What the fungible is an NFT?

What the fungible is an NFT?

Oct 13, 2023

And what’s the point of paying for a jpeg that you could download for free? Read on for our beginner's guide to what are NFTs, and, more importantly, what’s in it for you if you collect your own.

A non-fungible token (NFT) is a web3 term coined to represent a digital object (for example, a piece of art, animation, or voice memo) that is uniquely coded and immortalized on immutable blockchain technology, so its whereabouts, authenticity, and ownership are forever known and verified. NFTs can be sold and traded, but they can never be duplicated, substituted, or subdivided, meaning the NFT retains its value as an original.

In real-world terms, it’s as if Leonardo da Vinci painted five exact copies of the Mona Lisa and distributed each one, registered and signed, to five separate parties. Now each of these parties owns a legitimate version of the Mona Lisa. Let’s say one of these original versions gets passed down to you. Even if print copies are made and sold, nobody could pass off a print as an original Mona Lisa — that’s where ‘non-fungible’ comes in, meaning that your piece (or ‘token’) is unique and distinguishable.

Umoja aims to reap the benefits of blockchain technology to revolutionize the NFT space for good. With the help of Dasom Ministries Orphanage, our partner in Uganda, we have created a 200-piece collection of original NFT artworks that will be available for purchase on November 28 for Giving Tuesday. Each unique artwork will have only 30 copies up for grabs, available at an accessible yet impactful entry point of $100 USD.

Every piece in our collection was imagined by one of the individuals who reside at Dasom, and then, through the power of artificial intelligence, generated with a distinct style into a set of cohesive digital artworks. Proceeds from Umoja’s charity NFT sales are then routed back to Dasom for continuous access to resources, education, and expansion efforts like starting a farm and building a bigger home.

But Umoja’s model of support doesn’t stop at sales. Since NFTs are collectibles that are commonly traded, each time one of our NFTs is resold, Umoja receives 7% royalties to fund our ongoing efforts. Each and every ongoing transaction goes back to those we support and building a stronger Umoja. So, yes, we encourage you to sell your Umoja NFTs (and buy on the second market) — in the world of NFTs, there’s no offense taken.

Umoja’s charity NFT collection mints November 28 for Giving Tuesday, exclusively on Rarible.