Technology trends have a unique way of changing our perception of existing systems and processes. If you have been following the NFT market, then you must have heard of Rarible, a platform for creating and trading NFTs. A few years ago, the possibilities for decentralized financial solutions seemed far from reality until blockchain arrived. Today, the world witnessed the rise of many trends such as non-fungible tokens and decentralized finance.
The NFT market has attracted the attention of tech professionals, investors, corporations, and the general public worldwide. The new, innovative class of digital assets has become one of the critical instruments for trading digital collectibles with the assurance of security and transparency. The Rarible NFT marketplace features a broad range of functionalities tailored for modern digital asset creators and artists. Let us learn more about the platform in the following introductory guide.
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Basic Overview of NFTs
Any discussion on ‘how to use Rarible’ would draw emphasis on NFTs. A basic overview of non-fungible tokens can offer the ideal foundation for understanding the NFT minting and marketplace platform. Non-fungible tokens are just tokens that are distinctively unique from one another. You cannot swap one NFT for another as NFTs provide clear proof of ownership. The applications of NFTs in creation of digital collectibles alongside digital art and valuable in-game collectibles have been marking prominent reasons for large-scale adoption of NFTs.
Non-fungible tokens have been considered as one of the milestones in the digital asset landscape by restricting the ability to reproduce digital assets. Considering the impact of scarcity on determining the value of an asset, NFTs can transform the conventional precedents for valuing digital assets. The promising growth rates expected of the NFT industry in future are a clear indication of the need for NFT marketplaces. This is where Rarible pops in! How does it matter in the constantly expanding NFT ecosystem? Let us find out.
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Definition of Rarible
The simplest answer for “what is Rarible” paints it basically as an NFT platform used for creating and trading digital assets developed with blockchain technology. If you have been following the crypto market closely, then you must have heard of Rarible. Another common identity of the platform is that of the world’s first NFT marketplace under community ownership. In addition, the NFT marketplace leverages the Rarible token, RARI, for powering the community-ownership platform model. Most important of all, RARI is also a significant entry as the first governance token in the NFT landscape.
You can notice how the NFT marketplace draws inspiration from DeFi by allocating a token with governance privileges to users. Is this what makes the community-owned NFT marketplace better than other alternatives in the market? The vision of Rarible makes it one of the most groundbreaking NFT marketplaces. Many investors are trying to get their hands on the RARI token. Did the NFT marketplace emerge all of a sudden?
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Background of Rarible
The background of Rarible NFT marketplace is an essential highlight for understanding its foundations comprehensively. The first ideas for the platform gained traction in 2017 before it was launched officially in early 2000. Based in Russia, two developers, Alex Salnikov and Alexei Falin created the world’s first community-ownership NFT marketplace.
The expertise of Alexei Falin as a full stack developer and the financial and market acumen of Alex Salnikov have bolstered the foundations of Rarible. The massive growth in hype around NFTs has been responsible for driving the need for platforms where users can create and manage their NFTs.
Working of Rarible
After a basic overview of the world’s first community-ownership NFT marketplace and its background, you might seek answers for “how to use Rarible” in the best way possible. You can develop a clear impression of the methods for using the NFT marketplace by going through its work. Digital artists and content creators can use the Rarible NFT marketplace for issuing ERC-721 and ERC-1155 standard NFTs.
The NFTs can serve as a representation of the ownership of digital artwork on blockchain. Users need Ethereum tokens and connect their wallets to the Rarible NFT minting service, just like OpenSea. Upon completing the simple prerequisites, users can create their own distinctive NFTs. Interestingly, users don’t need proficiency in coding for issuing NFTs. On top of it, you can sell or trade them publicly on the Rarible platform without any intermediaries. Any individual can create an account on the platform and mint their NFTs and sell them or trade them publicly.
Another important highlight in the working of Rarible refers to royalties. Digital artists and content creators can program their NFTs with royalties to enable future cash flows. Artists and creators can use smart contracts for defining a specific share of future sales of the NFTs.
If you are wondering about “Is Rarible good?” then you need to take a look at the NFT market index. The index depends on the value of the circulating supply of the token. Most important of all, the NFT market index can help in easily tracking and visualizing the performance and development of tokens within the NFT ecosystem.
Investors can use the index to identify suitable NFT art. At the same time, the association of Rarible NFT marketplace with the DeFi ecosystem presents new opportunities for the platform’s future growth. The integration with DeFi can encourage the prospects for issuing the facility of insurance through digital tokens.
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The most crucial aspect in the design of Rarible is the community governance model. The NFT minting platform and marketplace aim at becoming a truly decentralized autonomous organization or DAO with its own governance token. In the community governance model, the Rarible RARI token holders have an active vote in the future of the platform.
With the help of the governance token, community members can exercise their vote in strategies and policy decisions for the platform. DAOs utilize blockchain technology such as smart contracts for ensuring complete decentralization and transparency in a specific project or platform.
