Rarible bets on token buybacks to outlast NFT farming hype

1 day ago

RARI Foundation’s Anna Riabokon told Cointelegraph that licensing gross and interest buybacks volition prolong the platform’s rewards program.

Rarible bets connected token buybacks to outlast NFT farming hype

Non-fungible token (NFT) marketplace Rarible launched a redesigned trading level connected Tuesday and rolled retired a caller strategy that directs transaction fees into token buybacks.

Rarible told Cointelegraph that the model, which redistributes tokens to progressive traders, is intended to make a sustainable alternate to earlier NFT marketplace inducement schemes that relied connected fixed token allocations.

“Previous designs successful the NFT marketplace ecosystem were not sustainable,” Anna Riabokon, caput of operations and governance astatine the RARI Foundation, told Cointelegraph.

“They heavy incentivized traders with unsustainable levels of redistribution, lone to adust up erstwhile their allocations from the token organisation were exhausted.”

Riabokon told Cointelegraph that with the caller model, the RARI Foundation volition nonstop each gross generated from level transaction fees “back into the hands of the traders.” She claimed this fundamentally creates a “fee-free” marketplace.

Previous NFT marketplace attempts astatine token rewards

Other NFT marketplaces person experimented with reward programs, often relying connected token incentives to boost trading activity.

In 2023, Blur dominated NFT volumes utilizing a points-based strategy that rewarded traders with aboriginal token airdrops.

However, portion the strategy rapidly attracted liquidity, it besides fueled lavation trading methods, wherever users bought and sold NFTs backmost and distant to maximize airdrop rewards without genuine marketplace demand.

NFT level LooksRare besides launched a akin approach, distributing its token to traders arsenic portion of an emissions schedule. While the exemplary concisely boosted volumes, overmuch of the enactment fell sharply erstwhile token rewards mislaid value.

Rarible exec says gross procreation sets level apart

While erstwhile reward programme iterations from competitors showed unsustainable results, Rarible remains optimistic astir its token rewards system. Riabokon told Cointelegraph:

“Unlike different marketplaces, Rarible generates gross from licensing its bundle to brands specified arsenic Mattel and McFarlane Toys and implicit 40 different partners, and tin consequently enactment the broader assemblage with this strategy successful a sustainable and semipermanent way.”

“By redirecting each gross generated from trading into this inducement program, the strategy is inherently sustainable,” Riabokon added.

She besides said that the level volition guarantee transparency. Riabokon told Cointelegraph that each outgo of transaction fees is onchain and tin beryllium traced to the RARI Foundation treasury.

She said leaderboards volition beryllium provided arsenic portion of the inducement program, and the instauration volition contented regular transparency reports.