> For the complete documentation index, see [llms.txt](https://docs.nf.domains/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.nf.domains/nfd-docs/guides/manage-nfds/segments.md).

# Segments

{% embed url="<https://youtu.be/dCvoaqknx5Y?t=231&si=2NunfZv3LFwO1GEa>" %}
Minting a Segment
{% endembed %}

{% hint style="info" %}
Minimum contract version 1.16, see [Lock or Unlock Contract](/nfd-docs/guides/manage-nfds/upgrade-smart-contract.md)
{% endhint %}

### The Basics

[Roots ](https://docs.nf.domains/nfd-docs/guides/manage-nfds/pages/sNEoqRfWTpPIZF9CtMxH#what-is-a-root-vs.-a-segment)can mint an unlimited number of segments, but segments cannot mint other segments.

Root NFDs have two segmenting states, locked & unlocked. This defines who is allowed to mint segments.

Example : nfd.algo (Root) -> can then create pooof.nfd.algo (segment off nfd.algo)

### Locked vs. Unlocked

When you have a root NFD segmenting will be locked by default. This means that only you as the owner of the root can mint segments off the NFD. If you want to open your NFD so that anyone can mint a segment navigate to the 'Edit' Segments tab. There you are able to unlock your NFD and set a sale price.

<figure><img src="/files/ZMXcJxvd7iEFfLLponjL" alt=""><figcaption><p>Click on 'unlocked' to navigate to the Segments settings page </p></figcaption></figure>

<figure><img src="/files/f4o64F8MatuuTushuFDg" alt=""><figcaption><p>On the Segments settings page you can lock / unlock your NFD</p></figcaption></figure>

You can also keep it locked, mint some segments for yourself, and then unlock it for others to mint. The root owner has control over whether the NFD is locked or unlocked to segmenting, but if unlocked and segments get minted, the owner of the root will have NO control over those segments.

If the NFD is locked and the owner mints the segments themselves, they will have full control over the segments and can transfer them or sell them if they wish. Resale of minted segments will have the same 5% commission enforced.

### Costs

There are two costs associated with minting a segment, the Platform Fee & the [Carry Cost](/nfd-docs/fundamentals/faq.md#what-is-carry-cost).&#x20;

If you're minting a segment off a root you don't own, you will likely also pay a premium set by the root owner.

The **platform fee** will be **$4**, or **25%** of the sales price, whichever is greater. The platform fee scales down as more segments get minted. See Fee Tiers below.

The [**carry cost**](/nfd-docs/fundamentals/faq.md#what-is-carry-cost) for an NFD is always 5 ALGO and paid by whoever mints the NFD.

For open segments, the owner of the root gets to set the price for segmenting and keeps a portion of the proceeds from segment sales.&#x20;

To understand how the $4 or 25% Platform Fee breaks down, see an example below.

Example:

| Segment Sale Price (USD) | Platform Fee (USD) | Owner Proceeds (USD) |
| ------------------------ | ------------------ | -------------------- |
| 15                       | 4                  | 11                   |
| 16                       | 4                  | 12                   |
| 17                       | 4.25               | 12.75                |
| 18                       | 4.50               | 13.50                |

### Fee Tiers (only for self minted segments)

The more segments that get minted from a root, the cheaper the platform fee per segment becomes. This is to account for large projects & organizations that plan to utilize segments. This only works when the segments are minted by the owner of the root.

| Number Minted | Discount Rate | Price (USD) |
| ------------- | ------------- | ----------- |
|               |               | 4           |
| 10            | 20%           | 3.20        |
| 100           | 30%           | 2.80        |
| 1,000         | 40%           | 2.40        |
| 10,000        | 50%           | 2.00        |
| 100,000       | 60%           | 1.60        |
| 1,000,000     | 70%           | 1.20        |


---

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