NFT stands for non-fungible token. While a "token" by definition is simply a transferable and tradable digital item on a blockchain, it can be either fungible or non-fungible in nature. If a token is non-fungible, it is a unique, indivisible, and irreplaceable digital item stored on a blockchain. An NFT can refer to an artwork linked via a URL in its metadata or in other cases, an artwork can also be stored directly on the blockchain. It can thus represent certain rights over that artwork, specified via an end-user license.

In comparison, a fungible token is divisible, interchangeable, and identical. The most prominent examples of fungible tokens are cryptocurrencies like Bitcoin and Ether.

Yes. All of Mercedes-Benz NXT’s digital objects are blockchain-based non-fungible tokens (NFTs). We generally prefer to use “digital object,” “digital collectible," and “digital artwork” as more specific and approachable terms, however, when using these terms, the objects referred to are always NFTs that reference specific digital artworks or digital collectibles.

A crypto wallet is necessary to exchange blockchain-based tokens, such as cryptocurrencies and digital objects. Despite what the name might suggest, it’s important to note that your crypto wallet doesn’t actually store such tokens. That happens on the token’s native blockchain. For example, if you own any Ether (ETH) cryptocurrency or Mercedes-Benz NXT digital objects, these will be stored on the Ethereum blockchain.

On creating a crypto wallet, you will receive a public key and a private key. The public key is your wallet’s “address”, used by other parties to transfer tokens into it (similar to the IBAN number of a traditional bank account). The private key is used to access your wallet, just like a password. If you are using a non-custodial wallet (see below), you will also receive a seed phrase (or recovery phrase), used to recover your private key should you ever lose it. It goes without saying that you must never reveal your private key or seed phrase to anyone else.

There are two types of crypto wallets: custodial and non-custodial. Custodial wallets are offered by third-party service providers, such as a cryptocurrency exchange. Such services are easy to use and, since the provider also has access to the user’s private key, offer a workaround should the user ever lose it. However, such centralisation effectively outsources trust over your tokens to a third party. Conversely, non-custodial wallets give users complete control, as well as sole responsibility over their private key. However, if the user does happen to misplace or forget their key, they’ll lose their tokens – this means: the user is in charge of keeping both private key and seed phrase safe.

The most common solutions of non-custodial wallets are available as a browser extension and mobile app. It’s also possible to purchase a hardware wallet, which provides an additional layer of security by requiring a sign-in on a hardware device.

To make collecting even smoother and more accessible to all, we have implemented a solution for instant crypto wallet creation through email and social logins via the third-party provider "Thirdweb" as well as credit card payments with support for all major cards processed via third-party provider "Coinflow". The use of "Thirdweb" and "Coinflow" are subject to the partner's own terms & conditions, please refer to our Privacy Policy for further details.

Minting is the process of creating and storing an NFT on the blockchain for the first time. As blockchain records cannot be altered, minting is thus the start of establishing an NFT’s immutable record of ownership and authenticity.

Gas fees describe a fee to cover the cost of processing transactions on the Ethereum blockchain. The amount depends on the complexity and priority of the transaction, as well as the current traffic on the blockchain. A lot of transactions occurring at the same time can cause "crowding," which strains processing capabilities and increases fees.

To avoid being hit by high gas fees, it is possible to cap the maximum amount of "gas" you are willing to spend via your crypto wallet before initiating and confirming a transaction. However, note that this can cause transactions to fail if the network requires a higher gas fee at the moment of the transaction.

Security is a top priority for us and we are committed to protecting collectors from bad actors. However, participants in any blockchain transaction must also take steps to protect themselves. It is important that you:

Understand how blockchains work

Note that your digital objects are neither stored in your crypto wallet, on your computer, or any other hardware device. Instead, they are entries on a peer-to-peer ledger known as a blockchain (in the case of Mercedes-Benz NXT digital objects, the Ethereum blockchain). When you buy or sell something, it doesn’t actually move anywhere, rather the blockchain entry is changed to transfer ownership from one party to another.

Understand how crypto wallets work

When you create a crypto wallet, you will receive a public key and a private key. The public key is your wallet’s “address”, used by other parties to transfer tokens into it (similar to the IBAN number of a traditional bank account). The private key is used to access your wallet, just like a password. If you are using a non-custodial wallet, you will also receive a seed phrase (or recovery phrase), used to recover your private key should you ever lose it. You must never reveal your private key or seed phrase to anyone else.

It is also possible to purchase hardware wallets. These add an extra layer of security by requiring a sign-in on the hardware device itself.

See What is a crypto wallet? for more information.

