$RARI / Rarible Improvement Proposal

Since the NFT space is heating up, and more people entering it, I think it is time to offer something different;

As we all know wash trading has been going on for a while, where some people shamelessly posting random pictures not even bothering with cropping or anything, just 10 ETH, 100 ETH purchasing to entitle themselves to weekly airdrop.

Given the 2017 success of Cryptokitties and recently Cryptopunks, I would to put out some proposal to heat up the Rarible platform;

  1. There are currently 4 sell options defined when sellers create their NFT(s). Those are ETH, DAI, RARI and ATRI.

Proposal 1: Allocating weekly incentive heavily favouring sells & purchases done through RARI token. This doesn’t mean sells&purchases done through ETH or others tokens won’t get anything but allocation could be %85 RARI, and remaining three option gets %5 each.

This just does not increase the usage of RARI token itself but also solves the wash trading problem as since this would require washers to purchase RARI token to entitle themselves to weekly reward.

And also on the technicality side 0x API(e.g. Matcha, Metamask) could be a way to go for people to purchase NFTs with RARI option without leaving the platform to convert and do the conversion on the spot from any other token from their wallet to RARI by using 0x API (and there even could be a small conversion fee that could be sent to dev fund as to open up a second revenue stream to fund development).

2. Incentivizing the LP(s)

Proposal 2: Incentivizing sell and purchase with RARI will require higher liquidity between ETH-RARI(and possibly other pairs such as DAI-RARI etc…) therefore it is crucial to allocate some portion from the weekly distribution to LP(s) will play a key role to make them continue supplying necessary amounts while people are actively using RARI on Rarible platform to buy and sell.

And since Rarible is a NFT marketplace, one cool thing we could do is set up a store page where it listens to the UNI-LP contract events and every time someone locks their ETH-RARI(or other pairs), we use generative art(i.e. just like Artblocks / Async) to generate NFT visual, send it to store page and make it claimable by the LP(if he/she manages to grab before someone else claims through the store page, as we make it claimable by anyone for free but for a gas cost to mint) and if we use generative art, each LP gets a unique NFT and it could be the representor or the snapshot of like “Hey, I’ve been an LP to ETH-RARI pair” or sell if they want to.

3. Fee burning to reduce inflation

Proposal 3: So far %10 of the RARI is distributed and remaining %90 is set to be used in the future for certain purposes thus what I would like to offer here is if the proposal 1 sounds good enough(alongside proposal 2), the purchases(or sells) done with RARI, where %2 fee on both side can be burned and this way could engage in deflation early on.

And again, where here we could also use generative art that is going to be implemented inside Rarible to listen to purchase events to generate “Burnt NFT(s)” that is representing amount of RARI is burned through that NFT transaction.

4. DeFi & NFT Experimental Fashion Trial on Rarible

Proposal 4: Using the uniqueness of generative art & Rarible platform by listening loan, borrow events(from AAVE, Comp, DyDx and others) or even better fiat to stablecoin prints we could utilize generative art to produce NFTs for those events.

Say $100M USDC minted, that gets picked up by Rarible system, generative art produces a unique NFT for $100M print event and through visuals it represents the transformation from fiat to stablecoins and such things do carry monumental value so this could be experimented as seeing if such metrics visualized and turned to NFT can be picked up by DeFi and crypto community in general to own it.

Like proposal 2 and 3, minted NFT is put on a store page where it is can be claimed by anyone for free(for a gas cost, of course).

By utilizing generative art with certain metrics on the blockchain and through visual feature of NFTs, it could present an interesting case to give it a try.