Liquid NFTs: FAQ

The new Liquid NFT primitive was cooked up in-house by the TradePort Team. We understand that creating something brand new comes with a lot of community questions. This FAQ is designed to address some of the most common questions you might have surrounding the protocol.

👉 If you’re looking for a full overview of Liquid NFTs before diving into the details, check out our recent blog.

How are Liquid NFTs different from 404 NFTs?

• Never burned: Unlike 404 NFTs, Liquid NFTs are never burned or destroyed. They fully preserve your NFT and its traits.
• Rarity counts: Each NFT mints fungible tokens based on its rarity score, unlike 404 NFTs, where each NFT had the same value.
• Bridge back and forth: NFTs and fungible tokens can be exchanged at any point via the bridge, as opposed to the 404 standard, where each NFT is burned.
• Rewards built in: NFT holders and liquidity providers can earn from trading fees, rather than relying on speculation.

Can I also trade Liquid NFT collections like normal?

Yes. All the usual marketplace features, such as buying, selling, bidding, and listing NFTs, remain fully available. Liquid NFTs simply add another layer of flexibility with token trading.

What reward mechanisms are in place?

There are two main ways to earn:

• Holding NFTs: No staking necessary. Just hold the NFTs in your wallet and earn!
• Liquidity Providers (LPs): Earn swap fees by providing liquidity on DEXs.

Both share in the trading fees generated by the market.

Does each NFT held earn the same amount of rewards?

No. Rewards for holding NFTs are skewed by rarity. The more rare the NFT, the more rewards you will earn.

Do artists earn royalties when NFTs are swapped for fungible tokens?

Creators continue to earn royalties when their NFTs are bought or sold traditionally. When NFTs are swapped through the bridge, artists can also earn by participating as liquidity providers.

How can I see the amount of fungible tokens allocated to my NFT?

Simply view your NFT details in the bridge interface. The rarity-based token allocation is displayed there before you add your NFT to the bridge. You can also view it in the NFT details view.

Are Liquid NFT contracts audited?

Yes. Audits were completed in the summer of 2025 to ensure all contracts are secure.

Will the valuation of the NFT in terms of fungible tokens ever change?

The allocation of tokens your NFT receives is fixed by rarity and won’t change. However, the market price of those tokens can fluctuate based on trading activity.

What is the “bridge”?

The bridge is a smart contract that allows you to swap NFTs and fungible tokens back and forth. NFTs locked in the bridge are never destroyed — they remain safe and continue to accumulate rewards. At any point, anyone can swap fungible tokens for any NFT in the bridge.

Is the Liquid NFT token the same as a meme coin?

Teams with existing meme coins that participate in liquid NFTs will generally create a new fungible token in partnership with TradePort for the mechanics to work. Teams can also build extra utilities on top of the token if they choose.

Can I trade the liquidity token on a DEX?

Absolutely. The fungible tokens minted by Liquid NFTs are fully tradable on decentralized exchanges that index them.

If my project already has a fungible token, will the Liquid NFT token interfere with it?

Liquid NFT tokens are tied directly to the NFT collection, not to your project’s ecosystem token. In fact, the fees earned can even be used to support your existing token or community initiatives.

Can existing NFT collections use Liquid NFTs?

Yes! Liquid NFTs can be integrated into both new and previously minted collections on Sui.

Is this only available on Sui?

Liquid NFTs are launching first on Sui, with plans to expand to other chains in the future.

Who should I contact if I’m interested in creating a Liquid NFT collection?

Reach out to the TradePort team via Discord ticket or Twitter DM. We’d love to help bring your collection into the Liquid NFT ecosystem.