Learn to recognize common scams and identify bad actors

Unfortunately, there are bad actors out there who will try to deceive collectors in order to steal cryptocurrency and/or other tokens. One of the most common ways of doing this is by posing as official entities in order to solicit transfers or gain personal information that can be used to hack accounts.

No Mercedes-Benz NXT team member or Mercedes-Benz customer care agent will ever contact you directly asking for personal details. Anyone claiming to be should be blocked and reported.

See Will Mercedes-Benz NXT ever contact me directly? for more information.

DYOR: Do your own research

It’s important to do your own research and stay informed if choosing to engage in any blockchain transactions. This Twitter thread from @punk6529 is a frequently recommended resource for learning about protecting your blockchain tokens.

Security is a top priority for us. To stay safe in your interactions with Mercedes-Benz NXT, please keep in mind:

• All mints will be announced on our website and other official channels at least 7 days prior to the mint event. We will never do stealth or surprise mints.
• We will never run unannounced physical or digital giveaways.
• Always take your time to verify the account you’re interacting with (e.g. by checking handles and domains are spelled correctly).
• In the unlikely event that one of our channels becomes compromised, we will alert users through other official channels. For this reason, it is best practice to routinely check multiple official channels rather than rely on just one.

No. As an additional precaution against potential scams, Mercedes-Benz NXT will never offer stealth or surprise mints.

Digital collectibles in the form of NFTs enable Mercedes-Benz to support new strategic dimensions of digital brand and business development and create connections and experiences with new customer groups. Furthermore, Mercedes-Benz’s desire to work with Web3 and build a presence in the NFT space reinforces its ambition to create iconic luxury.

Mercedes-Benz NXT is the brand under which official Mercedes-Benz digital objects are developed, launched, and managed, while 0xNXT as the creative studio is the organization and dedicated legal entity responsible for developing, launching, and managing them.

The formation of Mercedes-Benz NXT and 0xNXT marks a long-term commitment to blockchain-based digital objects, as well as the first time that Mercedes-Benz has actively teamed up with an official partner for their portfolio of digital objects. The scope of Mercedes-Benz NXT spans all of the Mercedes-Benz brands and product portfolio.

Omnicom Group is a leading creative network and long-time creative partner of Mercedes-Benz. Omnicom established a dedicated legal entity and creative studio responsible for the development, launch, and management of all Mercedes-Benz’s official digital objects: 0xNXT.

0xNXT is a dedicated company. For the first time, this structure enables Mercedes-Benz to:

• have an official partner for their digital objects,
• participate in the space for blockchain-based digital objects with a long-term strategy for their portfolio and the resources, and
• authorize this entity to distribute digital objects across different markets globally.

The creative studio 0xNXT currently consists of full-time members @Fellyo, @tediumcrypto, @beyondm3ta, and @Maxorgel3701, as well as various advisors, supporters, and collaborators inside and outside of the Mercedes-Benz Group.

This team is responsible for developing the core collections, the main collections of Mercedes-Benz’s digital artworks and collectibles. Alongside these core collections, there will also be satellite projects and peripheral projects.

In order to provide clarity to current and future collectors, we have devised a framework detailing the differences between Mercedes-Benz NXT blockchain activities and any others developed in partnership with or authorized by the Mercedes-Benz Group (more details here):

• Core collections are planned, developed, and managed by the creative studio 0xNXT and launched directly under the Mercedes-Benz brand. These digital objects are part of a coherent story: interrelated projects that continue to build on each other.
• Satellite projects are standalone activities with a smaller scope and often contrived in partnership with others. These one-time, unique ideas can express creativity more flexibly without having to worry about the consistency of the core collections. Satellite projects focus on fun and experimentation unhindered by long-term plans.
• Peripheral projects are third-party projects that make use of Mercedes-Benz trademarks, whether officially licensed or through fair use. These digital objects are created and distributed independently from Mercedes-Benz, but may sometimes be supported through communication.

Mercedes-Benz NXT digital objects are created as art and collectibles. They should not be purchased with future benefits in mind, but instead be collected for the enjoyment of collecting.

Mercedes-Benz NXT is the home of Mercedes-Benz’s blockchain-based digital objects and 0xNXT is the creative studio responsible. Prior to these entities, Mercedes-Benz was involved in several standalone projects, all of which bear no relationship to Mercedes-Benz NXT‘s activities.

Mercedes-Benz’s previous involvements in digital artworks and collectibles

After a long period of observation and in order to better understand blockchain technology and the community emerging around digital art and collectibles, Mercedes-Benz was involved in several activities to explore the space. These previous activities are completed and were always limited in scope, target group or market.

