Segments

Definition: Distinct, sovereign NFDs that can be minted off root NFDs, adding an additional level that is separated by a “.”

Minting a Segment

Minimum contract version 1.16, see Lock or Unlock Contract

The Basics

Roots 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.

Click on 'unlocked' to navigate to the Segments settings page

On the Segments settings page you can lock / unlock your NFD

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.

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 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.

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