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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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Token Engineering Process

Kajetan Olas

13 Apr 2024
Token Engineering Process

Token Engineering is an emerging field that addresses the systematic design and engineering of blockchain-based tokens. It applies rigorous mathematical methods from the Complex Systems Engineering discipline to tokenomics design.

In this article, we will walk through the Token Engineering Process and break it down into three key stages. Discovery Phase, Design Phase, and Deployment Phase.

Table of Contents

Discovery Phase of Token Engineering Process

The first stage of the token engineering process is the Discovery Phase. It focuses on constructing high-level business plans, defining objectives, and identifying problems to be solved. That phase is also the time when token engineers first define key stakeholders in the project.

Defining the Problem

This may seem counterintuitive. Why would we start with the problem when designing tokenomics? Shouldn’t we start with more down-to-earth matters like token supply? The answer is No. Tokens are a medium for creating and exchanging value within a project’s ecosystem. Since crypto projects draw their value from solving problems that can’t be solved through TradFi mechanisms, their tokenomics should reflect that. 

The industry standard, developed by McKinsey & Co. and adapted to token engineering purposes by Outlier Ventures, is structuring the problem through a logic tree, following MECE.
MECE stands for Mutually Exclusive, Collectively Exhaustive. Mutually Exclusive means that problems in the tree should not overlap. Collectively Exhaustive means that the tree should cover all issues.

In practice, the “Problem” should be replaced by a whole problem statement worksheet. The same will hold for some of the boxes.
A commonly used tool for designing these kinds of diagrams is the Miro whiteboard.

Identifying Stakeholders and Value Flows in Token Engineering

This part is about identifying all relevant actors in the ecosystem and how value flows between them. To illustrate what we mean let’s consider an example of NFT marketplace. In its case, relevant actors might be sellers, buyers, NFT creators, and a marketplace owner. Possible value flow when conducting a transaction might be: buyer gets rid of his tokens, seller gets some of them, marketplace owner gets some of them as fees, and NFT creators get some of them as royalties.

Incentive Mechanisms Canvas

The last part of what we consider to be in the Discovery Phase is filling the Incentive Mechanisms Canvas. After successfully identifying value flows in the previous stage, token engineers search for frictions to desired behaviors and point out the undesired behaviors. For example, friction to activity on an NFT marketplace might be respecting royalty fees by marketplace owners since it reduces value flowing to the seller.

source: https://www.canva.com/design/DAFDTNKsIJs/8Ky9EoJJI7p98qKLIu2XNw/view#7

Design Phase of Token Engineering Process

The second stage of the Token Engineering Process is the Design Phase in which you make use of high-level descriptions from the previous step to come up with a specific design of the project. This will include everything that can be usually found in crypto whitepapers (e.g. governance mechanisms, incentive mechanisms, token supply, etc). After finishing the design, token engineers should represent the whole value flow and transactional logic on detailed visual diagrams. These diagrams will be a basis for creating mathematical models in the Deployment Phase. 

Token Engineering Artonomous Design Diagram
Artonomous design diagram, source: Artonomous GitHub

Objective Function

Every crypto project has some objective. The objective can consist of many goals, such as decentralization or token price. The objective function is a mathematical function assigning weights to different factors that influence the main objective in the order of their importance. This function will be a reference for machine learning algorithms in the next steps. They will try to find quantitative parameters (e.g. network fees) that maximize the output of this function.
Modified Metcalfe’s Law can serve as an inspiration during that step. It’s a framework for valuing crypto projects, but we believe that after adjustments it can also be used in this context.

Deployment Phase of Token Engineering Process

The Deployment Phase is final, but also the most demanding step in the process. It involves the implementation of machine learning algorithms that test our assumptions and optimize quantitative parameters. Token Engineering draws from Nassim Taleb’s concept of Antifragility and extensively uses feedback loops to make a system that gains from arising shocks.

Agent-based Modelling 

In agent-based modeling, we describe a set of behaviors and goals displayed by each agent participating in the system (this is why previous steps focused so much on describing stakeholders). Each agent is controlled by an autonomous AI and continuously optimizes his strategy. He learns from his experience and can mimic the behavior of other agents if he finds it effective (Reinforced Learning). This approach allows for mimicking real users, who adapt their strategies with time. An example adaptive agent would be a cryptocurrency trader, who changes his trading strategy in response to experiencing a loss of money.

Monte Carlo Simulations

Token Engineers use the Monte Carlo method to simulate the consequences of various possible interactions while taking into account the probability of their occurrence. By running a large number of simulations it’s possible to stress-test the project in multiple scenarios and identify emergent risks.

Testnet Deployment

If possible, it's highly beneficial for projects to extend the testing phase even further by letting real users use the network. Idea is the same as in agent-based testing - continuous optimization based on provided metrics. Furthermore, in case the project considers airdropping its tokens, giving them to early users is a great strategy. Even though part of the activity will be disingenuine and airdrop-oriented, such strategy still works better than most.

Time Duration

Token engineering process may take from as little as 2 weeks to as much as 5 months. It depends on the project category (Layer 1 protocol will require more time, than a simple DApp), and security requirements. For example, a bank issuing its digital token will have a very low risk tolerance.

Required Skills for Token Engineering

Token engineering is a multidisciplinary field and requires a great amount of specialized knowledge. Key knowledge areas are:

  • Systems Engineering
  • Machine Learning
  • Market Research
  • Capital Markets
  • Current trends in Web3
  • Blockchain Engineering
  • Statistics

Summary

The token engineering process consists of 3 steps: Discovery Phase, Design Phase, and Deployment Phase. It’s utilized mostly by established blockchain projects, and financial institutions like the International Monetary Fund. Even though it’s a very resource-consuming process, we believe it’s worth it. Projects that went through scrupulous design and testing before launch are much more likely to receive VC funding and be in the 10% of crypto projects that survive the bear market. Going through that process also has a symbolic meaning - it shows that the project is long-term oriented.

