Non-Fungible Tokens, or NFTs dominated headlines earlier this year as tokenized intellectual property created a digital gold rush fueled by celebrities, artists, and art collectors alike. Though some suggest that the NFT hype is over, these assets will likely be part of the zeitgeist for years to come.
When it comes to digital collectibles, NFT’s provide a tamper-proof record of ownership, liquidity, and the ability to trade on secondary markets, which makes them highly sought-after, even after the hype has died down.
Since the NFT boom at the start of the year, dozens of marketplaces for these tokens have been launched. Rarible is one such marketplace that takes a different approach to the NFT space. Rather than relying on a centralized group of powerbrokers to make decisions, Rarible will be moving to turn its entire marketplace into a decentralized autonomous organization controlled and upheld by tokenholders.
Founded in 2020 by Alex Salnikov and Alexei Falin, Rarible is an NFT platform that allows user to create and trade digital collectibles. Rarible’s streamlined approach to NFT creation allows content creators to monetize art by tokenizing their work. The process is simple:
- Connect ETH wallet to Rarible
- Navigate to create and select whether it’s a single NFT or an NFT with multiple editions
- Upload the piece
- Specify name, description and other features
- Create Item
- The wallet is then used to sign the transaction and to pay for gas.
When creating an NFT, artists can specify other features like royalty structures. When setting a royalty, the original artist will receive a fixed percentage of each subsequent sale of his artwork. The Rarible platform creates a new NFT on the blockchain in the background, including a complete history of ownership and transaction embedded. Like most NFT platforms, Rarible is built on Ethereum, which can occasionally make it expensive for artists to mint their NFT at times of high network congestion.
While Rarible is currently still centralized in its setup, the long-term goal is to create an entirely community-owned marketplace. The Rarible token (RARI) will play a crucial role in putting users in charge of the platform. The maximum supply of RARI is 25 million — no more RARI will ever enter circulation. 10% of supply are used for airdrops, 30% are allocated to investors, and the remaining 60% will be fueling marketplace mining.
The process of leveraging RARI rewards to encourage active participation in the Rarible platform is called Marketplace Liquidity Mining. During the first 4 years of the platform, 75000 RARI will distributed equally amongst buyers and sellers on a weekly basis.
In addition to being the native currency of the platform, RARI is also used for governance. RARI holders can vote on system upgrades, submit development proposals, create featured artworks or moderate platform curators. For now, voting is non-binding, and ultimately, the Rarible team will implement changes, but in the long-term, Rarible is aiming to become a transparent DAO.
As such, several governance principles are highlighted:
- Radical inclusion: every RARI holder can contribute to the platform and express ideas.
- Self-expression: as a base for most artist works, it’s only sensible that Rarible includes self-expression in its governance. However, this goes further than just artistic freedom and relates to anyone having the opportunity to bring their ideas on updates, new features, project ideas in front of the rest of the community.
- Positivity: At the end of the day, RARI holders will have a shared goal of making the platform successful. Nevertheless, by stressing the positivity, Rarible underlines the importance of holders to think through their proposals first before presenting them and carefully consider the impact changes can have on the platform. It goes without saying that all proposed changes should be to improve the platform.
- Responsibility: Every proposal has to include solid arguments in its favours and steps outlining the implementation process.
- Transparency: anyone can submit or comment on improvement proposals. Until a complete DAO status is reached, this should be done transparently, including the name of the person proposing and the amount of RARI they hold.
While Rarible hasn’t yet achieved the trading volume of NFT platforms like Opensea, the platform has made headlines, with Lindsay Lohan auctioning off a tweet on it for $59,000 ETH and giving the nascent platform a boost in publicity.
In addition to pioneering the concept of a marketplace run as a DAO, Rarible has also driven innovation in the insurance industry by leveraging NFTs to create tokenized insurance policies for several DeFi activities by yEarn called yInsure.
With the ever increasing interest in the convergence of DeFi and digital art, Rarible is definitely a platform to keep an eye on.
RARI is now available for trading on Bitcoin.com Exchange against BTC and USDT.