This is a part of a multipart document you can find here Metaplex’s Royalty Enforcement (MIP) everything you need to know

If your collection is immutable, you cannot migrate to pNFTs.

<aside> ☝ First off you need to understand the short term implications of migration and long term after that. In short – if you chose to migrate before main protocols are ready, the NFTs in your collection will get “stuck” in those protocols and/or those protocols simply won’t work. For example, if you collection uses staking, the staking program needs to be upgraded before the migration initiated.

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You can check official status, maintained by Metaplex here pNFTs Protocol Adoption Status

Ideally you would need to compile the list of the most uses programs by your holders to make a decision when is it safe to migrate, but more on that below.

For existing collections

• You don’t have to migrate, it’s completely optional. You can keep things as-is if you are satisfied with the status quo.
• You will have 90 days after February 6, 2023 to decide if you want to migrate or not.
• ⚠️ The decision is more nuanced than it seems. The new protocol is not “obviously better” as it comes with a significant set of tradeoffs that you should evaluate very carefully. If top collections migrate it doesn’t mean you should! Every community and project is unique and in the future, we believe that both standards will co-exist depending on their use-cases. There are numerous popular collections that are not going to migrate, we will try to compile reasons for why here.
• ⚠️ Before initiating migration, you would have to make sure that all protocols and wallets that are used / loved by your holders have added support for pNFTs. Such as:
  • marketplaces, wallets, AMMs, lending protocols, staking contracts
  • for example, it’s likely that FoxySwap will not work, have a plan for your community to have an alternative for royalty-enforced safe swaps
  • anything else that transfers, burns or freezes NFTs (for example renting protocols, or NFT lending that keeps NFTs in wallets during loans or ticketing systems that prohibit NFT transfers, etc.)
  • see current status of migration here: pNFTs Protocol Adoption Status
  • to learn what protocols your holders use there will be a tool coming in the next day or two.
• If you would like royalties to be enforced and have control over it, you’d have to migrate your collection.
  • migration happens programmatically
  • you would have to inform your community on that and give them 14 days heads up
  • if everything goes as planned, likely your community doesn’t have to do anything
  • possible scenario is that some un-anticipated things will be broken and some holders will be confused and frustrated and some NFTs will be stuck in contracts that haven’t yet migrated.
• You would have to choose your allow/deny list and chose who can update it:

  • There will be one provided by Metaplex

  • There likely will be a community governed one as well that might overtime replace the one provided by Metaplex.

  • The allow/deny lists can have different authorities who can update them. The list provided by Metaplex and the community governed one will not allow you, the creator, to mutate it. Unless you clone it and start using your own. We describe below tradeoffs of both approaches.

  • Note that if you chose to go with the list provided and governed by Metaplex, it initially gives them full control over allow/deny lists. While we believe they will try their best to act in the ecosystem best interest, it is a very centralized source of power. They would technically be able to decide which protocols are “allowed” and “not allowed” to be used. It will be important to transition ASAP to a more decentralized form of governance for the allow/deny lists.

    <aside> ☝ Good news is that we’ve heard from Metaplex that they DON’T want to be that authority and they want to encourage community to take it over ASAP. It’s a respectable intent and we are working together to create community governed lists. Stay tuned.

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  • ⚠️ if you chose to deviate from defaults - it’s super important to communicate this to your community explaining the thought process.

  • See below section on a more nuanced decisions around allow/deny lists.

  • You can go back and forth between allow/deny lists and between who can update them. So the risk of giving up that control is minimal.

• There is no going back, migration back to normal NFTs is not supported.
• To start upgrade process head out to https://royalties.metaplex.com/ and follow instructions there

For the upcoming collections

You will be able to decide before minting if you would like your collection to be normal NFTs or pNFTs. After the 90-day migration window is done, you will not be able to migrate normal NFTs to pNFTs. Make sure you weigh the decision very carefully and make sure you read above section for existing collections on that.

More on Allow/Deny Lists

Aside from the decision whether to use allow or deny list creators would need to decide who has the authority to manage the allow/deny lists. Metaplex or community governed authority or have it yourself. You can chose to hav control over allow/deny lists or you can delegate that management to others.

On the surface it might sounds like having authority in your own hands is better, but it comes with a significant tradeoffs – lack of automatic updates and inconsistent user experience for your holders. If you chose to manage it yourself, especially if you chose to go with allow list – you would have to actively monitor the space and keep adding and updating the allow list to allow your holders to interact with all new protocols. Now imagine everyone doing this, will they all do a consistently good job?

So to sum up, you’d have to decide: