How to redeem an NFT from an index fund?
In this tutorial, we will go through the entire process of redeeming a random NFT (like a CryptoPunk) from one of the NFTX Index funds on NFTX.org.
If you have a single-fund index token that you want to use to redeem an NFT from the underlying fund, you can use the instructions below.
The guidelines below describe how to redeem a PUNK-BASIC token for the underlying CryptoPunk token, but this same process can be applied to any of the D1 single-fund tokens.
If you hold a PUNK-BASIC token and want to take out an NFT from the fund holdings to include the underlying CryptoPunks NFT in your collection or list the NFT on OpenSea, follow the process below.
Connect your wallet to use the NFTX redemption function.
In the top right-hand corner of the page, you will see the Connect Account button.
When you click this button, you will be prompted to connect using either a MetaMask or Frame wallet. Connect your wallet to proceed with the rest of the steps below.
Select the [...] button next to the PUNK-BASIC fund from the homepage.
You will see three options: Mint, Redeem, or Inspect.
You can redeem an NFT from the index token right on the homepage, or you can select Inspect to review the information for that specific fund in more detail.
When you are ready to Redeem a random CryptoPunk from the Punk-Basic fund by burning your PUNK-BASIC token, select Redeem.
A pop-out window will appear on the right-hand side of the page and there will be a prompt to insert the number of PUNK-BASIC tokens that you want to use for redemption.
When you enter the number of tokens you want to redeem in the field, you will be prompted to approve the transaction. If you are using multiple PUNK-BASIC tokens to redeem NFTs, you can select the Approve All button at the bottom of the page. Doing this will approve all the tokens at once and save you on gas for the txn fee.
After the approval transaction is complete, you are ready to redeem your NFT(s).
Click Redeem PUNK-BASIC to complete the final txn in the redemption process.
Once complete, you will see the “Redemption was successful” message and the Token ID for your random CryptoPunk that was redeemed from the fund holdings.
You have now successfully redeemed an NFT from your single-fund index token and withdrawn the underlying asset.