NFT stands for Non-Fungible Token, essentially it is just a digital asset whose existence is documented on a blockchain (a digital ledger). NFTs exist on many blockchains but Funko NFTs are based on the WAX Blockchain. While the NFT itself is an entirely digital asset, Funko NFT releases feature both NFTs that are solely digital in nature (meaning it just sits in your digital wallet) as well as NFTs that can be redeemed for a physical Funko Pop.
Digital NFT – Digital asset that you hold in your digital
wallet.
Funko NFTs can be purchased directly from Funko for retail price on their respective release date and once they have sold out they can then be purchased for aftermarket prices on an aftermarket marketplace. The way Funko sells their NFTs is by the pack (like a pack of baseball cards, only digital). There are two pack sizes of Funko NFTS: Standard Packs (that come with 5 NFTS), retail price: $9.99 a pack, and Premium Packs (that come with 15 NFTS), retail price: $29.99 a pack. You can open or sell your packs. When opening a pack you have a chance at pulling an NFT that can be redeemed for a physical pop, the chances of pulling a redeemable are usually under 2%. The cards that are not redeemable still have various rarity and can be sold individually.
While not all Funko NFTs can be redeemed for a physical pop, if you collect one of each required card in a specific Funko NFT Collection you achieve what is called Royalty which will reward you a digital token that can be redeemed for a physical pop once the redemption period begins. Royalty is obtained by collecting one of every Common, Uncommon, Rare, and Epic Digital Pop. Each NFT in a set varies by rarity and this affects the value of that NFT. There are typically 70-100 NFTs needed to complete a royalty set, Uncommon NFTs typically cost around $0.10 to $0.50 cents with epic NFTs typically costing $5-30, each NFT price is different depending on the number of NFTs available and the popularity of that specific NFT collection.
Once you have pulled a redeemable NFT (Grail, Legendary, or Ultra) you will keep it in your wallet until the Redemption Period begins. A snapshot will occur and you will receive a Redemption Token which is still an NFT. You can then visit the Droppp website and redeem your Redemption Token for the Physical Pop, the Redemption Token will then be removed from your wallet and burned (destroyed essentially). Droppp will mail you the Physical Funko Pop in the specified timeframe.
NOTE: Once the Redemption Period begins, the original redeemable NFT (not the Redemption Token) essentially becomes useless as it cannot be redeemed. Only the Redemption Tokens can be redeemed for the Physical Pop. So stay aware, and do not buy anything other than Redemption Tokens after the Redemption Period has begun.
NOTE: Redemption tokens CANNOT be pulled from NFT Packs once the Redemption Period has begun. So there is no point in buying packs once the Redemption Period has begun. Packs will drop exorbitantly in price once the period begins as a result.
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