Rarible is a leading non-fungible token (NFT) exchange on Ethereum. Recently, the platform surpassed $5M in sales in one month, causing NFTs to catch the eye of many prominent crypto investors. Morgan Creek Digital co-founder Anthony Pompliano stated in his newsletter.
Similar to how Bitcoin is superior to gold in almost every way, digital art is superior to traditional art in almost every way also.
According to Opensea’s NFT rankings, Rarible is at the top, with an average volume of 2,000 ETH per 7 days. Furthermore, it has over 5,500 NFT owners on the platform; meaning it appears to be the most active and used marketplace for trading digital art. A great time to explore what the Rarible platform offers, and how their ecosystem uses RARI token for liquidity mining.
What is Rarible?
Rarible is a platform that enables the easy creation of digital artworks or collectibles secured by Blockchain. Creators use the platform to turn their work into NFTs, a process known as minting, without needing to know any coding skills. NFTs can be unique creations (as in only one exists), or limited editions creations. Rarible also acts as a marketplace, making it very easy to buy or sell non-fungible tokens. Meaning that digital artists can build a reputation online, and monetize their artwork. Payment happens in Ethereum, or via several mainstream ERC20 tokens such as Dai, ENJ or LINK.
Currently, we find a lot of digital art NFTs follow a cryptocurrency theme or illustrate a trending project of the week.
What problem is Rarible solving?
Globally artists are struggling when it comes to monetizing their creations. When sharing their vision and art, it comes at the risk of being stolen or forged. This is especially true for digital artists where images are on display via website. Minting an NFT via Rarible, ensures that you can always prove you’re the creator because the blockchain provides an immutable record.
Furthermore, artists that do reach global recognition have to deal with galleries and arthouses taking a big percentage of any sales.
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Not to mention if you are entitled to any resale percentage, you have to keep track of that and manually keep tabs on your art piece. Whereas on Rarible, 10% of future sales always go back to the creator.
What is a RARI token?
RARI is a governance token, which provides voting power to its holders. Rarible aims to be a truly decentralized platform driven by its users. RARI enables active creators and collectors on the platform to vote on platform upgrades, along with curating and moderating art on the marketplace.
RARI also acts as an incentive for using the platform, through airdrops via Marketplace Liquidity Mining. A process which resembles how many DEXs and DeFi protocols provide rewards for providing liquidity. Ultimately, the roadmap plans to transition to Rarible DAO where RARI token holders make all the decisions.