Rarible Inc. is a Delaware corporation and the operator of a community-owned NFT marketplace used to create, sell, or collect digital items secured with blockchain. Rarible was launched in early 2020 by Alexei Falin and Alexander Salnikov and consists of the Rarible platform, the Rarible Apps, the Rarible DEX System, RARI token, the Rarible DAO and the Rarible Governance Module. Rarible is an open-source, creator-centric, and community-owned NFT marketplace for users to mint, sell, and create collectibles. Rarible raised an undisclosed amount in a pre-seed round that was closed by leading New York-based blockchain investment firm CoinFund.
Rarible is a non-custodial marketplace which means that users have full control of their tokens. The platform does offer IP rights to users through Proof of Provenance. Any user can access the marketplace to create and display their artwork. Users can also collect the art pieces displayed by purchasing them in Ethereum tokens. Rarible is a community-owned, decentralised marketplace for non-fungible tokens (NFTs). The NFT marketplace, Rarible, allows users to create and sell digital collectibles through the platform. Rarible makes it possible for users to mint digital collectibles with no coding skills required and enables creators to turn their works into NFTs and sell them on the marketplace. Both ERC-721 and ERC-1155 tokens are supported on the Rarible platform.
RARI is the native governance token designed to reward active creators and collectors on Rarible, and power the decentralised autonomous organisation (DAO) which is essentially an unincorporated association represented by rules encoded as a computer program that is transparent, controlled by the organization members and not influenced by a central government. Rarible governance token RARI is distributed weekly among the most active creators and collectors on Rarible. The RARI token cannot be directly purchased from the Rarible marketplace. It can be earned by actively participating on the platform which is a process called liquidity mining. It can be purchased through decentralised exchanges such as Uniswap, Balancer, or regular exchanges like MXC.
What’s the purpose of a governance token? Well, such a token comes into use for instance, when the community votes on the amount of fees to be set on a platform like Rarible. According to the last vote on fees, they introduced 2.5% fees on both buyers and sellers side. If you’re a RARI token holder, you’re able to participate in such activities.
- The total number of RARI is fixed at 25,000,000 RARI.
- 30% of the total supply or reserve supply will be allocated to Rarible Inc.’s affiliates, founders, employees and other personnel (including grant recipients or technology development (sub-)contractors, if applicable) and equity investors.
- 10% of the total supply or the “airdrop supply” will be allocated to bona fide active users the of Rarible apps (based on their trading volume and holders of collectibles eligible to trade on the Rarible apps)
- 60% of the total supply or the “mining supply” will be allocated to users who engage in bona fide, good faith, arm’s-length trading of collectibles on the Rarible apps, based on the transaction value of such trading.
Rarible DEX System
The Rarible DEX System is a public software utility deployed on Ethereum, which is accessible directly through any Ethereum node or indirectly through any compatible Ethereum “wallet” application which interacts with such a node. Through the Rarible DEX System, any person may create, buy, sell and transfer Collectibles.
Rarible DEX System and Rarible Apps
Interacting with the Rarible DEX System does not require use of the Rarible Apps, but the Rarible Apps provide a potentially more convenient and user-friendly method of reading and displaying data (including Collectible Metadata) from the Rarible DEX System and generating standard transaction messages compatible with the Rarible DEX System. Interacting with the Rarible DEX System through the Rarible Apps requires use of an independent, user-operated Ethereum wallet application through which the user may broadcast the transaction message to Ethereum for processing by Ethereum nodes. The Rarible Apps may be used to generate standard transaction messages for interacting with the Rarible DEX System and transmitting those messages to the wallet application. Through the wallet application, a user may broadcast the transaction message to Ethereum for processing by Ethereum nodes. Assuming normal operation of the wallet and the relevant Ethereum nodes, the Ethereum nodes should utilize such transaction messages to make function calls against the relevant bytecode and ultimately include the results of such computations in an Ethereum transaction block, thus effectuating an interaction with the Rarible DEX System.
How to Create your own NFT on Rarible
As a user of Rarible, you have two options. You can either create a collectible or explore the Rarible marketplace. As a user you need to connect an Ethereum wallet like Metamask to Rarible’s interface.
Once you’ve read the terms of service and confirm that you’re of legal age to use the platform, you can then choose to proceed if you wish to.
Once connected, you can now explore the platform.
How to Create Collectibles on Rarible
Click the blue CREATE button at the top of the right hand side of the page or top panel.
