What is Rarible and RARI Token? - CoinNav.io
What Is an NFT?
A non-fungible token (NFT) stands as a distinctive entity residing within a blockchain framework. Each NFT acts as a representation or reference to specific data, such as an image or video. For instance, in the realm of fungible assets, like Bitcoin, the exchange of one unit for another remains interchangeable. Conversely, the exchange of artwork of unparalleled uniqueness, such as the renowned "Mona Lisa," for an identical counterpart, becomes a paradoxical notion.
As NFTs become integral constituents of the Ethereum blockchain, their traceability is facilitated. This affords the ability for both buyers and sellers to meticulously authenticate the legitimacy, chronology, and proprietorship of every digital collectible. On a more intricate level, NFTs generally manifest as intelligent contracts, frequently adopting the ERC-721 standard, thereby furnishing an interactive framework for individuals to engage with.
What Is Rarible?
Rarible stands out as a trailblazing NFT platform that operates as a decentralized marketplace, issuance conduit, and distributed network. Its pioneering presence is embedded within the Ethereum blockchain.
In the realm of NFTs, often referred to as crypto-collectibles, lies the concept of granting a digital imprimatur of authenticity. This transformative attribute is what propels Rarible into a revolutionary stance, as it introduces an innovative dimension of ownership for digital content such as imagery, music, videos, and documents.
NFTs hold the distinct characteristic of serving as liquid intellectual property. These digital artifacts epitomize uniqueness, existing in finite quantities as identifiable and traceable assets. This strategic design predominantly serves to thwart the proliferation of counterfeit versions. It's this precise quality that fuels the escalating traction of NFTs, exemplified by the staggering $60 million valuation achieved by the "Beeple" artwork. As an avenue traversed by artists, digital artisans, and collectors alike, Rarible serves as a fulcrum for their activities.
How Does Rarible Work?
Rarible operates as a dynamic marketplace that facilitates a connection between sellers, who are often creators of various digital content like digital artists, model designers, or meme creators, and buyers who are interested in acquiring their chosen artworks.
To transform their creations into NFTs, creators must initiate the process of "minting" a token through Rarible's dedicated software. This involves completing a form on the platform's website and attaching essential components like their artwork image and pertinent details such as a listing price, all of which represent their creative endeavor.
The Rarible platform subsequently generates a fresh token on the Ethereum blockchain. Comparable to other tokens utilizing the Ethereum network, these NFTs can be transacted between digital wallets utilizing Rarible's software.
Rarible takes advantage of the Ethereum blockchain's capabilities to embed a comprehensive record of ownership transitions and transactions within the code of each NFT. Notably, during the course of a transaction, both the buyer and the seller are required to cover transaction fees, which are then directed towards the Rarible network.
One captivating aspect of NFTs is their capacity to incorporate royalties, effectively encapsulating future revenue streams, within these digital assets. This innovation allows creators on Rarible to establish a predetermined percentage of forthcoming sales and automate their collection through token issuance.
This feature presents a significant attraction for creators, as unlike conventional content platforms, NFTs are uniquely equipped to promptly distribute royalties.
For instance, if a particular digital artwork specifies a 10% royalty, the creator would directly receive 10% of any subsequent sale of that artwork.
A captivating attribute associated with NFTs lies in their capacity to incorporate programmed royalties, encompassing entitlement to prospective financial streams inherent to these assets. In essence, creators utilizing the Rarible platform can establish a predefined portion of forthcoming sales and effortlessly accumulate these earnings by generating a token.
This significant facet serves as a potent magnet for creators, as NFTs, in stark contrast to conventional content platforms, can be meticulously fashioned to facilitate instantaneous disbursement of royalties.
The History of Rarible
The inception of the Rarible platform traces back to the year 2017, culminating in its official unveiling in the early months of 2020. Pioneered by the creative minds of two adept Russian developers, Alexei Falin and Alex Salnikov, Rarible saw its foundations take shape. Underpinning this venture is a dedicated team of 12 individuals, prominently composed of artists who share the vision.
Alexei Falin, currently at the helm as Rarible's CEO, brings a wealth of experience as a seasoned full-stack developer. His professional journey was complemented by his role in establishing Sticker.Place, a software entity that bridges the gap between artists and consumers seeking to acquire stickers. It was from this vantage point that the notion of tokenizing collectibles found its roots, ultimately giving birth to the Rarible platform.
Alex Salnikov, a notable luminary in the financial domain and a market strategist of repute, has also been an instrumental figure in Rarible's narrative. With previous ventures including the co-founding of MarginCall, a trailblazing exchange boasting technological prowess, and engagement in Humaniq, a widely recognized blockchain initiative catering to the unbanked populace, Salnikov's influence is palpable.
Rarible's journey is fortified by an array of backers, among them the likes of CoinFund, a New York-based blockchain investment entity. The fruits of Rarible's labor are substantiated by its impressive metrics. According to DappRadar, the bustling Rarible marketplace plays host to a thriving community exceeding 50,000 users, orchestrating a trading volume that surmounts a remarkable $140 million.
What Are RARI Token and DAO?
Rarible envisions the evolution into a DAO, a dynamic system driven by its user community and fortified by blockchain technology. DAOs utilize blockchain's inherent capabilities, such as smart contracts and code, to establish a framework of transparency and decentralization. A pivotal aspect of this structure is the principle of governance.
This is where the significance of RARI emerges. The RARI token functions as Rarible's governance token, endowing the Rarible DAO with the authority to shape decisions and motivate active involvement across the platform.
The Rarible DAO represents an organizational structure wherein decision-making authority is vested in the platform's participants. Empowered by the RARI token, which is allocated to engaged users, the DAO empowers collectors and creators to participate in voting processes that influence various enhancements and determine the trajectory of platform development.
This design forges a direct connection between the governance of the Rarible ecosystem and its most dedicated contributors, reinforcing Rarible's identity as a communal resource steered by its vibrant community.
The Purpose of RARI Token
RARI holds a multifaceted role, including its utilization for onboarding marketplace participants and encouraging active engagement among NFT traders within the platform. This dynamic is referred to as marketplace liquidity mining. By engaging in buying or selling activities on the Rarible marketplace, users are rewarded with RARI tokens. This strategic approach aligns with the overarching vision of empowering the Rarible DAO.
Furthermore, the distribution mechanism of RARI tokens serves as an incentive for users to list their NFTs exclusively on the Rarible platform.
However, the central objective of a DAO is to establish a user-centric decision-making framework. In the case of Rarible, the foundation of this paradigm lies within the RARI governance token. Consequently, those holding RARI tokens will wield the power to shape the trajectory of Rarible within the NFT landscape.
How does RARI have value?
Rarible's native digital currency, RARI, assumes a pivotal role in upholding and orchestrating its platform.
Precisely, possession of RARI empowers users to propose and partake in voting processes aimed at altering the platform's regulations. This encompasses voting on potential adjustments in fees, the allocation of those fees, and the regulations overseeing creator promotion.
It is crucial to underline that RARI-based voting retains a non-binding nature, and Rarible's ultimate acceptance and execution of user decisions remain imperative. Nevertheless, Rarible's ultimate aspiration is to transition authority to a software-driven entity managed by users, known as the Rarible DAO.
Similar to numerous other cryptocurrencies, the supply of RARI tokens is finite, adhering to the software's guidelines permitting a maximum cap of 25 million RARI tokens.
Significantly, 60% of the entire token supply is earmarked for Rarible users, set for distribution to both buyers and sellers across the initial four years of the network's functioning. These tokens are dispensed on a weekly basis to individuals who have either executed a sale or purchase within Rarible's marketplace during the preceding week.