Instagram plans to launch several tools related to nonfungible tokens (NFTs) that will enable creators to produce, display, and exchange NFTs.
Meta, Instagram’s parent company, announced at Creator Week 2022 on November 2 that its creators would be able to make and sell “digital collectibles” on and off the platform. Meta has chosen the Polygon blockchain as its initial partner to provide creators with an “end-to-end toolkit” for developing, displaying, and selling NFTs on the platform.
Meta announced support for the Solana blockchain and the Phantom wallet in addition to Ethereum, Flow, and Polygon. A “small group” of American creators will be able to beta test the new features, and the rollout to other countries will follow. However, no time frame was given for the rollout. There will be many more NFTs supported, including videos, and metadata like names and descriptions will be fetched from the OpenSea NFT marketplace to categorize better and label these assets.
According to Stephane Kasriel, Meta’s head of commerce and financial technology, Meta will not charge fees to create or sell NFTs until 2024, and Meta will cover buyers’ blockchain gas fees “at launch,” though he did not specify when that would be.
Kasriel said that “app store fees” would still apply to transactions involving NFTs, despite the widespread criticism of Apple’s 30% commission on NFT sales being more expensive than the average 2.5% commission enforced by NFT marketplaces like OpenSea.
Since Apple and Google only permit in-app purchases using fiat currencies, and both forbid buttons, external links, or other actions that give users a way to circumvent their commissions, this effectively prevents users from purchasing Instagram NFTs using cryptocurrency through the Instagram app.
It appears that buyers won’t be able to purchase Instagram NFTs with crypto through the Instagram app because Apple and Google only allow in-app purchases using fiat currencies and forbid buttons, external links, or other actions that give users a way to circumvent their commissions.
It’s unclear how much of a commission it intends to take from NFT sales or what its creator royalties system will entail; it’s also unclear whether it will follow recent calls from NFT marketplaces to switch to opt-in royalty models.
NFT Today contacted Meta for comment on its structure but has not received a response.
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