HEXA, one of Japan's largest NFT marketplaces, is introducing general payments in ETH and MATIC, ERC20 tokens on the Polygon chain. NFT issuers can now sell NFTs for ETH or MATIC, and NFT holders can resell NFTs for ETH or MATIC.
After consulting with lawyers, HEXA handles payments as described below under Japanese law (because general users can freely issue NFTs).
When the issuer sells in ETH or MATIC
If the issuer makes the primary sale in ETH or MATIC, buyers can also buy only with ETH or MATIC. Buyers can resell not only for ETH or MATIC but also for Japanese yen. Royalties on resales are paid in the crypto used at the time of issuance, so the issuer receives them in ETH or MATIC. This means that even if an NFT issued in ETH or MATIC is traded on the secondary market in Japanese yen and generates a royalty, the issuer can receive it in ETH or MATIC rather than Japanese yen.
When the issuer sells in Japanese yen
If the issuer makes the primary sale in Japanese yen, buyers can also buy only with Japanese yen. Buyers can resell not only for Japanese yen but also for ETH or MATIC. Royalties on resales are paid in the fiat currency used at the time of issuance, so the issuer receives them in Japanese yen. This means that even if an NFT issued in Japanese yen is traded on the secondary market in ETH or MATIC and generates a royalty, the issuer can receive it in Japanese yen rather than ETH or MATIC.
How to make a primary issuance in ETH or MATIC
To make a primary issuance in ETH or MATIC, you first need a Polygon chain wallet (you can create one with a wallet app such as MetaMask). Exchange accounts are not supported. You must also select “Crypto Earnings” from My Page → Rewards in advance and register your prefecture, name and wallet.
Wallet registration is completed by signing with a browser-compatible wallet app such as MetaMask, following the on-screen instructions. If you have not done this, you cannot sell in ETH or MATIC.
Primary issuance in ETH or MATIC
Primary issuance (sale) in ETH or MATIC is possible by selecting “Sell for Crypto” (you cannot apply for issuance unless your wallet is linked from My Page → Rewards). Only lottery sales (fixed price) and auction sales are available; if you want a first-come, first-served sale, choose a lottery sale and set the maximum number of reservations to 1.
How to buy with ETH or MATIC
When you win a lottery sale or win an auction, go to the payment page from the payment email or the notifications at the top of My Page and complete the payment.
Payment is made by following the on-screen instructions to approve the token and submit a transaction to the transfer contract. The payment transaction can succeed only once (this is controlled by the contract, so if you try to pay a second time, the transaction will not go through and you will only incur gas fees). Once the transaction succeeds, the purchase is finalized after waiting for confirmations over several blocks on the blockchain. After the transaction is complete, please wait a while for blockchain confirmation.
Reselling NFTs for ETH and MATIC
To resell for ETH or MATIC, you first need a wallet app such as MetaMask. Exchange accounts are not supported. You must also select “Crypto Earnings” from My Page → Rewards in advance and register your prefecture, name and wallet.
Wallet registration is completed by signing with a web-compatible wallet app such as MetaMask. If you have not done this, you cannot sell for ETH or MATIC.
Once your wallet is linked, select “Sell for Crypto” from My Page → Owned NFTs → Sell to resell for ETH or MATIC by lottery sale (for first-come, first-served, set the maximum number of people to 1) or by auction. You can also resell NFTs whose primary issuance was in Japanese yen for ETH or MATIC. In that case, royalties are paid to the issuer in the currency of the primary issuance, while the reseller is paid in ETH or MATIC.
Purchase offers in ETH and MATIC
You can also make purchase offers in ETH or MATIC. If the person receiving the offer has not linked, or does not have, a Polygon chain wallet, they will need to link one in order to accept a purchase offer in ETH or MATIC and resell.
When ETH and MATIC earnings are paid
Currently, earnings are finalized every Tuesday at 23:59 and sent to your registered wallet during the day every Wednesday. Payments are currently made once a week, but we plan to shorten the interval for crypto in the future.