Choose to either mint a Single NFT or an NFT with multiple editions.
Upload your file.
Once you complete all the necessary information for your creation…
Now you can upload files, mint token, and sign the sell order.
Fees, Commissions & Other Charges
Creating, buying, selling or transferring collectibles on Rarible may be subject to fees, commissions, royalties and other charges. Service fees may be adjusted from time to time and commissions are set at the sole discretion of the collectible creator and may range from 0% to 100%. In the event that a user acquires a collectible with a 100% commission, the user will be unable to collect any proceeds of a sale of that collectible on the Rarible platform.
Gas fees are set by the user through the user’s independent Ethereum wallet application, based on the market conditions on Ethereum. Currently, all fees must be paid in ETH and there are no refunds. All transactions involving the offering are final. All fees relating are non-refundable.
Rarible’s Royalty System
Whenever you create a collectible you can set a certain percentage as royalty for secondary sales. For instance, if you create a digital painting and sell it for 0.2 ETH, the royalty is 10 percent. Your buyer then sells your painting at a higher price point for 0.5 ETH. Here, the royalty system kicks in. As the original content creator you receive 10% of that sale, being 0.05 ETH. Please be aware that royalties set on OpenSea, another peer-to-peer marketplace for rare digital items and crypto collectibles don’t carry over to rarible.com at the moment.
In the third quarter of 2020, they launched the support of Yearn’s yInsure: NFT-wrapped smart contract insurance. Rarible’s connection to Yearn Finance’s yInsure initiative facilitates issuing insurance in the form of tokens. yInsure allows users to take out tokenized insurance on various DeFi activities through the Rarible marketplace.
- Open-source and non-custodial marketplace
- Rarible facilitates peer-to-peer trading with low costs of NFTs or collectibles
- Rarible makes it possible for users to create and mint their own digital tokens
- The platform offers a user-friendly experience
- The Rarible marketplace could potentially be manipulated by bad actors who want to access RARI token
- The platform currently only supports tokens of Ethereum blockchain network
- The project is still in its early phases so it’s yet to prove its worth
Understanding the Risks
Users are responsible for all matters relating to their accounts on the Rarible Apps or the blockchain accounts or addresses through which they interact with the offerings on the platform. Collectibles or other materials uploaded to the offerings may be subject to limitations on usage, reproduction or dissemination.
According to Rarible, users on their platform are responsible for adhering to such limitations if they acquire collectibles. This means that users ought to exercise caution when giving out any personally identifiable information through any of the offerings. Rarible Inc. does not control or endorse the content, messages or information found in any offerings and Rarible specifically disclaims any liability with regard to the offerings and any actions resulting from any user’s participation in any offerings.
Collectibles, $RARI and other digital assets relevant to the Rarible platform depend on the Rarible DEX System or other smart contracts deployed to Ethereum, some of which may be coded or deployed by other entities other than Rarible Inc. Once deployed to Ethereum, the code of smart contracts, including the Rarible DEX System, cannot be modified. In the event that the Rarible DEX System or other smart contracts are adversely affected by malfunctions, bugs, defects, malfunctions, hacking, theft, attacks, negligent coding or design choices, or changes to the protocol rules of Ethereum, users may be exposed to a risk of total loss and forfeiture of all collectibles, RARI token and other relevant digital assets.
Cryptography is still a progressing field and advances in code cracking or technical advances such as the development of quantum computers may present risks to Ethereum, the Rarible platform.
The fiat-denominated prices and value in public markets of assets such as ETH, NFTs, collectibles and RARI have historically been subject to dramatic fluctuations and are highly volatile. As relatively new products and technologies, blockchain-based assets are not widely accepted as a means of payment for goods and services. A significant portion of demand for these assets is generated by speculators and investors seeking to profit from the short- or long-term holding of blockchain assets. The market value of any ETH, NFT, collectible or RARI may decline below the price for which a user acquires such asset through the Rarible platform or on any other platform.
Blockchain technologies and digital assets are subject to many legal and regulatory uncertainties, and the Rarible platform, NFTs, collectibles and RARI could be adversely impacted by one or more regulatory or legal inquiries, actions, suits, investigations, claims, fines or judgments, which could impede or limit the ability of user to continue the use and enjoyment of such assets and technologies. Ethereum, the Rarible DEX System, the NFTs, the collectibles and RARI may be subject to forks.