The Rarible token is a significant component driving the community-owned NFT marketplace. The DAO can use the governance token for influencing decisions over the projects alongside ensuring incentives for participants. Active users can receive RARI tokens as an instrument for governance. Token collectors and creators can use the RARI token for voting on evolution of the platform and multiple upgrades. As a result, the governance of Rarible depends considerably on the most active users, alongside strengthening its position as a community-owned platform.
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Value of RARI Token
While the Rarible RARI token is crucial for governance of the platform, it also serves a promising purpose in acquiring marketplace users. In addition, the token also serves as a reliable instrument for incentivizing NFT traders in the platform with marketplace liquidity mining.
The platform also offers the functionalities for using RARI tokens to purchase or sell NFTs on Rarible marketplace. Furthermore, the distribution mechanism of RARI token ensures incentives for users listing their NFTs on the platform. However, the primary function of the RARI token would focus solely on empowering platform users with decision-making capabilities.
The Rarible token offers access to many rights, such as allowing community voting rights. RARI token holders can submit proposals and vote on them alongside participating in moderation and curation of the project. As of now, RARI token voting is non-binding and advisory in nature. The Rarible platform takes users’ suggestions into account before making any final implementations.
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What is the Future of RARI Token?
The Rarible NFT marketplace introduced the RARI token in July 2020 as the first governance token in the world of NFTs. In addition, you should take note of the fact that the total supply of RARI tokens is 25,000,000. Interestingly, around 10% of the total supply has been reserved for airdrops and 30% to the investors. The remaining 60% of the total tokens are available only through marketplace mining.
Interestingly, marketplace mining has a huge role in finding ‘how to use Rarible’ albeit with a considerable difference from crypto mining. The concept of marketplace liquidity mining basically focuses on increasing the scope for active participation in the NFT marketplace. Therefore, users can earn RARI tokens by purchasing or selling on the NFT marketplace platform.
The Rarible platform allocates 75,000 RARI tokens every week to users, with the plan for distributing over the first four years of the exchange. Users receive the 75,000 RARI tokens every Sunday and divide the amount evenly between buyers and sellers. Therefore, the Rarible token can serve as a crucial component for the future of marketplace liquidity mining on the NFT marketplace platform.
The proposal of earning governance privileges by selling and buying on an NFT marketplace is definitely appealing. Most important of all, the Rarible RARI token also works for strengthening the platform’s resolve for creating a completely decentralized autonomous organization.
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How Is Rarible Special?
Among the many highlights of Rarible, such as the way it works and the functionalities of its token, you would be wondering about the things which make it special. Well, it is a community-owned NFT marketplace with its own governance token. Quite an interesting highlight for the existing NFT ecosystem, isn’t it? However, you need to move over “what is Rarible” and discover the factors making it special. Why would anyone go for the platform when they have popular choices like OpenSea?
For starters, OpenSea offers cheaper fees on transactions and listings. It allows users to mint NFTs only when you plan on selling them. Therefore, users have to list an NFT before offering their art or digital asset. On the contrary, Rarible requires users to mint NFTs before the sale, thereby validating the higher fee for listing on the platform.
The minting fees are an obvious necessity on both NFT minting platforms. However, you have to pay the minting fees for Rarible NFT marketplace, even for unsold artworks. On the other hand, Rarible provides better flexibility for tracking artwork in comparison to OpenSea. How? Rarible has a smaller and restricted community, thereby implying the presence of few users. Most important of all, you don’t find a governance token in other NFT marketplaces like the Rarible RARI token. As a matter of fact, many industry experts are counting on exceptional growth rates in value of the RARI token in future.
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Concerns of Safety
Safety is one of the prominent factors in determining answers to “Is Rarible good?” especially considering the financial value associated with NFTs. The NFT marketplace helps security of all collectibles with blockchain technology, thereby ensuring authenticity and legitimacy of all users. Interestingly, Rarible requires users to submit authentic backstage photo proof for verifying their authenticity. The platform also pays additional attention to security by imposing the requirement of verifying and linking Twitter accounts of users to the platform. Users can list and buy NFTs on the platform only after verifying and linking their Twitter accounts.
The next prominent highlight pertaining to security on Rarible NFT marketplace is the active identification and blacklisting of suspicious traders. After the notorious delisting incident in 2020 on the grounds of wash trading activities, the platform has strengthened its safeguards for offering a transparent marketplace.
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The final overview regarding Rarible shows that it is a promising intervention in the NFT ecosystem. Almost every piece of news in the world of crypto and blockchain draws some references to non-fungible tokens or NFTs. The new and innovative class of unique assets has been remarkable in changing the definitions of asset ownership on the blockchain.
The Rarible NFT marketplace lets users create and sell NFTs on the platform, which incentivizes users with a governance token for their participation. As the world’s first NFT marketplace with a community governance model and its own governance token, Rarible has introduced productive disruption in the NFT sector. The concept of marketplace liquidity mining, a smaller community, and safety make the NFT marketplace more appealing. Start learning more about Rarible and the best ways to use it.
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*Disclaimer: The article should not be taken as, and is not intended to provide any investment advice. Claims made in this article do not constitute investment advice and should not be taken as such. 101 Blockchains shall not be responsible for any loss sustained by any person who relies on this article. Do your own research!