Tokenize Solana Domain Names & Marketplaces

Picture this, an NFT with the added advantage of a domain name’s use cases, ready to be listed on an array of marketplaces of your choice. We have made some innovative changes to .sol domain names to tighten our partnerships with marketplaces and enhance the resale ability for our users. As of recently, you can wrap (tokenize) your domain name for it to function like an NFT.

These NFTs come with one clear advantage: listings on multiple secondary marketplaces. With this innovation, we have managed to secure marketplaces for NFT .sol domain names on the platforms, FTX NFTs, Solanart, Solsea, Digital Eyes, Alpha Art, Hyperspace & Burnt Finance!

To list your NFT, you would simply have to tokenize your domain name on Bonfida’s site and choose your favourite marketplace!

Even though ownership of a domain name equals ownership of an NFT, there are some important processes and differences to be noted. Let’s have a look.

How to wrap a .sol domain name as an NFT

Domain names can be wrapped as NFTs and unwrapped at any time. Once wrapped, the domain name will act like an NFT. In the meantime, the domain name will be sent to an escrow account, until the user decides to redeem it.

When the NFT is unwrapped again, the program will burn the NFT and return the domain name to the owner of the NFT. Users can wrap and unwrap their domain names a limitless number of times.

Note: Tokenization of domain names is not supported by Phantom Wallet. Presently, they do not support the use of partially signed transactions required for tokenizing NFTs.

Wrapping your domain name as an NFT is as simple as clicking a button on Bonfida’s UI. See the picture below. If the user has clicked “Wrap” and paid the gas fees — the domain name will now be an NFT.

Wrapped domain names can be found under “Tokenized Domains (NFT)”

To unwrap your NFT and therefore redeem your domain name, you can follow the same process and select “Unwrap”.

What is the difference between domain names and the tokenized NFT version?

Please note that NFT domain names do not have all the functions of the actual domain name. Both versions can be used to send & receive funds, be transferred freely between users, and resold. Content of the NFT version, however, CANNOT be edited. Users would have to redeem their domain name, by unwrapping their NFT, to be able to do this.

Transferring funds to .sol domain names vs domain name NFT

Transacting with your domain name will continue as usual, that is, sending funds to “something.sol” will lead it to directly go to the wallet address linked to it.

Whilst your domain name is wrapped and thus in its NFT state, users can still send funds to your domain name. Depending on the wallet you use, things may work a little differently.

Overall, updated wallets would direct the funds sent to your NFT domain directly to your wallet address.

An example for updated wallets:

Bob is the owner of the tokenized domain “something.sol”
While the domain is tokenized, someone sends funds to “something.sol”
The funds will directly be sent to Bob’s wallet address, i.e. the one that owns the NFT/domain name

However, if wallets aren’t updated, funds sent to “something.sol” may go to the escrow account, where domain names are held until they are redeemed. Users are able to withdraw the funds sent to the escrow account on Bonfida’s website.

The owner of the funds sent to the escrow account is determined as follows:

If the domain is tokenized: the current holder of the NFT can withdraw the funds
If the NFT has been redeemed i.e. not tokenized anymore: the last person who redeemed the NFT can withdraw the funds

So, in a scenario:

Bob is the owner of the tokenized domain “something.sol”
Whilst the domain is tokenized, someone sends funds to “something.sol” and it goes to the escrow account
Bob can withdraw these funds at anytime by selecting “Unwrap” and then “Withdraw Funds”
Let’s say Bob does not withdraw the funds and lists his NFT for sale on a marketplace
Alice buys the NFT “something.sol”
Alice is now the owner of the NFT and thus the domain name “something.sol”
Alice can withdraw the funds

NB: If funds are sent to the escrow account and the owner does not withdraw the funds before selling the NFT/domain, the new owner of the NFT/domain will be able to do so. Thus, failing to withdraw all the funds from the escrow account before selling your NFT/domain, would result in a loss of funds.

Closing Statement

It’s super exciting to broaden our marketplaces for .sol domain names and further penetrate the Solana ecosystem.

We are stoked to be tightening partnerships with NFT marketplaces and enhancing the resale ability for our users. A special thanks to our partners FTX NFT, Solanart, Solsea, Alpha Art, Digital Eyes, Hyperspace and Burnt Finance for helping us make this happen.

Until next time, be safe and take care!

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None of the above is financial advice.

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