The Color Series #002 — Color NFTs & Their Utility

9 min readMar 20, 2022

Coloration’s collection of Multi-Chain 9,999 sRGB Color NFTs is changing the way NFTs will be utilized & viewed across the Blockchain & Metaverse space.

In this article we will explaining Colorations’ 9,999 sRGB Color NFTs and the Utility, Value, and Exclusive Access they provide to holders. We’ll be taking an in-depth look at the Coloration Color NFT Collection, Color Analysis, and what utilities & benefits the Coloration Color NFT ecosystem will be bringing to the Web3 space.

For more information on what RGB & sRGB Colors are, please read our previous article here: https://link.medium.com/c4kE8Z5uqob

Choose your Color; Name it, Describe it, Mint it, Earn Royalties

There are 16,777,216 different colors in the sRGB color space, and there will only be 9,999 Color NFTs minted ever across three blockchains; Ethereum Network, Polygon Network, and the Binance Smart Chain. A maximum of 3,333 colors on each network will be minted.

Each Minter chooses their color with hexadecimal precision, names the color NFT, and gives it a Description; each color minted is personalized by it’s minter. Only the Holders of Coloration sRGB Color NFTs can earn Color Royalties via the Coloration Premium Multi-Chain NFT Marketplace (Coloration Market).

A sRGB Color NFT represents a whole new type of art and a new way of viewing & utilizing colors: digital art & colors with utility; Holders of Color NFTs on the Coloration Market will be able to earn many rewards and have lots of incentives to hold and collect Color NFTs, such as:

Be able to earn 1.25% of each transaction from the Coloration NFT Marketplace. (v2)
Be able to earn 2.5% from Color NFT Secondary Sales.
Be airdropped a special companion color NFT after a certain amount of time held, which will be used as an avatar in a future Coloration NFT multiplayer game.
Be eligible for exclusive digital & physical rewards & items , such as physical NFT art respresenting your Color NFT.
Be eligible for exclusive online and IRL events (or tournaments) built for the artists, gamers, and the NFT / Web3 community.
Be entered into monthly lotteries & giveaways
Have the power to vote on what the project does going forward, vote on what charities to donate to, which additions to add to the platform, vote on specific details of development.
And much more!

Each Color NFT is personalized

Unlike the traditional NFT project where a person may recieve an NFT at complete random, when a person mints a Coloration sRGB Color NFT each Color is chosen and personalized by the minter: The Hexadecimal Color Code for the Color is chosen, a Name is given to the Color (completely chosen by the minter), the mint gives the Color NFT a description( if they so wish to do so), and then the color is minted; that NFT is then 1 of only 9,999 to ever exist, and will be able to earn a percentage of Coloration Markets’ transaction fee, earning passive income while also being able to earn physical and digital rewards.

sRGB Color NFT #0001

A Coloration Color NFT is much more than just simply a color a person sees, or a JPEG on a blockchain, but it is an access of opportunity that allows for multiple incentives, value, (and bragging rights), for holders of sRGB Color NFTs.

Pictured Below Is Color NFT #0001. Hex code: #FFFFFF — Pure White

sRGB Color NFTs have 24 colors that are classified as Pure across the three networks; the Pure Colors are auctioned off to the community at the beginning of each batch of Minting on a Network. These Pure sRGB Colors NFTs are ultimately the rarest out of the 9,999 NFTs, and hold a higher value. The 24 Pure Colors are made up of 8 colors on the three networks. The 8 pure colors featured on all three networks are as follows: Pure White, Pure Black, Pure Red, Pure Blue, Pure Green, Pure Yellow, Pure Cyan, & Pure Magenta.

The Utility, Value, & Benefits of Coloration sRGB Color NFTs

Now Let’s go over in-depth the utility, multiple benefits & value that a Coloration NFT will bring to holders.

Color Royalties

Through the Coloration Multi-Chain NFT Marketplace (v2), Holders of Coloration sRGB Color NFTs will be able to earn royalties in cryptocurrency, such as: eth, matic, and bnb, on each transaction on the Coloration Market! Earning passive income as long as they hold onto their Color!

There is a 5.0% fee on transactions on Coloration Market. 1.25% of that 5% fee is distributed to the corresponding color holders of the NFTs sold on that marketplace network. (Ethereum, Polygon, or Binance Smart Chain)

Currently, the total daily volume for NFT exchanges averages currently at over 600 million dollars, and NFT sales volume totalled at $25 billion in 2021, compared to just $94.9 million in 2020.

When an NFT sells on Coloration Market, If you are a holder of a color (hexadecimal color code) associated with an NFT sold, you earn a percentage of that 1.25% transaction fee. The colors in an NFT sold are analyzed and ranked by percentage, the top 5 colors are rewarded the royalties, and it is split by color percentage.

