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Best NFT rarity tools – check how to assess the value of your tokens

Maciej Zieliński

03 Mar 2022
Best NFT rarity tools – check how to assess the value of your tokens

NFT tokens (Non fungible tokens) are gaining more and more popularity in the new technologies sector. They have spread in almost every area, creating a bridge between the real world and the virtual world. With NFT tokens, their owners have specific rights for certain assets. Unfortunately, many companies decided to use NFT only to achieve profit. What determines their value? What tools can we use to find out whether a given token is worth owning? You can find out in the article below! 

Table of contents

  1. Factors which influence the worth of NFT
  2. Traits, the individual attributes of an NFT
  3. Tools used to evaluate NFT rarity
  4. Momentranks.com
  5. Icy.Tools
  6. Moby
  7. Traitsniper
  8. Rarytassniffer
  9. What is the difference between NFT and cryptocurrency?
  10. How to purchase NFT?
  11. Fundation
  12. Nifty Gateway
  13. OpenSea
  14. Rarible
  15. SuperRare
  16. What are the dangers involved with purchasing NFT?
  17. Summary
NFT rarity tools

Factors which influence the worth of NFT tokens projects

     It is difficult to determine the precise value of the NFT (non fungible tokens) because this asset class is relatively new. It is worth pointing out that tangible works of art, such as a Rembrandt or physical collectors' items such as NBA player cards, have specific values. In practice, NFT investors wishing to purchase NFT tokens may find it difficult to decide whether a particular form of investment is of interest. To date, many NFT Token products are available on the market. In this respect, fundamental principles have been developed to help establish that NFT carries value. Their attractiveness is determined by the following factors: 

  1. Rarity rank– is an indicator that literally translates into how rare and "difficult to acquire" a specific NFT token is. Good examples of rarity are first of their kind works of art created by a famous digital artist or NFT created by a renowned celebrity. Another factor which indicates rarity is the effect that NFT technology provides in a given sector. 
  2. Usefulness – The usefulness of non fungible tokens results from its actual use, both in the physical and digital world. For example, some NFT are more than collectors' items because they can be used in games to create virtual characters, lands, etc. 

The above-mentioned feature of NFT gives them immediate value, which grows in time. An example of NFT solutionsare Euro 2020 NFT tickets, Collector's Cards such as Geralt of Rivia in the card game “The Witcher Universe Gwent”.

  1. Tangibility – Some NFT are linked to objects in the real world, which also for them to be verified based on their physical characteristics. In principle, anything can be supported by the NFT in order to consolidate ownership rights. However, the value of such an object is determined by its practicality, rarity and personal satisfaction of the users.

Traits, the individual attributes of an NFT 

     Traits are individual features that are an important part of any strategy for the nft rarity of a particular NFT project. When analyzing the various features for given NFT tokens, it is worth considering that it would be a good idea to have at least 150 different attributes. In practice, however, the more diverse the characteristics of a project are, the more unique it will be. Traits can be divided into: 

  1. Feature categories – their main purpose is to help organize all unique features into a specific category. 
  1. Unique features – it is not possible to develop an appropriate rarity strategy for a project without its individual characteristics. Characteristics belong to specific categories. Individual characteristics are an important part of each strategy regarding NFT rarity and are the basis for many related projects. 
  1. Extremely rare features – a set of unique features should always contain rare features. It should be noted that they should not exceed more than 1 percent of the total NFT project volume. 

As you can see, the three basic elements make NFT tokens original. However, specialist rarity tools have been developed to help us evaluate a project. 

NFT rarity tools

NFT rarity tools

Nft rarity can be describe by tools. Below are the new technologies that have received positive reviews from NFT users. The most popular rarity tools for are: 

Momentranks.com

Momentranks makes acquiring NFT tokens easy. This is a great source of accurate NFT token valuations, market tools, sales levels and market capitalization analysis. 

Icy.Tools  

This is a basic tool for tracking NFT. First-time users prefer this solution because of its transparency, simplicity and the ability to quickly analyze the market.

Moby 

Moby is an unpopular but powerful site that provides real-time data and statistics on multiple NFT tokens. This information can help investors monitor assets and make faster decisions regarding new trends.

