As explained by Anna Riabokon, Head of Operations and Protocol Governance at the RARI Foundation, previous incentive schemes in the NFT industry proved ineffective. Many platforms handed out tokens in fixed amounts, attracting users only until the reserves were depleted.
Rarible is offering a different approach. All revenue from fees flows back to traders in the form of RARI token buybacks. According to Riabokon, this effectively makes trading on the platform commission-free.
How It Worked Before
In 2023, the largest trading volumes in the NFT segment came from the marketplace Blur, which used a points system later converted into tokens through airdrops. However, this model encouraged not real trading but mostly wash trading, where users bought and sold NFTs to each other just to earn more rewards.
The LooksRare platform also applied an inflationary token model with ongoing issuance, distributing assets among traders. This temporarily boosted activity, but once the token price dropped, volumes fell sharply.
What the New Model Changes
Rarible claims the new model is more sustainable thanks to additional revenue streams. The company licenses its software to brands including Mattel and McFarlane Toys and works with over 40 partners. These inflows allow the system to be maintained long term, independent of trading volatility.
Riabokon emphasized that all fees go into the RARI Foundation’s on-chain reserve and can be tracked. The platform also plans to publish user rankings and regular reports on reward distribution.
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