They were as follows:

What is Nature?

What is Nature? is a digital art project by Korean artist Seunghyo Jang commissioned by Mercedes-Benz Korea and published with the Korean digital art platform XXBlue. Here, the art is the utility and profits were donated to the local art community in Korea. It is not connected to the activities of Mercedes-Benz NXT.

NF-G

The project was realized by the artist collective ART2PEOPLE and the Mercedes-Benz G-Class was the inspiration for the involved artists. It used Mercedes-Benz G-Class vehicle attributes under fair use. Mercedes-Benz covered this on its own channels. The project is not connected to the activities of Mercedes-Benz NXT.

NFTs by the Mercedes-AMG Petronas Formula ONE Team

The Mercedes-AMG PETRONAS Formula ONE Team has released blockchain-based digital objects in the past, which are not connected to the activities of Mercedes-Benz NXT.

We developed a framework to provide clarity to current and future collectors as to what they can expect from Mercedes-Benz.

What is different now?

For the last couple of months, a multi-disciplinary team across several organizations has worked full-time on what resulted in a company dedicated to continuously building and fostering the Mercedes-Benz roadmap and ecosystem.

The formation of Mercedes-Benz NXT and 0xNXT marks a commitment to building a dedicated presence within the Web3 community. The scope of Mercedes-Benz NXT spans all of the Mercedes-Benz brands and product portfolio.

0xNXT is a dedicated company. For the first time, this structure enables Mercedes-Benz to:

• have an official partner for their digital objects,
• participate in the space for blockchain-based digital objects with a long-term strategy for their portfolio and the resources, and
• authorize this entity to distribute digital objects across different markets globally.

The creative studio 0xNXT currently consists of full-time members @Fellyo, @tediumcrypto, @beyondm3ta, and @Maxorgel3701, as well as various advisors, supporters, and collaborators inside and outside of the Mercedes-Benz Group.

This team is responsible for developing the core collections, the main collections of Mercedes-Benz’s digital artworks and collectibles. Alongside these core collections, there will also be satellite projects and peripheral projects.

Mercedes-Benz NXT is a long-term project with no set limit on the number of collections to be offered. All releases will be announced with advanced notice and we will never run stealth mints.

Mercedes-Benz NXT digital objects will be minted on the Ethereum blockchain and require Ether (ETH) cryptocurrency to purchase on the primary market.

To purchase a Mercedes-Benz NXT digital object on this website, you can connect to your existing crypto wallet or alternatively create your own crypto wallet instantly with your email address or social logins via the third-party provider "Thirdweb".

We accept cryptocurrency (ETH) and credit card with support for all major cards as payment methods. 

Once you’ve purchased your digital objects, you are free to trade them with other collectors on secondary platforms. Some of these allow payment via credit and/or debit card, as well as ETH.

The mint will be done via a rebate Dutch auction. In contrast to a traditional auction, where the price increases until the highest bidder wins, a Dutch auction begins with a high starting price that decreases until supply is exhausted or a resting price is reached.

In a rebate Dutch auction, all participants pay the same amount for each of their digital objects: the amount for which the last token in the auction was sold or the resting price of the auction, if not sold out. At the end, bidders can claim the difference between what they paid and the last selling price via our website. Shortly after the auction ends, a dedicated claim module will appear for this purpose.

In a rebate Dutch auction, all participants pay the same amount for each of their digital objects: the amount for which the last token in the auction was sold or the resting price of the auction, if not sold out. At the end, bidders can claim the difference between what they paid and the last selling price via our website. Shortly after the auction ends, a dedicated claim module will appear for this purpose.

The crypto wallet provided by "Thirdweb" enables a frictionless onboarding and collecting process and while they provide an actual crypto wallet (see "What is a crypto wallet?"), their service adds an additional layer of user-friendliness. You can interact with any items purchased through this provider via Thirdweb's own interface.

To interact with your digital objects in that crypto wallet, such as transferring them, you can export the wallet’s private key and import it to a wallet service provider like MetaMask. To export, please use this link (log in, then select "manage wallet" and "export private key"): https://mercedesbenznxt.wallet.getmojito.com/

Please note that this might require advanced knowledge and you will also need sufficient funds in cryptocurrency to do that. For more information, visit the MetaMask help center: https://support.metamask.io/

Yes. The service provided by the wallet provider "Thirdweb" and implemented on our website is the creation of an actual crypto wallet, but in a frictionless process that looks and feels like a traditional account setup.

Currently, this is not possible. You can export your private key and use it with another wallet service provider though (see "How do I interact with any items purchased through the service of third-party wallet provider "Thirdweb"?").