Reimagining what a decentralised NFT marketplace should look like starts by considering NFT creators. They are the driving force, and it’s up to them to design and create unique IPs by which the entire industry is measured by.

While current marketplaces provide a heavy, albeit necessary emphasis on the trading experience, a decentralised AMM (Automated Market Maker)-based NFT marketplace offers more independence and control to the creator.

Follow along with our insights and thoughts about how an NFT AMM can change the landscape.

Existing problems for NFT creators

To identify solutions, one must understand the problems that NFT creators are facing today.

1. High/Inconsistent transaction fees: Traditional NFT marketplaces charge high transaction fees that can eat into the profits of NFT creators. Variables fees make it difficult for creators to price their NFTs competitively and can result in lower sales.

2. Lack of ownership: NFT creators often have limited control over the pricing, marketing, and distribution of their work in traditional NFT marketplaces. As a result, NFTs get delisted, undervalued or overlooked and generally negatively impacted, despite the efforts of the creators.

3. Slow transaction times: Some NFT marketplaces can be slow and inefficient, resulting in delayed transactions that frustrate both creators and collectors.

The fully decentralised NFT vending machine

Throughout the FTX crisis, Uniswap has been the stronghold of DeFi, single-handedly carrying the industry on its back while proving the crypto paradigm. To compare existing NFT marketplaces with FTX would be a stretch, however, more importantly, the AMM model that makes Uniswap unique showed its reliability and effectiveness.

While a traditional NFT marketplace can be compared to a traditional auction house where bidders compete to purchase an item by offering higher and higher bids until a final price is reached, an AMM-based NFT marketplace can be compared to a vending machine. The price of the item is fixed, and the buyer can simply insert the required amount of money to purchase it. While the marketplace acts as an intermediary, facilitating the transaction, the AMM acts as a decentralized platform in form of a smart contract.

This allows for the following benefits:

1. Higher earnings: NFT AMMs cut out the need for the middleman, which implies that you earn more per sale. You not only earn through the actual sale but also receive the swap fee that is determined by yourself.

2. Faster transactions: NFT AMMs allow for near-instantaneous transactions. This means your community and collectors can get their hands on your creations as soon as they want them.

3. Access to a broader audience: NFT AMMs are designed to be accessible to everyone. Don’t be at the mercy of massive marketplaces but be enabled to independently create.

4. Automated Pricing: The AMM algorithm whose parameters can be tuned by yourself ensures that your NFTs are priced fairly and competitively.

5. More engagement with your community: With more control, you can more easily engage with your community by designing unique experiences.

The promised land

We are building an AMM-based NFT marketplace with the NFT creators at its core. From PFPs to gaming and music collections, we believe that a decentralised marketplace needs to consider all verticals and do things right.

Talk to us and share your thoughts with us as we are building SeaCows.