Traitsniper 

Traitsniper is another website that can be used to analyze new NFT projects. With its minimal features, it focuses on analyzing ongoing and upcoming projects and detecting NFT metadata for good investment potential based on their Traits. 

Rarytassniffer 

Offers the latest rankings of fresh NFT designs based on their rarity. The rarity tools provides information on the latest NFT collections and historical collection data.

NFT rarity tools

What is the difference between NFT and cryptocurrency?

     NFT collections and cryptocurrency are based on the same technology – blockchain. The NFT markets are shaped in such a way that transactions can be made using cryptocurrency. However, let us remember that cryptocurrency and NFT are completely different products that have been developed for different purposes. Cryptocurrency is a means of payment which is intended to hold a specific value, to be used as exchange goods for other services, etc. NFT tokens can themselves be property and the right to a specific digital commodity. They are closer to a security, or shares, rather than cash. 

NFT space - How to purchase NFT collections?

     You can buy, sell, or trade with NFT. Transactions may take place on exchanges or on specific NFT markets. The creator of a token, or its current owner, determines the token price himself. It is also possible to conduct NFT auctions. In such a case, the bidders will decide on the price. Here are some examples of websites where are nft shop, end where you can purchase NFT or see nft rankings.

Fundation 

It is a market created and managed by the community. Access to it is only possible if you receive an invitation from one of the NFT investors of this market.

Nifty Gateway

It is an art-oriented NFT market. Its main goal is to work with renowned companies, athletes, and artists.

OpenSea

It is one of the most powerful and pioneering sectors where NFT can be found and purchased. It includes a range of collectors' items and there's something here for everyone!

Rarible

It offers a range of NFT, with art as a priority. The platform created its own token, the RARI, which is used to reward its members for specific activities. 

SuperRare

This place creates a market that offers and at the same time supervises the NFT sector. There are many tokens here that are worthy of attention.

The registration process on each of the above-mentioned platforms may vary from market to market. The basic principle is similar – you buy Non Fungible Token with a cryptocurrency such as ether, although the price can also be stated in dollars. The total cost of the transaction depends on where we buy NFT and at what rate. 

What are the dangers involved with purchasing NFT?

     NFT trading is a technical process that can be misunderstood. As such, some people who want to purchase NFT are unaware that any interaction with blockchain involves fees. In addition, investors must be aware of whether a solid and fair entity is behind the NFT. Otherwise, we may be afraid of losing money. Interestingly, some people buying NFT do this by using bots, as thanks to them their transactions are fast and fully automated. Unfortunately this leads to situations, where new users who wish to purchase NFT may be too late, as they were slower than a robot.  

Summary 

     NFTs market are modern forms of capital investment in a product, the link between the digital world and the real world. It is worth knowing the rules and tools that will make us more aware of what we want to invest in. The tools used to assess the rarity and the design of Traits will certainly help us with that! We should also remember that, before making an  investment decision, we should familiarize ourselves with the creativity and achievements of the NFT creator, regardless if a single person or an entire team is behind the project.

NFT collection, as well as upcoming NFT projects, are an opportunity for NFT investment. It is important to remember that NFT collectibles should be evaluated on the basis of their rarity rank. The total rarity score of the NFT will show us how interesting and original the project is. NFT investment, purchasing NFT, or NFT drops should be pre-checked and analyzed using NFT tools, global NFT project rankings and NFT news. Afterwards we should run the entire process through NFT analysis based on the NFT we wish to purchase. Let us remember that every project must be checked thoroughly and professionally, as the safety of our finances is paramount.

Tagi

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Aethir Tokenomics – Case Study

Kajetan Olas

22 Nov 2024
Aethir Tokenomics – Case Study

Authors of the contents are not affiliated to the reviewed project in any way and none of the information presented should be taken as financial advice.

In this article we analyze tokenomics of Aethir - a project providing on-demand cloud compute resources for the AI, Gaming, and virtualized compute sectors.
Aethir aims to aggregate enterprise-grade GPUs from multiple providers into a DePIN (Decentralized Physical Infrastructure Network). Its competitive edge comes from utlizing the GPUs for very specific use-cases, such as low-latency rendering for online games.
Due to decentralized nature of its infrastructure Aethir can meet the demands of online-gaming in any region. This is especially important for some gamer-abundant regions in Asia with underdeveloped cloud infrastructure that causes high latency ("lags").
We will analyze Aethir's tokenomics, give our opinion on what was done well, and provide specific recommendations on how to improve it.

