Mixed Deck — All NFT Topics Flashcards

Under U.S. copyright law, how long does copyright protection last for a work created by an individual artist today?

Answer: Life of the author plus 70 years

For works created by individuals, U.S. copyright lasts the author's lifetime plus 70 years.

What is a 'custodial' NFT wallet?

Answer: A wallet where a third party (like an exchange) holds the private keys on the user's behalf

A custodial wallet means a third party controls the private keys, meaning they technically have custody of your NFTs, not you.

What is the purpose of the 'token URI' stored in an NFT's smart contract?

Answer: To point to the metadata JSON file describing the NFT

The token URI is a URL or IPFS hash pointing to a JSON metadata file that contains the NFT's name, description, image link, and attributes.

An NFT creator wants to allow collectors to create and sell merchandise (like t-shirts and posters) featuring the NFT art they own, but only up to a certain revenue limit, such as $100,000 per year. What type of license would be most appropriate for this scenario?

Answer: A Limited Commercial Rights license

A Limited Commercial Rights license grants the NFT holder the right to use the artwork for commercial purposes, but with specific restrictions. These restrictions often include a cap on the gross revenue that can be generated from the commercial use of the art, making it the perfect choice for this scenario.

What distinguishes a 'curated' collection on Art Blocks from other tiers?

Answer: It has been selected by Art Blocks' internal curation board for artistic merit and innovation

Art Blocks Curated collections are hand-selected by an internal curation board based on artistic merit, creativity, and innovation, making it the highest-prestige tier on the platform.

A collector purchases an NFT of a famous digital artwork. What rights does the collector typically acquire with this purchase?

Answer: Ownership of the specific token on the blockchain, but not necessarily the intellectual property of the underlying art.

Purchasing an NFT grants ownership of the token itself, which is recorded on the blockchain. However, it does not automatically transfer the copyright or other intellectual property rights of the associated digital file unless explicitly stated in the smart contract's terms. The artist usually retains the copyright.

What is the significance of copyright registration for an NFT artist pursuing infringement litigation in the U.S.?

Answer: It enables the artist to seek statutory damages and attorney's fees

Registration before infringement (or within 3 months of publication) allows the copyright holder to pursue statutory damages up to $150,000 and attorney's fees.

Which term describes artwork whose copyright has expired and is freely usable by anyone?

Answer: Public domain

Public domain works are those whose copyright has expired or was never established, making them free for anyone to use without permission.

What is 'token gating' in the NFT art world?

Answer: Using NFT ownership to control access to exclusive content, events, or communities

Token gating uses NFT ownership as a key to unlock exclusive benefits like private communities, events, content, or services.

What does 'offer' functionality allow buyers to do on NFT marketplaces like OpenSea?

Answer: Propose a purchase price below the listed asking price

The offer feature lets buyers submit bids below the listing price, which sellers can accept, reject, or counter.

How does 'community size and engagement' (e.g., Discord members, Twitter followers) factor into NFT art collection valuation?

Answer: Strong community engagement suggests sustained demand and collector loyalty, supporting higher valuations

An active, engaged community creates organic demand, shared ownership pride, and ongoing promotion that tends to support and elevate collection valuations.

On most NFT marketplaces, what is the typical range for creator royalties on secondary sales?

Answer: 2.5% to 10%

Creator royalties on secondary NFT sales typically range from 2.5% to 10%, with 5-10% being most common for art NFTs.

What is the primary function of a smart contract in the lifecycle of an NFT?

Answer: To define the rules of the NFT, such as ownership and transferability, and automate their execution.

A smart contract is a self-executing contract with the terms of the agreement directly written into code. For an NFT, this code defines its unique properties, governs ownership, and handles transfer and sales logic automatically and without intermediaries.

What does the '30-day volume' statistic on a marketplace indicate about an NFT collection?

Answer: The total value of NFTs traded in that collection over the last 30 days

30-day volume measures total trading activity in ETH or USD over one month, helping assess a collection's ongoing market interest and liquidity.

Which of the following best describes the role of 'trait rarity' in valuing a generative NFT artwork?

Answer: Rarer trait combinations typically command higher prices within a collection

In generative collections, NFTs with statistically rare trait combinations are generally considered more desirable and fetch higher prices.

Which of the following best describes 'on-chain' NFT storage?

Answer: Encoding the artwork and metadata directly into the blockchain itself

On-chain storage encodes the actual artwork data (often as SVG or base64) directly in the smart contract, making it permanent without external dependencies.

Which of the following best describes the role of a license agreement in an NFT sale?

Answer: It defines the specific rights the buyer has to use the underlying artwork.

A license agreement is crucial as it explicitly outlines what rights the NFT buyer receives. By default, no rights are transferred, but a license can grant specific permissions, such as personal use (e.g., as a profile picture) or even broad commercial rights to create merchandise. The license is separate from the token itself and dictates the scope of use for the associated art.

What is 'dynamic NFT' art?

Answer: An NFT whose metadata or appearance can change based on external conditions or on-chain data

Dynamic NFTs (dNFTs) can change their metadata and visual appearance based on real-world data, smart contract conditions, or owner interactions.

Which factor most distinguishes a '1/1' NFT artwork's valuation from that of a generative collection piece?

Answer: 1/1 works are valued primarily on uniqueness and collector demand for that specific piece

A 1/1 (one-of-one) NFT is a single unique artwork, so valuation hinges entirely on desire for that specific piece rather than collection-wide metrics.

What is a 'collection' in NFT terminology when minting art?

Answer: A smart contract grouping multiple related NFTs under one identity

A collection is a smart contract that groups related NFTs together, giving them a shared identity, floor price, and metadata structure on marketplaces.