The four stages of the Binance NFT platform’s new Subscription Mechanism include the Preparation stage, the Subscription Stage, the Calculation Stage, and the Distribution Stage respectively.
Binance NFT, the Non-Fungible Token trading arm of the Binance cryptocurrency exchange has launched a new feature dubbed the Subscription Mechanism to give ‘fair and equal’ access to all users of its platform who want to invest in digital collectibles.
The advent of NFTs was arguably one of the most-watched trends in the blockchain ecosystem in the past year. With the continuous demand for digital works of art registered on the blockchain, creators are largely unable to churn out enough quantity to go around everyone. This often results in a rat race at launch, with many investors left unserved as well-publicized NFT collections typically sell out at launch.
Binance created the Subscription Mechanism so as not to underserve its users anymore. While the subscription model is not an automatic guarantee that users will gain allocation to participating in an NFT collection drop, the trading platform said it has the potential of increasing the chances by a lot of factors when compared to previous models.
To enter the Subscription Mechanism, users must hold a minimum amount of tokens before they are allocated ‘Participation Tickets’ to participate in the NFT sale. The minimum allocation is notably defined by the NFT owners and is not fixed. The Subscription Mechanism model follows four unique stages, all of which were described below.
The Four Stages of the Binance NFT Subscription Mechanism
The four stages of the Binance NFT platform’s new Subscription Mechanism include the Preparation stage, the Subscription Stage, the Calculation Stage, and the Distribution Stage respectively.
The preparation stage is the phase in which interested participants will show their interest in the collection they hope to launch. This show of interest has to be backed by holding the defined number of tokens required to participate in the sales. As Binance NFT noted, this required token is not fixed and can vary considerably from one project to the other.
Users move onto the Subscription phase if their balance meets the defined minimum requirement. Each user will then receive Participation Tickets according to the ‘purchase limit per user’ set by the NFT project/creator.
“Participation Tickets indicate the maximum number of NFTs each user can potentially purchase from a sale. You can choose to subscribe to the NFT primary sale by committing part or all of their participation ticket(s). To keep our NFT sales fair, we want to emphasize that subscribing to more Participation Tickets does not guarantee a successful purchase. The more tickets you commit, the higher your chances of successfully purchasing the NFT,” the announcement reads.
The Calculation period follows the subscription phase and here, Binance NFT’s system will select winning tickets from all subscribed participation tickets in a fair and random manner. Users who obtain a winning ticket are allowed to purchase an NFT in the NFT primary sale. The last phase is the Distribution stage where all purchased NFTs are sent to users’ wallet addresses, with the appropriate amount of BNB deducted.
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