Liquidity Mininig Proposal $NFTI + $RARI

Proposal:

Rarible allocates a certain number of $RARI for an incentive distribution of the token for investors who provide liquidity of $NFTI to the Uniswap pools. The reward for staking liquidity in the NFTI/ETH pool depends on the number of NFTs (ERC-721) stored in the wallet, that was minted in Rarible ecosystem. The coefficients are as follows:

  • 0.75x – without any NFT in the wallet
  • 1x – with 1 (one) NFT in the wallet
  • 1.25x – with 2 or more NFTs in the wallet

What is $NFTI?

The NFT Index is a digital asset index designed to track tokens’ performance within the NFT industry. The index is weighted based on the value of each token’s circulating supply. The NFT Index aims to track NFT projects in Decentralized Finance that show a commitment to ongoing maintenance and development.

Motivations:

The RARI holder or any other investor gets the opportunity to benefit both from the growth of the entire NFT sector, keeping $NFTI in the liquidity pool, and from the distribution of RARI as a liquidity mining program.

At the moment, the index consists of 16.76% RARI. This means that 0.0812% of the total circulating supply of RARI is staked in the index. Attracting new index holders will lead to the issuance of more NFTI tokens, which in turn will lead to more tokens staked in the index. So, when the capitalization of the index will reach $25 million, 1% of the current circulating supply of RARI will be staked in the NFT index. It will make the index the 4th largest and project-friendly RARI holder at the current token price and the number of coins in circulation. This is more than in the RARI pool at Uniswap. Taking into account the current growth rate of the index capitalization, as well as the incentive program for the distribution of tokens, we predict that this goal will be achieved in the next two months. Rari has inflationary tokenomics and staking tokens in the NFTI index will strengthen the price of RARI. Since the holders of the index are mainly long-term investors, such an incentive program will have a positive impact on the project.

Expected results for Rarible:

  1. Additional crypto/DeFi minded users, who know why and how to use RARI platform.
    The main source of growth for the NFT sector and Rarible in particular is attracting new users interested in buying and creating NFT tokens. We are currently seeing an exponential growth in the digital art industry, and the NFT Index includes leading projects related to this sector. NFTI holders are target users of the ecosystem. The distribution program of RARI token as a reward for liquidity providing will allow these holders to focus on the Rarible project, which will ultimately lead to an even greater development of the RARI platform.

  2. Reducing the number of tokens in free circulation by freezing them in the NFTI token pegging smart contract.

  3. New use case and demand for RARI tokens.

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