Rarible is a software that enables digital artists and creators to create and sell custom crypto assets that represent ownership in their digital work.
The Rarible platform is both a marketplace for those assets and a distributed network built on Ethereum that allows them to be traded without a middleman.
The tokens that creators generate on Rarible are called non-fungible tokens (NFTs). They are not interchangeable with bitcoins (or other units of money) since each NFT is unique. Rarible tokens do not possess this property, which is why they are called non-fungible.
NFTs are best known for CryptoKitties, which allows players to buy and sell virtual cats. It is even possible for these NFTs to “breed” to create new cats with different characteristics represented in their NFTs.
But Rarible proves NFTs have evolved beyond virtual cats. On Rarible’s marketplace, NFTs can be found in the form of digital artworks, memes and even virtual land parcels.
RARI, Rarible’s cryptocurrency, is at the heart of the platform. With RARI tokens, users can vote on platform proposals, moderate creators, and curate featured artwork.
Who Created Rarible? #
Rarible was founded in Moscow by Alex Salnikov and Alexei Falin. Salnikov has been working in cryptocurrency since 2013, while Falin previously co-founded a marketplace for digital stickers that can be used on chat platforms, according to his LinkedIn profile.
CoinFund, which has been one of the most optimistic about NFTs’ growth, invested in Rarible in its first round of funding in 2020.
According to the report, NFTs are a new way to own digital content and that digital content will be a huge market in years to come.
What is Rarible and how does it work? #
It is an online marketplace that connects buyers and sellers (typically digital artists, model creators, or meme-makers).
Using Rarible’s software, creators must “mine” a token before turning their work into an NFT. Using the website, they fill out a form with their image and other data, such as a price, that represents their work.
On the Ethereum blockchain, Rarible creates a new token. The NFT can also be transferred between wallets with Rarible’s software, just like other tokens on Ethereum.
The Ethereum blockchain enables Rare to embed the full history of an NFT’s owners and transactions within its code. In addition, both buyers and sellers have to pay transaction fees to the Rarible network when a transaction goes through.
Royalty payments #
An interesting feature of NFTs is the ability to program royalties, or the right to future cash flows, within them. Rarible allows creators to set a percentage of future sales and collect them automatically by issuing tokens.A major advantage of NFTs is that royalties can be paid immediately, unlike traditional content platforms. A piece of digital art that lists a 10% royalty would earn the creator 10% of any subsequent sales.
The RARI Token #
The RARI token was created in 2021 as an ERC-20 governance token that gives its holders the right to influence Rarible’s development. In addition, token holders will be able to submit and vote on proposals to change trading fees or add new features; act as community moderators; and curate artwork on the platform.
RARI has a maximum supply of 25 million tokens, 60% of which have been reserved for rewarding platform users, and 10% were airdropped to all NFT holders (not just those on Rarible). The remaining 30% of the RARI token supply was distributed to investors and the Rarible team.