFT, you must transfer the NFT to an address that no one can access - typically, this is to be done by transferring an NFT to the ETH burn address. Note that burning an NFT is irreversible! Once you burn a token, there is no way to recover it, so that token will no longer be accessible to you.
What is Redeeming?
To redeem an NFT, you must exchange assets to meet certain conditions beyond the standard “pay ETH to mint” model. Once received, they are no different from any other NFT.