Since the popularization of non-fungible tokens (NFTs), a variety of new markets have shown up to facilitate the auctioning and exchange of digital artwork and collectibles.
For those who haven’t yet discovered the world of NFTs, they are tokens that are completely unique from one another due to identifiers recorded on the blockchain. NFTs can be “attached” to digital (and real-world) assets to prove their authenticity and uniqueness.
Rarible was one of, if not the very first NFT marketplace that is community-owned, through its own governance token.
In this overview, we’ll go over the Rarible platform, what it does and how to use it to purchase or bid on digital artwork.
What is Rarible?
Rarible is an NFT marketplace that allows users to create (mint), buy and sell NFT digital artwork. The platform is especially creator-friendly, making it easy for a user to tokenize their work – a function known as NFT “minting”.
To do this, users simply upload their artwork in the appropriate format (usually in picture or video format under 100mb) and add specifics such as a title, price and built-in royalties.
Rarible’s marketplace itself is also nice and user-friendly, including a search bar, artwork previews and special categories such as “live auctions” and “hot bids”. Users and artworks can also be officially certified by Rarible themselves, preventing fraud and offering a clear visual certificate of authenticity.
The Rarible platform is potentially the very first decentralized exchange for NFTs that opted for community ownership and governance. This was achieved through the launch and distribution of its native token, $RARI. The platform’s ultimate goal is to eventually become a completely decentralized autonomous organization (DAO), where RARI token holders make all of the decisions.
Rarible was founded in early 2020 by Alexei Falin and Alexander Salnikov, who each have previous successes in founding software or blockchain-based companies. The majority of the Rarible’s team is based in Moscow, Russia.
The platform has raised funding on two separate occasions, beginning with an undisclosed sum of pre-seed funding in September 2020 from CoinFund. In February 2021, Rarible then raised another $1.8 million in seed funding round from four companies, including early-stage token fund 1kx.
As mentioned above, RARI is the official governance token of the Rarible platform. RARI holders have voting rights for curation, moderation, and platform upgrades. This includes the ability to submit and vote on proposals regarding platform trading fees, new features and more.
The total supply of the RARI token is 25 million tokens, distributed as follows:
- 30% allocated to the team and investors
- 10% allocated to community airdrops
- 60% allocated to marketplace “liquidity mining”.
Liquidity mining refers to distributing tokens in exchange for providing liquidity to a platform. In this case, Rarible users earn RARI tokens in exchange for buying and/or selling NFTs on the platform.
Currently, 75,000 RARI tokens are distributed per week to Rarible users making purchases or sales on the platform. This allocation began on July 19, 2020 and is set to continue for a total of 200 weeks.
How does it work?
Next, place a bid or an offer on the selected artwork. This will be denominated in Ether (ETH).
Once you have successfully won an auction or purchased the NFT for the asking price, you can view your new artwork in your wallet. To do this, click on the user icon in the top right-hand corner.
From here, you may also choose to resell the NFT. Any offers made to you will be displayed on the right side of the page. You can either sell your NFTs at a fixed price or put them on auction.
To keep up-to-date with Rarible, we recommend checking out their blog on Medium or their governance forum. For short-form updates and discussion, you can also find them on Twitter, Discord, Telegram and Instagram.