A very open platform
Unlike other artistic marketplaces on Ethereum, Rarible played its card on the table from its launch : the platform is open to all.
Without sending a work first to the development teams, all you have to do is identify yourself with your Web3 portfolio to start transforming your work into a Non-Fungible Token (NFT).
The creation of smart contract which will serve as “shop”Is managed by Rarible but you will always have full control of your assets.
An interesting aspect is also the diversity of assets that you can sell.
In addition to the possibility of “minter”Your works directly on the platform, a scan of all the NFTs present in your portfolio will be made. The usefulness of this scan: be able to sell any Non-Fungible asset on the platform, like Opensea.
All you have to do is pay for a transaction to “activate” the exchanges linked to a project, then a simply signing your wallet will suffice for all subsequent exchanges.
The RARI token, governance and reward
Rarible launched its own governance token, the ARRI. There is currently no other NFT platform that offers something similar and it has surely attracted attention.
This token was announced for two purposes :
- motivate users to use the platform;
- participate in decisions governance.
Taking model on of Decentralized Finance projects (DeFI), it is at the distribution level that the controversy started.
With a reserve of 25,000,000, there was first 8% which were distributed as an airdrop to all NFT owners. 2% were distributed as an airdrop to Rarible users.
60% of the supply is reserved for distribution (at a rate of 75,000 RARI each Sunday) to users who trade on the platform.
So far, everything seems correct. But for motivation to be maximum, these 75,000 RARI are distributed 50/50 between the most active buyers and sellers.
Nothing goes back to the starting box.
Faced with this very tempting proposition, it did not take long for the first “hacks” of this system start.
Users have spread the word and sold the same work to one another at exorbitant prices to be sure of receiving the reward at the end of the week.
“Wash Trading” controversy
According to Wikipedia, The “Wash Trading”Is a form of market manipulation in which an investor simultaneously sells and buys the same financial instruments to create deceptive artificial activity in the market
This practice has already been denounced several times par the NonFungible.com site and split a reminder article two weeks after the RARI token was launched. The arguments are clear for this platform, which has relied on analyzing data relating to NFTs for its livelihood and has since delisted the project from its market history.
Following this event, Rarible has not changed the way their token is distributed, preferring to banish users who abused this system.
The community, for its part, was shared. Indeed, the RARI allows to reward artists who have not been accepted on other crypto-art exchange platforms but also “ordinary” users.
Difficult, therefore, to have a clear opinion on this ethical question. However, this has not stopped CoinFund from investing in Rarible to continue the development of the platform! Above all, it was the idea of a governance token that they liked and in which they will commit energy … and money. This is an important step for Rarible because it will allow them to evolve with a more institutional framework while preserving the original idea: to remain as decentralized and open as possible.
Coming from an artistic training, and with a technical professional background, I have been working for several years in the blockchain universe, and more specifically in that of Non-Fungible Tokens. My added value in this ecosystem is to make the challenges and opportunities offered by these new technologies accessible to as many people as possible.