If you are an avid fan of the cryptocurrency and altcoin markets, chances are you have heard of Rarible. Rarible is said to be the world’s first “community-owned NFT (non-fungible token) marketplace”. Furthermore, Rarible leverages the RARI token – the world’s first governance token in the NFT sector – to power this community-run platform model. By giving token users governance rights, Rarible is borrowing the way DeFi works. Now, it remains to be seen whether the same strategy works well in the NFT space.
Moreover, those who follow the price chart will probably know Rarible as the price of the RARI token has increased by almost 10 times in the past 2 months. As always, strong price movements are not necessarily indicative of crypto projects with a lot of potential.
Hyperbole, FOMO or even outright price manipulation is always something that traders should keep in mind. Furthermore, this article should be considered as a reference only and does not represent any official endorsement of the Rarible platform or the RARI token.
However, if we take a closer look at Rarible, there are several innovative solutions that are attracting investors and we will learn about them below.
What is Rarible?
At its core, Rarible is an NFT platform for securing digital collections secured with blockchain technology. To fully understand what this means, it is necessary to understand the nature of the NFT. Simply put, non-fungible tokens are “unique” in a sense and thus can turn out great when it comes to ownership of a particular asset.
However, Rarible has a significantly more ambitious vision than simply becoming a platform to secure digital artworks and collections using blockchain. This is part of the reason why investors are increasingly buying Rarible’s ERC-20 RARI governance token.
The Moscow-based Rarible platform was founded in early 2020 by Alex Salnikov and Alexei Falin. Basically, Rarible is a digital NTF platform specifically focused on art assets. Specifically, Rarible includes a marketplace that allows users to trade various digital or NFT collections, similar to OpenSea.
Users can also use Rarible to generate – commonly referred to as “minting” non-fungible tokens. This is a big advantage for content creators. For example, an artist can sell their work, such as a book, music album, or movie as an NFT.
Alternatively, artists can choose to offer buyers previews of their assets – in the form of previews, trailers, or snippets – but only release the full assets once an NFT buyer is involved. .
Most notably, Rarible is also focusing on creating a fully autonomous platform that operates through a community governance model. Furthermore, Rarible is now moving aggressively to become a Decentralized Autonomous Organization (DAO).
The goal of a true DAO is that the users of the platform will be responsible for all decisions for the platform – which means that Rarible’s RARI governance token is crucial.
What is NFT?
Those who follow the crypto space will know that DeFi and NFT are the hottest terms right now.
NFT stands for “non-fungible token”, which refers to unique tokens that are verifiable against each other. Since these digital tokens are completely unique, they are not even one bit similar. Therefore, one NFT cannot be swapped for another. Instead, NFTs can effectively signal ownership, since they are not interchangeable.
Perhaps the most popular application of NFT is as a representation of digital property rights. Furthermore, you may already be familiar with NFT even without knowing the technical terminology or how it works.
One of the most famous examples of NFTs in action is CryptoKitties. CryptoKitties is the hugely popular Ethereum blockchain game that allows users to buy, sell, and raise digital “cats”. However, one of the core fundamentals of CryptoKitties is that all cats are unique and their ownership is clearly verified using blockchain technology.
However, beyond virtual cats, the technology is also perfectly suited for digital artwork, valuable gaming items, or crypto collectibles.
In a word, the NFT – for example built using the ERC-721 system – puts an end to the ability to reproduce assets online. This could theoretically help determine ownership for both physical and digital assets, as well as intellectual property. Scarcity is a fundamental mechanism for valuing something and as such NFTs can be essential for digital assets.
Furthermore, the NFT industry is expected to grow massively in the coming years. Therefore, an efficient NFT market like Rarible is almost required for further growth.
RARI – Tokens Rarible’s administration
On July 15, 2020, Rarible published an article on Medium detailing the new RARI token. According to Rarible, RARI or $RARI is “the first governance token in the NFT space”.
Distribution rate of the total supply of RARI
In addition, the total supply of RARI is set at 25,000,000 tokens. Moreover, this number is divided in such a way that 10% goes to the airdrop (of which 2% belongs to Rarible users and 8% belongs to all NFT holders), 30% will go to Rarible investors and team , the remaining 60% is accessible through market exploitation.
At this point, you may be wondering what market mining is. Bitcoin mining is something we’ve discussed a lot, but market mining — or “market liquidity mining” as Rarible calls it — is a completely different concept.
In essence, tapping into market liquidity is about incentivizing active participation on the Rarible platform. Thus, users can earn RARI tokens through buying or selling on the Rarible marketplace platform.