Evaluation Summary

Aethir Tokenomics Structure

The total supply of ATH tokens is capped at 42 billion ATH. This fixed cap provides a predictable supply environment, and the complete emissions schedule is listed here. As of November 2024 there are approximately 5.2 Billion ATH in circulation. In a year from now (November 2025), the circulating supply will almost triple, and will amount to approximately 15 Billion ATH. By November 2028, today's circulating supply will be diluted by around 86%.

From an investor standpoint the rational decision would be to stake their tokens and hope for rewards that will balance the inflation. Currently the estimated APR for 3-year staking is 195% and for 4-year staking APR is 261%. The rewards are paid out weekly. Furthermore, stakers can expect to get additional rewards from partnered AI projects.

Staking Incentives

Rewards are calculated based on the staking duration and staked amount. These factors are equally important and they linearly influence weekly rewards. This means that someone who stakes 100 ATH for 2 weeks will have the same weekly rewards as someone who stakes 200 ATH for 1 week. This mechanism greatly emphasizes long-term holding. That's because holding a token makes sense only if you go for long-term staking. E.g. a whale staking $200k with 1 week lockup. will have the same weekly rewards as person staking $1k with 4 year lockup. Furthermore the ATH staking rewards are fixed and divided among stakers. Therefore Increase of user base is likely to come with decrease in rewards.
We believe the main weak-point of Aethirs staking is the lack of equivalency between rewards paid out to the users and value generated for the protocol as a result of staking.

Token Distribution

The token distribution of $ATH is well designed and comes with long vesting time-frames. 18-month cliff and 36-moths subsequent linear vesting is applied to team's allocation. This is higher than industry standard and is a sign of long-term commitment.

  • Checkers and Compute Providers: 50%
  • Ecosystem: 15%
  • Team: 12.5%
  • Investors: 11.5%
  • Airdrop: 6%
  • Advisors: 5%

Aethir's airdrop is divided into 3 phases to ensure that only loyal users get rewarded. This mechanism is very-well thought and we rate it highly. It fosters high community engagement within the first months of the project and sets the ground for potentially giving more-control to the DAO.

Governance and Community-Led Development

Aethir’s governance model promotes community-led decision-making in a very practical way. Instead of rushing with creation of a DAO for PR and marketing purposes Aethir is trying to make it the right way. They support projects building on their infrastructure and regularly share updates with their community in the most professional manner.

We believe Aethir would benefit from implementing reputation boosted voting. An example of such system is described here. The core assumption is to abandon the simplistic: 1 token = 1 vote and go towards: Votes = tokens * reputation_based_multiplication_factor.

In the attached example, reputation_based_multiplication_factor rises exponentially with the number of standard deviations above norm, with regard to user's rating. For compute compute providers at Aethir, user's rating could be replaced by provider's uptime.

Perspectives for the future

While it's important to analyze aspects such as supply-side tokenomics, or governance, we must keep in mind that 95% of project's success depends on demand-side. In this regard the outlook for Aethir may be very bright. The project declares $36M annual reccuring revenue. Revenue like this is very rare in the web3 space. Many projects are not able to generate any revenue after succesfull ICO event, due to lack fo product-market-fit.

If you're looking to create a robust tokenomics model and go through institutional-grade testing please reach out to contact@nextrope.com. Our team is ready to help you with the token engineering process and ensure your project’s resilience in the long term.

Tagi

Quadratic Voting in Web3

Kajetan Olas

04 Dec 2024
Quadratic Voting in Web3

Decentralized systems are reshaping how we interact, conduct transactions, and govern online communities. As Web3 continues to advance, the necessity for effective and fair voting mechanisms becomes apparent. Traditional voting systems, such as the one-token-one-vote model, often fall short in capturing the intensity of individual preferences, which can result in centralization. Quadratic Voting (QV) addresses this challenge by enabling individuals to express not only their choices but also the strength of their preferences.

