Redeemable NFTs

Redeemable NFTs are non-fungible tokens (NFTs) that can be exchanged for physical assets. When a user "redeems" the NFT, they receive the associated item, and the NFT may either be burned (destroyed) or staked.

How Redeemable NFTs Work

1. Minting – The NFT is created and tied to a specific redeemable physical product.

2. Ownership – The NFT can be bought, sold, or traded like any other NFT.

3. Redemption – The owner can claim the associated asset, which may trigger one of the following actions:

   • Burning/Staking – The NFT is destroyed or staked after redemption.

   • Transformation – The NFT changes into another form after being redeemed.

   • Retained Ownership – The NFT remains but is marked as "redeemed."

Why Are Redeemable NFTs Valuable?

• Proof of Authenticity – Helps verify ownership of exclusive or luxury items.

• Scarcity & Exclusivity – Many are limited-edition, making them more desirable.

• Utility Beyond Collectibility – Unlike standard NFTs, they provide real-world value.