NFT stands for non-fungible token. A “token” is simply a tradeable digital item on a blockchain. Such tokens can be either fungible or non-fungible, which refers to how they’re exchanged. If a token is fungible, it means its value is fixed to the value of other tokens, e.g. banknotes (cryptocurrencies like Bitcoin and Ether are “fungible tokens”). When a token is non-fungible, it means that it has its own unique value, such as a painting, sculpture, or a digital artwork.

A digital artwork can be “minted” (see What is minting?) on the blockchain to create a non-fungible token. This NFT is unique, verifiable, tradable, and programmable, which enables it to serve as a digital certificate of true ownership. Note that, although typically used to refer to a digital artwork or collectible, NFTs can also be used to verify the transfer and ownership of physical objects too.

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.

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.

Minting is the process of writing a digital object to the blockchain. It enables creators and collectors to prove the scarcity of their digital objects and verify ownership.

Gas fees refer to the transaction and processing fees that must be paid to the “miners” who facilitate transactions. These fees fluctuate depending on the number of available miners and the concurrent demand 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 hidden gas fees, it’s possible to cap the maximum amount of “gas” you are willing to spend before you start bidding. However, note that this can cause transactions to fail if the network requires a higher gas fee at the moment of 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 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.