For example:

If an NFT sells on Coloration Market for 1 million dollars, holders of Color NFTs are eligible to be rewarded the split share of 1.25% from the 5% transaction fee, in this example, 1.25% from the 1 million dollar sale would equate to $12,500; this would be split among the 5 Color Holders, according to color percentage.

( $1,000,000×0.0125 = $12,500 )

In the rare chance that the top five colors make up a perfectly even split, (20% x 5) the holders of the top 5 colors would each recieve $2500.

( $12,500 ÷ 5 = $2,500 rewarded to each of the 5 Color NFT holders if each color made up exactly 20% of the NFT sold)

Color Royalty Analysis

Below is a mockup example of what Color NFT holders will see when they use Coloration Market. Holders of Color NFTs will be able to see a different UI only available to Color Holders; when any NFT sells on Coloration Market, exlusive options only viewable to Color NFT holders will be available, such as: the colors the user owns that appear in an NFT sold, the total amount of royalties rewarded to colors you hold, NFTs sale & royalty history related to your Color holdings, sRGB Color Analysis of an NFT sold, and more.

Through our Color Analysis Ranking System, We Extract and analyze all pixels in an image or video and break down the hexadecimal color codes into percentages, we then rank colors from 1 to X (X being the number of colors in an NFT) The top 5 colors (and Holders of Color NFTs) in an image recieve royalties from the NFT sold.

In the event an NFT uses a color that is not available in the Color NFT global palette, the minted colors nearest to the colors used in the NFT, as determined by Euclidean distance (x and y coordinates on the sRGB colorspace grid) will be rewarded the transaction fee share.

After Creating Your Color you can also trade and auction your Color NFT on any other secondary NFT marketplace that operates on Ethereum, Polygon, or Binance Smart Chain.

Airdrops

Color NFT holders will be rewarded a FREE to claim companion character airdrop after a certain amount of time holding their color. Coloration will be airdropping Character Avatars corresponding to the Colors minted, color holders will be eligible to mint a character that corresponds to their sRGB Color which will be used as an avatar and game-pass for future Coloration NFT games. These airdropped companion NFTs will be used as an avatar in a online multiplayer NFT game that will incorporate the sRGB Color NFT Companion NFTs.

Future Airdrops may or may not include Airdrops of a custom Coloration Token, this is a subject to be discussed for voting in the future by the community of 9,999 holders of Color NFTs, after certain roadmap goals are surpassed.

Digital & Physical Event access

A Color NFT is also an event access pass, similar to an event ticket. Since blockchain technology allows for easy ownership tracking, the unique tickets are verifiable to grant entry to different exclusive events from holding a Color NFT. This concept expands to other sectors such as Discord for exclusive channel access, such as the #collectors-channel.

Voting Privilege for Governance

The Coloration Project allows Holders of Color NFTs to work much like a decentralized autonomous organization (DAO) to make certain decisions as a community; Holders are also Voters. If you are holding a sRGB color NFT you are eligible for 1 vote, if you’re holding 3 Color NFTs you are eligible for 3 votes. This gives privilege to people who own a Color NFT. The community, with aligned incentives, can democratically vote on a decision towards certain aspects of the Coloration Project. With 9,999 NFTs available, each holder is eligible to vote on aspects of project development, direction, and fund allocation, such as; charity choices, project designs, UI/UX themes for Coloration Market, project gaming features, project direction, and more.

Physical Items

Coloration Color NFT holders will be eligible to claim customized glass wall art on our website that will show the sRGB Color NFT they own, with name, description, contract details, and a barcode that links to ownership on the blockchain. Owners of Color NFTs will be able to hang their NFTs physically on their walls and admire the art of color — as their virtual Color NFT work for them by earning Royalties from Coloration Market transactions.

More redeemable physical items will become available for Color NFT holders that hold their NFTs for a certain amount of time.

Color NFT Secondary Sales

All Color NFTs have a 5% “artist royalty” for secondary sales, but for Coloration Color NFTs the “artist” is the community, the 5% royalty is split 50/50. With 2.5% of Secondary Sales going to the Coloration DAO community treasury wallet, where funds will be used for giveaways, lotteries, and project development governed by the holders, and the other 2.5% rewarded to Color NFT holders. This means if someone owns a Color NFT and then decides to sell it on Coloration Market or any other NFT Marketplace such as OpenSea or Rarible, when that Color NFT sells, 2.5% of that sale will go to the Coloration DAO Community Treasury wallet, and 2.5% is distributed amongst Color NFT holders.

Color NFT Secondary Sales can be seen two ways: 2.5% Reflections, and 2.5% Project Development and Sustainability governed by the holders of Color NFTs.

Color NFTs Are Multi-Utility

In this article we have gone over the 5 main principle utility functions of Coloration Color NFTs, and this is only the beginning of what Coloration plans on bringing to the NFT & Blockchain space.

Coloration will continue to innovate in the NFT space, and Color NFTs are just the beginning to providing a valuable web3 platform & economy for artists and collectors of digital goods.