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What Is Rarible (RARI) Token?

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by Oluwapelumi Adejumo · 7 min read
What Is Rarible (RARI) Token?
Photo: Rarible / Twitter

As the NFT marketplace is a haven for artists wishing to reap the profits of their handiwork, Rarible provides the avenue for that. And this guide explains how.

Rarible (RARI) is a decentralized NFT marketplace and minting platform that allows digital artists to create and sell their tokenized artworks. Rarible launched in early 2020, providing digital artists with a diverse suite of services.

With Rarible, artists can add all sorts of additional content like hi-res files or hidden messages to their artwork. Artists can also set up smart contracts that will allow them to collect royalties on the artwork whenever it changes owners in the future. Artwork created on the platform can be seen on Rarible’s art gallery, hosted on the Decentraland (MANA) virtual world.

Rarible’s Team

Based in Moscow, Rarible was conceived in 2017 and launched in early 2020. It is the brainchild of Alexei Falin and Alexander Salnikov.

Alexei Falin is known not only as a co-founder of Rarible but also as a creator of Sticker.place – the provider of the marketplace for people to create, discover and share stickers through messaging platforms. A full-stack developer with over 10 years of experience, Falin has co-founded several other small businesses with an eye on growing alongside the NFT market.

Alexander Salnikov is a financial genius and market strategist. Salnikov has also co-founded other companies, like Zenome. He is an enthusiast of the blockchain movement and has been in the crypto space since 2012.

The other members of the team, about a dozen people, are primarily artists. There is a large community backing the team. Its members and creators all over the world provide support and constructive feedback on the project.

Rarible’s Fundamental Technology

Rarible is a Decentralized Autonomous Organization (DAO) that allows users to create and sell ERC-20, ERC-721, and ERC-1155 NFTs safely and secures the Ethereum blockchain environment. A DAO uses blockchain technology, like programs and code, to ensure transparency and decentralization over the platform.

DAOs partake in several use-cases. One of them is the sale of non-fungible tokens – tokenized digital objects that use blockchain technology to link with a unique digital asset, ensuring the originality and ownership of the NFT. NFTs can be minted or created by artists and sold on online marketplaces or auctions.

Rarible combines both ground-breaking technologies, a DAO marketplace and NFT technology, on its platform. Users can use linked wallets like MetaMask and WalletLink to connect to the platform, use Rarible’s minting service, much like OpenSea or Mintable, to create their NFT, and then sell it on Rarible.

Rarible’s NFT Marketplace

Rarible’s NFT marketplace was initially an upfront, community-owned, non-custodial NFT mining platform and marketplace. However, with the continuous growth of the platform and an increasing number of users and investors, Rarible’s developers started working on making it a true DAO. Before it happens, users are able to decide on the platform’s future using the Rarible’s native RARI token, help govern the platform, and vote on proposals.

The popularity of Raribles NFT marketplace results from several features of the platform. Rarible is open, easy, and free to use for everyone, allowing those without any coding skills to create NFTs easily and sell it on the marketplace.

Rarible also offers an incentivization known as Market Liquidity Mining. Marketplace Liquidity Mining is not like other mining forms for other cryptocurrencies, as it merely encourages active use and participation on Rarible.

Rarible’s Governance Principles

One of the primary goals of Rarible is a transition to a true DAO supported by the RARI governance token and depending on community governance. Though voting with the token is non-binding and advisory only, the transition to a DAO can correct this..

Holders of the RARI token will shape the platform’s future by voting on policies and critical decisions that affect the entire platform. And after the complete transition to a true DAO, RARI holders can access even more tokens and increase their voting power.

This transition is not an easy one, and Rarible is doing its best to put infrastructure in place to support better community governance on the future Rarible DAO.

NFT Printing on Rarible

Artists and Creators who wish to mint with Rariblewill first need MetaMask on their browsers. Then they need to open the Rarible website, select “create,” choose the type of file they wish to turn to an NFT, enter the transactional values for the NFT, and pay a small minting fee. When the NFT order is minted, creators can then put it up for listing.

Rarible (RARI) Token

Rarible token, or RARI, launched in July 2020. Being the first governance token in the NFT space, it plays a crucial role in maintaining its parent platform’s ecosystem. The token grants holders the right to submit and vote on proposals like management of fees and platform rules.