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.

FAQ

What does token engineering process look like?

  • Token engineering process is conducted in a 3-step methodical fashion. This includes Discovery Phase, Design Phase, and Deployment Phase. Each of these stages should be tailored to the specific needs of a project.

Is token engineering meant only for big projects?

  • We recommend that even small projects go through a simplified design and optimization process. This increases community's trust and makes sure that the tokenomics doesn't have any obvious flaws.

How long does the token engineering process take?

  • It depends on the project and may range from 2 weeks to 5 months.

Tagi

What is Berachain? 🐻 ⛓️ + Proof-of-Liquidity Explained

Karolina

18 Mar 2024
What is Berachain? 🐻 ⛓️ + Proof-of-Liquidity Explained

Enter Berachain: a high-performance, EVM-compatible blockchain that is set to redefine the landscape of decentralized applications (dApps) and blockchain services. Built on the innovative Proof-of-Liquidity consensus and leveraging the robust Polaris framework alongside the CometBFT consensus engine, Berachain is poised to offer an unprecedented blend of efficiency, security, and user-centric benefits. Let's dive into what makes it a groundbreaking development in the blockchain ecosystem.

Table of Contents

What is Berachain?

Overview

Berachain is an EVM-compatible Layer 1 (L1) blockchain that stands out through its adoption of the Proof-of-Liquidity (PoL) consensus mechanism. Designed to address the critical challenges faced by decentralized networks. It introduces a cutting-edge approach to blockchain governance and operations.

Key Features

  • High-performance Capabilities. Berachain is engineered for speed and scalability, catering to the growing demand for efficient blockchain solutions.
  • EVM Compatibility. It supports all Ethereum tooling, operations, and smart contract languages, making it a seamless transition for developers and projects from the Ethereum ecosystem.
  • Proof-of-Liquidity.This novel consensus mechanism focuses on building liquidity, decentralizing stake, and aligning the interests of validators and protocol developers.

MUST READ: Docs

EVM-Compatible vs EVM-Equivalent

EVM-Compatible

EVM compatibility means a blockchain can interact with Ethereum's ecosystem to some extent. It can interact supporting its smart contracts and tools but not replicating the entire EVM environment.

EVM-Equivalent

An EVM-equivalent blockchain, on the other hand, aims to fully replicate Ethereum's environment. It ensures complete compatibility and a smooth transition for developers and users alike.

Berachain's Position

Berachain can be considered an "EVM-equivalent-plus" blockchain. It supports all Ethereum operations, tooling, and additional functionalities that optimize for its unique Proof-of-Liquidity and abstracted use cases.

Berachain Modular First Approach

At the heart of Berachain's development philosophy is the Polaris EVM framework. It's a testament to the blockchain's commitment to modularity and flexibility. This approach allows for the easy separation of the EVM runtime layer, ensuring that Berachain can adapt and evolve without compromising on performance or security.

Proof Of Liquidity Overview

High-Level Model Objectives

  • Systemically Build Liquidity. By enhancing trading efficiency, price stability, and network growth, Berachain aims to foster a thriving ecosystem of decentralized applications.
  • Solve Stake Centralization. The PoL consensus works to distribute stake more evenly across the network, preventing monopolization and ensuring a decentralized, secure blockchain.
  • Align Protocols and Validators. Berachain encourages a symbiotic relationship between validators and the broader protocol ecosystem.

Proof-of-Liquidity vs Proof-of-Stake

Unlike traditional Proof of Stake (PoS), which often leads to stake centralization and reduced liquidity, Proof of Liquidity (PoL) introduces mechanisms to incentivize liquidity provision and ensure a fairer, more decentralized network. Berachain separates the governance token (BGT) from the chain's gas token (BERA) and incentives liquidity through BEX pools. Berachain's PoL aims to overcome the limitations of PoS, fostering a more secure and user-centric blockchain.

Berachain EVM and Modular Approach

Polaris EVM

Polaris EVM is the cornerstone of Berachain's EVM compatibility, offering developers an enhanced environment for smart contract execution that includes stateful precompiles and custom modules. This framework ensures that Berachain not only meets but exceeds the capabilities of the traditional Ethereum Virtual Machine.

CometBFT

The CometBFT consensus engine underpins Berachain's network, providing a secure and efficient mechanism for transaction verification and block production. By leveraging the principles of Byzantine fault tolerance (BFT), CometBFT ensures the integrity and resilience of the Berachain blockchain.

Conclusion

Berachain represents a significant leap forward in blockchain technology, combining the best of Ethereum's ecosystem with innovative consensus mechanisms and a modular development approach. As the blockchain landscape continues to evolve, Berachain stands out as a promising platform for developers, users, and validators alike, offering a scalable, efficient, and inclusive environment for decentralized applications and services.

Resources

For those interested in exploring further, a wealth of resources is available, including the Berachain documentation, GitHub repository, and community forums. It offers a compelling vision for the future of blockchain technology, marked by efficiency, security, and community-driven innovation.

FAQ

How is Berachain different?

  • It integrates Proof-of-Liquidity to address stake centralization and enhance liquidity, setting it apart from other blockchains.

Is Berachain EVM-compatible?

  • Yes, it supports Ethereum's tooling and smart contract languages, facilitating easy migration of dApps.

Can it handle high transaction volumes?

  • Yes, thanks to the Polaris framework and CometBFT consensus engine, it's built for scalability and high throughput.

Tagi