Congratulations! You’ve set up your wallet, put ETH in it, and you’ve successfully minted your NFT on Foundation. If you haven’t done any of those things yet, learn how to get a wallet and ETH, and mint an NFT before reading this guide. You’re almost across the finish line.
In this guide, we’ll show you how to set a reserve price, list your NFT for auction, and how to keep the momentum going once it’s live.
What is a reserve price, and where should I set mine?
A reserve price is the minimum amount of ETH you’d be willing to accept for an NFT. Collectors will see this reserve price listed on Foundation and won’t be able to place a bid below it.
There will be a 15% service fee charged to the final sale price of your NFT, so make sure you take that into consideration when setting your reserve.
If you’re listing your first-ever NFT, this will be a great opportunity for price discovery. Check out how other artists are pricing their work on Foundation, and see what feels right for you. Consider starting at a more accessible price point as you work to cultivate a new collector base and develop your market in the NFT space.
How do I list my NFT for auction?
After you’ve set the reserve, click “List your NFT” for auction to continue. Your wallet will prompt you to confirm the transaction and pay the requisite gas fee (if you need a refresher on gas fees, read more here).
To track the status of your transaction, click “View on Etherscan” to see an estimate of how long before it’s confirmed. Etherscan is a useful resource to track all transactions on the Ethereum blockchain. It’s free to use and is one of the many ways Ethereum is making data more open and accessible to all. You’ll see links to view the status of your transactions on Etherscan throughout our site.
Click “View artwork” to see your work live on the site and ready for bidding.
How do auctions work exactly?
NFTs are listed on Foundation in an auction format.
Once the reserve price for a piece is met, a 24-hour countdown is initiated after which the auction will automatically close. For each bid that’s placed within the final 15 minutes of the countdown, the countdown timer will reset back to 15 minutes until no further bids are placed.
This auction format is intended to give a fair shot to all would-be bidders as blockchain-based auctions are a global affair and participants can span multiple time zones. The format also provides assurances to collectors that if the reserve price is met, the piece will in fact be sold.
Where do NFTs live when they’re up for auction?
Now that your NFT is active on Foundation, it will appear on your public profile. Collectors will be able to see all of your active NFTs in one place and bid on them. When an auction is started, your NFT will be transferred from your wallet and held in escrow within Foundation’s smart contract until the auction either concludes with a successful sale or is canceled.
What happens when I start to receive bids?
Collectors can only place bids at or above your reserve price. Once the first bid is placed, a 24-hour timed auction will begin. All subsequent bids will need to exceed the current bid by 10% or 0.1 ETH, whichever of the two is lesser. During this time, you can build excitement for your auction through social media as a way to encourage additional bids.
If a collector places a bid at the reserve price, and there are no additional bids placed, the piece will sell to the first bidder.
All bids will appear in the “History” section of the artwork page. If you included your email address in your profile, you’ll receive an email notifying you about incoming bids and time extensions.
Why did my auction get a time extension?
Any bids placed within the last 15 minutes of an auction will reset the countdown timer back to 15 minutes. Extensions can go on indefinitely until no bids are placed within the last 15 minutes of an auction. The addition of 15-minute extensions give time for each buyer to have their final opportunity to place a bid, and for the artwork to find its true market value.
The countdown section of your artwork page will be automatically updated so that potential bidders are made aware of the time extension.
Scenario #1: I sold an NFT in an auction! What now?
When an auction ends, the winning collector will need to settle the NFT. After they settle it, the work will be added to their collection and the funds (minus the 15% service fee) will be transferred directly to your wallet. If the collector does not settle the NFT, you as the creator also have the option to complete the transaction by paying a gas fee. Again, this is optional if you would like to receive your ETH from the sale quickly.
The artwork page will update with the price it was sold for and who purchased the piece. No new bids can be placed unless the collector lists the piece for auction again in the future.
Scenario #2: My auction is live, but I haven’t received any bids. Is there anything I can do?
If your auction hasn’t gained traction, there are a few things you can do to help give it a boost:
Promote on Twitter: Twitter is the main social media platform used by NFT collectors. We recommend sharing when your NFT has been listed, if any bids have come in, and more about the artwork to build up excitement for your auction. Read our Twitter Playbook for Creators to learn about how you can gain traction for your auctions.
Change the reserve price: You can update the reserve price at any time before the first bid comes in. To do this, go to your profile, select the 3 dots on the piece you wish to change the reserve for, and enter a new reserve price. Changing the reserve price for your NFT incurs a transaction on Ethereum, so you will need to pay the requisite gas fee to update the price.