Like that of other tokens in the crypto space, the total supply of RARI is not endless. It comes in at a total volume of about 25,000,000. This supply is being shared out gradually. 10% is reserved for Airdrops, 30% reserved for investors and team members, and 60% reserved for Marketplace Liquidity Mining.

Marketplace Liquidity Mining allows users and token holders to earn tokens whenever they create, buy or sell on Rarible. Every Sunday, Rarible distributes 75,000 tokens to all active users, with sellers and buyers receiving 50% apiece.

Pros and Cons of Rarible

Rarible offers numerous advantages that include:

  • The ability to create unique NFTs easily. With Rarible, creating an NFT takes only a minute. The platform offers a simple and interactive DIY UX/UI, allowing non-developers and artists to access the NFT marketplace easily.
  • Creators on Rarible have easy access to a large market of buyers for their created work. They also enjoy the use of unique smart contracts that set up royalty percentage payments on immediate sales or allow for auctions of artworks.
  • Rarible features an autonomous governance model controlled by holders of the minable RARI token. It allows active creators, buyers, and sellers to control the platform’s decisions and future. In time, Rarible will integrate a proper DAO structure.
  • Rarible’s protocol can solve the intellectual property market’s problems, the constant fraud, daunting licensing paperwork, and duplication of artworks by tokenizing these works of art, assuring their originality and ownership.

Despite all these advantages, Rarible still has some challenges to overcome. While they do not disrupt its service, they certainly need resolution if the platform wants to maintain its success. These drawbacks are as follows:

  • Wash traders, users who buy artworks from themselves to gain RARI rewards from Marketplace Liquidity Mining, have become a problem.
  • Rarible is still not a true DAO. As such, voting power on Rarible is advisory only. The votes signal the users’ desires to the Rarible team, who decide whether to act upon these decisions. For now, this method is necessary as it helps with scalability and security. But once Rarible achieves a complete DAO system, users gain full governance and control over the platform.

Conclusion

At the launch of the RARI token, Rarible  itself stated:

“Driven by the will to give our community the power to influence decisions and incentivize active participation. We are launching our governance token. This new project-management model has proven to be efficient within the DeFi industry, and we’re excited to launch the first governance token in the NFT space.”

No NFT market has consistently performed as well as Rarible. The NFT marketplace is a haven for artists wishing to reap the profits of their handiwork. And the Rarible with its RARI token provides the avenue for that.

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FAQ

What is Rarible?

Rarible is an NFT platform that uses blockchain to secure the sale and creation of digital assets. Rarible aims to be more than just a marketplace and intends to build a decentralized autonomous ecosystem where NFTs can be created or sold.

Who is standing behind Rarible?

Alexei Falin and Alexander Salnikov built Rarible. A team of 12 people supports them. They are also backed by several investors, including CoinFund, a blockchain investment company in New York.

How does Rarible function?

Rarible’s protocol is a combination of smart contracts that mint and exchange tokens and APIs that create orders and standards used in smart contracts. The highly liquid NFT environment is a robust on-chain protocol designed for NFTs to exist in interconnectedness.

What is Rarible's Governance system?

Rarible uses the RARI token to give users voting rights in the Rarible community’s decisions. The platform is designed to let users curate, moderate, and decide the community’s decisions and future.

The Rarible governance model is the first of its kind, an exploration of decentralization technology. It brings decentralized autonomy to the NFT space, freeing artists and collectors from harsh regulations while allowing them to decide their future.

What is RARI token?

RARI is the native token of the Rarible platform. It serves as both transactional currency and votes on the platform. Allowing both creators and collectors to buy, create or sell NFTs, it allows earning more tokens and gives them a stake in the voting process whenever proposals and policies must be decided.

What rights do RARI holders have?

Holders of the RARI token can participate in voting decisions using the power of their stake. With the implementation of Decentralized Autonomous Organization, the token shall become binding and serve as the cornerstone of voting and transactions on the Rarible platform.

What are the pros and cons of Rarible?

Rarible makes NFT creation and sale accessible to the underdog artist while also providing a platform which they can govern without outside disruption. However, it is still in the developmental phase, and the voting power granted by the native tokens is still advisory.

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