NFTs, Investing, Crypto Marketing, Tokenomics

What Goes on Behind the Scenes When a 10k Generative NFT Set Reduces Its Supply?

How this move affects art, rares, and perception.

Photo by Marga Santoso on Unsplash

Man, I’ve been on so many NFT drop teams now. What a crazy-wild ride this whole NFT space is! One of the insider discussions I’ve been privileged enough to be in on, on numerous drops over time, is the conversation about reducing supply during a mint. For the record, it’s usually not the drop owners who bring this up for discussion; it’s actually impatient token holders — or, if you really want to hone in on it, it’s the NFT flippers.

So, let’s chat about this a bit, just to establish what we’re talking about, and then I’ll let you know what typically happens on the art side, as reducing a generative NFT drop’s supply isn’t as easy as simply changing a smart contract variable from 10,000 to something much lower.

First of all, what does it mean to reduce the supply?

Okay, this one’s simple: It just means that your initial offering of, say, 10,000 available NFTs will be reduced to some lower figure — typically a lot lower.

Why is this done?

  • Tokenomics (economics + tokens), ostensibly. The…