Table of Contents

In QV, voters are allocated a budget of credits that they can spend to cast votes on various issues. The cost of casting multiple votes on a single issue increases quadratically, meaning that each additional vote costs more than the last. This system allows for a more precise expression of preferences, as individuals can invest more heavily in issues they care deeply about while conserving credits on matters of lesser importance.

Understanding Quadratic Voting

Quadratic Voting (QV) is a voting system designed to capture not only the choices of individuals but also the strength of their preferences. In most DAO voting mechanisms, each person typically has one vote per token, which limits the ability to express how strongly they feel about a particular matter. Furthermore, QV limits the power of whales and founding team who typically have large token allocations. These problems are adressed by making the cost of each additional vote increase quadratically.

In QV, each voter is given a budget of credits or tokens that they can spend to cast votes on various issues. The key principle is that the cost to cast n votes on a single issue is proportional to the square of n. This quadratic cost function ensures that while voters can express stronger preferences, doing so requires a disproportionately higher expenditure of their voting credits. This mechanism discourages voters from concentrating all their influence on a single issue unless they feel very strongly about it. In the context of DAOs, it means that large holders will have a hard-time pushing through with a proposal if they'll try to do it on their own.

Practical Example

Consider a voter who has been allocated 25 voting credits to spend on several proposals. The voter has varying degrees of interest in three proposals: Proposal A, Proposal B, and Proposal C.

  • Proposal A: High interest.
  • Proposal B: Moderate interest.
  • Proposal C: Low interest.

The voter might allocate their credits as follows:

Proposal A:

  • Votes cast: 3
  • Cost: 9 delegated tokens

Proposal B:

  • Votes cast: 2
  • Cost: 4 delegated tokens

Proposal C:

  • Votes cast: 1
  • Cost: 1 delegated token

Total delegated tokens: 14
Remaining tokens: 11

With the remaining tokens, the voter can choose to allocate additional votes to the proposals based on their preferences or save for future proposals. If they feel particularly strong about Proposal A, they might decide to cast one more vote:

Additional vote on Proposal A:

  • New total votes: 4
  • New cost: 16 delegated tokens
  • Additional cost: 16−9 = 7 delegated tokens

Updated total delegated tokens: 14+7 = 21

Updated remaining tokens: 25−21 = 425 - 21 = 4

This additional vote on Proposal A costs 7 credits, significantly more than the previous vote, illustrating how the quadratic cost discourages excessive influence on a single issue without strong conviction.

Benefits of Implementing Quadratic Voting

Key Characteristics of the Quadratic Cost Function

  • Marginal Cost Increases Linearly: The marginal cost of each additional vote increases linearly. The cost difference between casting n and n−1 votes is 2n−1.
  • Total Cost Increases Quadratically: The total cost to cast multiple votes rises steeply, discouraging voters from concentrating too many votes on a single issue without significant reason.
  • Promotes Egalitarian Voting: Small voters are encouraged to participate, because relatively they have a much higher impact.

Advantages Over Traditional Voting Systems

Quadratic Voting offers several benefits compared to traditional one-person-one-vote systems:

  • Captures Preference Intensity: By allowing voters to express how strongly they feel about an issue, QV leads to outcomes that better reflect the collective welfare.
  • Reduces Majority Domination: The quadratic cost makes it costly for majority groups to overpower minority interests on every issue.
  • Encourages Honest Voting: Voters are incentivized to allocate votes in proportion to their true preferences, reducing manipulation.

By understanding the foundation of Quadratic Voting, stakeholders in Web3 communities can appreciate how this system supports more representative governance.

Conclusion

Quadratic voting is a novel voting system that may be used within DAOs to foster decentralization. The key idea is to make the cost of voting on a certain issue increase quadratically. The leading player that makes use of this mechanism is Optimism. If you're pondering about the design of your DAO, we highly recommend taking a look at their research on quadratic funding.

If you're looking to create a robust governance model and go through institutional-grade testing please reach out to contact@nextrope.com. Our team is ready to help you with the token engineering process and ensure that your DAO will stand out as a beacon of innovation and resilience in the long term.

Tagi