...By Solomon Thomas for TDPel Media.
Nonfungible tokens (NFTs) have become increasingly popular as digital collectibles, but there is a risk that they may be lost in the blockchain forever if a trader dies without a handover plan in place.
To avoid this, lawyers recommend creating an estate plan that outlines how NFTs should be passed on after death.
According to wealth services lawyer Jaime Herren, creating an estate plan is the best step that NFT owners can take to ensure their assets are passed on to their loved ones or a charity of their choosing.
Herren also advises that executors or trustees should be given instructions to access wallets to ensure that the NFTs are transferred to the intended beneficiaries.
The Risks of Not Having a Plan in Place
If an NFT owner dies without an estate plan, beneficiaries may need to take affirmative actions to receive the tokens. This can be avoided if the right plans are in place.
If an executor or trustee is appointed, they will transfer the NFTs to the beneficiaries.
However, this requires collectors to give the executors or trustees instructions to access their wallets.
Holding blockchain assets in a cold wallet with only a brain key is not recommended, as this can lead to lost fortunes.
Blockchain analytics firm Glassnode estimates that there are about 2.7 million Bitcoin that have not been touched in a decade, which could be either held by disciplined investors or forgotten and lost.
Automating the Transfer of NFTs After Death
There is a possibility of automating the transfer of NFTs to specific wallets after death, but this remains more of a legal issue than a tech issue.
NFT platform Enjin’s chief legal officer, Oscar Franklin Tan, explained that smart contracts are flexible enough to transfer NFTs on the death of the owner.
However, the death still needs to be linked by a trusted third party, such as a lawyer, to verify it.
Until government death certificates become accessible via blockchain oracles, this is necessary to trigger an on-chain transfer.
Setting up smart contracts to automatically transfer NFTs after death is technically feasible, but practical challenges and legal considerations need to be addressed.
After enlisting the help of legal personnel to verify proof of death, it is necessary to set up the smart contract to connect with the legal documents.
The process entails defining beneficiaries in the smart contract code or connecting the smart contract to a different legal document, such as a will, that specifies the desired beneficiaries.
Joining a Blockchain Gaming Guild
Blockchain gaming guilds offer players the opportunity to have fun, make a profit, and create better games.
Guilds are communities of players who come together to pool their resources and collaborate on blockchain-based games.
By joining a guild, players can earn tokens, receive exclusive in-game items, and gain access to a range of other benefits.
Guilds can also help to create better games by providing feedback to developers and sharing ideas with other players.
Players who are interested in joining a blockchain gaming guild should look for a community that shares their interests and has a good reputation within the gaming community.