NFTs are distributed in an open-ended sale by creating sell offers for the NFTs at a fixed rate.
Advantages / Disadvantages
Advantages:
Speed: distributions can be processed relatively fast
Bulk Offers: offers of an identical value can be created for an entire collection
Greater Visibility: offers are active and can be easily viewed on most marketplaces
Payment Flexibility: XRP, IC and free
Disadvantages:
Reserve Requirements: increase with each offer (currently 2 XRP per offer)
Open-ended Recipients: There is no control over who can accept your created offers.
On-Demand Distribution
NFTs offers are created with defined recipients when specific conditions are fulfilled.
Advantages / Disadvantages
Advantages:
Defined recipients: upon fulfilling a condition, recipients are attached an offer
Payment Options: XRP and IC
Payment Account: ability to monitor an external account for fulfillment conditions
Reserve requirements: offers are created as conditions are met rather than all at once
Disadvantages:
Speed: Offers are created as conditions are met so it can take a while to complete
Operational: The distribution needs to be actively running to create offers
Trust: Users are not directly accepting an offer and therefore must trust the NFT issuer to create an offer for the nft after fulfilling the predetermined condition
Communication: Issuers need to directly communicate the required conditions to their potential recipients or provide a form of gateway (like a minting site) to their users to easily fulfill the conditions.
The on-demand distribution method currently supports payments as its primary condition. However, there are ongoing plans to expand its capabilities by incorporating additional options, including checks, escrows, payment channels and others.