Rarible is a marketplace for creating, buying, selling and trading NFTs. It is complemented by its native currency, the RARI, an essential element in its system of governance. Aiming to become a “public good” in the medium term at the service of its users and the art world, find out how Rarible works and what its interests are.
What is the Rarible Platform?
Rarible is the largest platform for buying and selling non-fungible tokens (NFTs) via the blockchain. Based in Moscow and founded at the beginning of 2020, it defines itself as “the first marketplace for user-owned NFTs”. Rarible works with the RARI, a token used to improve its governance system. It is particularly focused on the artistic field.
On the one hand, it allows artists to tokenize their creations. On the other hand, users have the option of buying, trading or collecting said creations.
Rarible has experienced unprecedented media coverage since the end of 2020. The possibility given to users to exchange intellectual property rights on a decentralized platform is a real revolution in the art world. The provenance of the works is also tamper-proof since the creation of the NFTs takes place on the Ethereum network, accessible and verifiable by everyone at any time.
Moreover, Rarible also allows everyone to have access to art, which constitutes a positive democratization of the sector. For the artists, it is also the opportunity to have an exhibition, whereas places in the galleries and a traditional media presence are always difficult to obtain.
Artists or Content creators
Rarible’s ecosystem works largely thanks to the diversity of works produced and offered for sale on the platform. Thus, content creators can offer books, music albums or films, among others. What advantages? It allows different content creators to work in an environment without third parties (agents, galleries, etc.).
The platform also allows artists to present themselves to provide different links to their social networks. The platform thus creates a strong link between the artist and the members of the community. This sense of belonging is a real added value for the platform.
The procedure for creating an NFT is very simple. All the content creator needs to do is connect their wallet to Rarible. Then, he just has to click on the “Create collectible” button to start creating his NFT. He then has the option of creating a single or multiple NFT. The multiple options make it possible to create an NFT, which can be sold in several copies. The next step is to upload your asset, present it and set a price (in ETH). Please note that service charges apply and amount to 2.5% of the amount of the fixed price.
An artist can also create an NFT on the platform without immediately selling it. If he decides to sell it, he can also change the price at any time. It is also possible for an NFT holder to transfer it to a user free of charge. Finally, if the artist wishes, he will also have the possibility, as long as the token is in his possession, to simply delete it from the network. This operation is called a burn, not to be confused with the broader process of “token burn”.
Buyers or Collectors
Like all marketplaces, the platform is set up so that sellers and buyers can meet. For the latter, whether they are collectors or speculators, Rarible provides quick access to countless content from well-known or unknown artists. For each NFT that interests you, you can have free access to general information, the number of pieces (if the work is “multiple”), as well as the history of the owners.
You then have the possibility of exhibiting your works to possibly resell them. It is also a possibility to make known the artists and thus raise the price of your NFTs.
The Royalty System
The platform has provided for a royalty system, allowing the artist behind the creation of the content to earn a percentage on future resales. Thus, when putting a creation on sale, the content creator has the possibility of defining a percentage, which he will automatically receive during future transactions relating to the work.
Here is a concrete example, you are a content creator, and you want to sell a digital painting. You set the purchase price at 1 ETH, with a royalty percentage of 5%. A buyer acquires your painting and then decides to resell it for an amount of 2 ETH. You will automatically receive 5% of the 2 ETH, i.e. 0.1 ETH.
The Verification System
The founders of the platform try to ensure as much as possible of the authenticity of user accounts. Thus, a verification system has been put in place. The presence on social networks, the number of products sold or purchased, as well as interactions with members of the community are all indicators which, once cross-checked, ensure maximum security for users.
A free form to fill out on the site also allows you to obtain a verification badge. Some questions are very open-ended, such as the type of art you are interested in and why you are on the site. The verification process is quite long (up to two weeks), and validation is left to the discretion of the team of moderators.
The RARI Token
The RARI is the token of the Rarible platform. It is an ERC-20 token, i.e. based on the Ethereum network. It was designed to reward active users with an opportunity to participate in governance. Concretely, ARRI holders can submit proposals relating to platform fees, vote in favour or against the proposals or even be content moderators.
“RARI was created to empower the community to influence decisions and have active participation in the project,” says the official Rarible website.
The team does not hide its intention or its objectives: Rarible aims to become an autonomous and decentralized organization. That is to say; the decision-making power will belong solely to the users. By allowing creators and collectors to vote and choose directions, the stated ambition is clearly to become “a public good”.
Regarding the distribution of the token, 60% of the total supply is reserved for buyers and sellers of the platform. Thus, 75,000 tokens are distributed every Monday to creators and collectors who have carried out operations during the previous week. The distribution is made equally between buyers and sellers (50% each). The distribution is made in a logical way, in proportion to the volume of purchases and sales made on the platform. This system is called “ Marketplace liquidity mining”.
For the launch of the project, 10% of the total supply is also reserved for airdrops for buyers of NFTs, regardless of the platform on which they obtain them. However, two conditions are necessary, that the person is a member of Rarible and that the person has obtained his or her NFTs via a platform that lists the data. Be careful; however, 6% of the total offer has already been allocated on July 15 and 20, 2020. No date has yet been communicated for the last deadline.
The remaining 30% is reserved for investors and the team.
If today a little more than 850,000 RARI are in circulation, it is important to note that the total supply is 25 million. In terms of data analysis, it is difficult not to see the recent success of this token. Although it is still very far from the best projects in terms of capitalization, RARI, however, passed its ATH in March 2021. While its price was still only a few dollars at the end of 2020, it passed the $30 level at the start of the following year.
The trading volumes also reflect a certain enthusiasm for the RARI because where it was difficult to reach the million dollars of exchange per day at the creation of the project, we now see daily exchanges very regularly exceeding fifty million dollars.
The Rare Team
The first of them also co-founded Sticker.Place, a computer software company. He graduated from the University of South Carolina and the Moscow University of Economics.
The second is already a regular on the blockchain since he coordinated the ICO of Humaniq (HMQ), a project still in operation and intended to provide tools to unbanked people. He had previously created several companies with conclusive results.
On the company’s LinkedIn profile, about twenty employees are listed from quite diverse backgrounds. Note, however, the presence of certain artists such as the Argentinian Lucia Ponteville.
Finally, the community surrounding the project is particularly active and present on all traditional social networks.
How to Buy RARI?
It is not possible to buy RARI on Rarible. They are only distributed to active players on the platform.
If it seems that the RARI is currently in an excellent dynamic and a certain upward trend, benefiting in particular from the general bull-run, it is, however, not yet listed on major platforms. If MXC, Hotbit and Poloniex offer them, you also have the possibility of acquiring them on decentralized exchanges, such as Uniswap, for example.
Rarible Ratings & Reviews
Rarible is still a young project, but it looks very promising. However, it will have to face competition from another heavyweight in the sector: OpenSea. In addition, given the growing interest in this market, other projects are beginning to emerge with the same positioning: SuperFarm, Flow or Ultra, which could impose themselves quickly.