Every week, Rarible distributes 75,000 RARI tokens to its users, which are expected to be distributed during the first 4 years of the exchange’s operation. These 75,000 RARIs are distributed to users every Sunday.
Distribution rate 75,000 RARI weekly
Furthermore, sellers and buyers split the distributed tokens equally, as weekly sellers receive 50% of the 75,000 RARI and weekly buyers receive the remaining 50% of the 75,000 RARI. Thus, market liquidity mining can be understood as users “mining” RARI simply by selling or buying on the platform.
In turn, the RARI token provides holders with different rights. This is a fundamental part of Rarible’s plan to create a fully decentralized autonomous organization (DAO). RARI holders can vote on decisions to upgrade the system on the platform, submit proposals related to platform development and create featured artworks or moderate the platform manager.
What is Community Governance?
Rarible wants to transition to a truly decentralized autonomous organization (DAO), driven by the RARI governance token and based on community governance, but what does true community governance entail?
Traditional community governance is the concept of a group, organization or community that jointly decide on policies and strategies. In short, this means that the community will lead, decide for itself and govern itself without relying on outside interference or any other entity.
Therefore, in a crypto or blockchain environment, the meaning of “crypto community governance” is relatively simple. In essence, community governance requires that the project itself determine its own future.
For Rarible, this means that Rarible users – or more precisely RARI holders – will be the ones helping to shape the future of the project, as well as the platform. However, “community governance” is always easier said than done. It is really difficult to unify such a vision.
However, Rarible is laying the groundwork to become a truly decentralized autonomous organization under community governance. While there is still a lot of work to be done before this becomes a reality, Rarible is working hard to find solutions.
Perhaps most notably, the RARI token is a governance token. This means that token holders as a “community” will be able to have a say in policy or strategic decisions for Rarible.
Furthermore, the fact that Rarible mainly rewards active users with RARI – loyal users who earn tokens – it makes sense that those people in the community could be the ultimate actors in decision making and voting. , e.g. system upgrade. So in summary, the RARI governance token shows that Rarible has been thinking about implementing community governance.
Why Rarible Hso ot so?
The talk about Rarible has never cooled down in the past few weeks. So, what is the reason for the sudden passionate interest or simply why is Rarible so “hot”? There are several reasons why Rarible is suddenly getting more attention.
One of them is that Rarible secured funding from New York-based blockchain investment firm CoinFund around September 10. This investment is supposed to help Rarible develop its blockchain-based NFT marketplace platform.
More, Rarible also supports yNFT, NFT-based insurance from yEarn Finance’s “yInsure Finance” or insurance founded by Nexus Mutual. Beyond that, Rarible has no shortage of other ideas that could soon be implemented.
For example, Rarible’s research team introduced the NFT market index. This index can allow users to track and potentially invest in the most valuable collectibles. According to Rarible founder Alexander Salnikov, this will be a way for users or investors to bet on the entire NFT market.
Alexander Salnikov – WOMENRarible’s founder
Additionally, Rarible is working on a new set of functionalities, like social media features, mobile app support, various content types, and possibly even support for partial ownership . Furthermore, the RARI distribution mechanism also incentivizes people to list NFTs on the Rarible platform.
Summary about Rarible
As such, it’s clear that Rarible offers a lot of potential. Not only does it bring a supposedly unique feature set to the market, but it is also an exciting platform in the rapidly growing NFT market. Furthermore, for the NFT market to continue to grow, market solutions like Rarible are essential.
In addition, Rarible can also provide some interesting things about community governance. The RARI governance token is also historic, as it was the first governance token of the NFT sector.
It remains to be seen whether this model that once worked so well in the DeFi space will fit into the NFT industry. CoinFund’s recent investment in Rarible could be an effective stepping stone.
Furthermore, Rarible has also received rave reviews for its relatively simple and intuitive user interface. Users describe the process of connecting a wallet on the Rarible platform (with MetaMask, Wallet-Connect, Fortmatic and WalletLink support) as easy.
Also, Rarible’s connection to Yearn Finance’s yInsure initiative is another promising aspect, as Yearn Finance has been one of the hottest names in DeFi lately. Some observers even predict this partnership could create a “bridge between the NFT and DeFi communities.”
All in all, Rarible seems to be a project worth keeping an eye on. After the ‘carp turned dragon’ time series of the DeFi sector, NFT could be the next subset of the crypto industry to go big.
According to Ivanontech
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