# Fair NFT launch

The following describes the process of fair-launching NFT collections.

Suppose that we want to sell a collection of 10000 RMRK avatars, each of which may contain one to five child NFTs as equipped items.

The ideal approach, catering to both token flippers and collectors, seems to be as follows.

An ERC20 smart contract pool is created with a ratio specificed of tokens per NFT. While the NFTs are unrevealed (as supported natively by RMRK), they are deposited into this pool for a period of "sale". The contract can contain early access whitelists that reference other conditions, like burning a special NFT from another collection.

Suppose the ratio that was decided on is 100:1, meaning a single NFT generates 100 whole ERC20 tokens, let's call them NERCs.

Thus, for 10000 unrevealed NFTs, the pool has generated 1000000 (one million) tokens.

From here on out, the tokens are mostly regular ERC20 tokens, capable of being listed on any DEX or launch platform. Ideally, they would be sold on something Copperlaunch-like which allows token price discovery on a curve during the public IDO. This allows anyone exposure.

Because these tokens now represent fractional trading during the unrevealed phase, they would traditionally miss out on royalties. For that reason, the tokens have one notable difference from regular ERC20 tokens: a fee is built into every transfer.

> Suppose the token contract is C, and royalty contract (vault) R, and A represents any outside potential token holder - EOA or contract. Then, a fee is taken and sent into a R from every transfer NOT including A or R.

This means:

- the tokens are freely integratable into any DEX but a manual slippage adjustment is necessary
- the tokens have much higher liquidity
- both collectors and flippers can participate
- getting a whole NFT requires only getting 100 tokens and sending them into C, which will send back a RANDOM NFT from the pool. Alternatively, a function can be developed to allow a user to pick a specific serial number they care about.

After the sale period has elapsed, the tokens are rendered worthless. The unsold NFTs still in the pool are kept by the team / sale organizer, and the tokens left in people's wallets are a gambling mechanism that has no purpose. Alternatively, they can be made to burn on transfer, effectively destroying all of everyone's balances.