- Binance develops a method that allows people to purchase rare NFTs with ease.
- The mechanism incorporates four steps to make the system fairer.
- As NFTs continue to grow, Binance is creating solutions around the ecosystem.
Binance has created a new mechanism to allow people to enable a fair system for purchasing NFTs.
Binance Introduces Subscription Mechanism
Binance, the world’s largest cryptocurrency exchange, has revealed a new system that will give all users a chance to purchase rare NFTs. The exchange has termed this system the “Subscription Mechanism.”
In a blog post, it was revealed that it was done in response to feedback from their customers. They added that updates were made to the Binance NFT platform monthly to better serve the desires of their customers.
“Our latest feature update introduces a new way for users to fairly participate in the latest drops and exclusive releases that we have to offer on Binance NFT,” said the exchange.
The exchange revealed that they were aware of the increasing difficulties faced by customers trying to purchase rare NFTs as the emerging ecosystem gets more attention and demand. As such, the majority of the community is being locked out of these opportunities.
Binance cited this as the primary reason for the new feature. The exchange said the “Subscription Mechanism” was built “to ensure that all users get an equal opportunity to participate in Binance NFT primary sales.”
Binance revealed that the mechanism had four stages in the system: preparation, subscription, calculation, and distribution.
In the first phase, the preparation phase, users have to hold a minimum amount of BNB set by the NFT creators to participate in the sale. If the user holds the minimum amount set by the NFT creator, the user can then move on to the subscription phase where they receive “Participation Tickets” limited by the purchase limit set by the NFT creators.
The blog revealed that these “participating tickets” determined the number of NFTs users could purchase in the sale. Users have the option to commit all or some of their “participating tickets” to the sale. The more tickets users have, the greater their chances are of purchasing the NFTs.
Binance disclosed to users that their “tokens will be locked according to the number of subscribed tickets and released/refunded in full after the distribution phase is completed.”
In the calculation stage, the exchange revealed that winning tickets would be selected at random and holders would be allowed to purchase the rare NFTs. Binance stated that in the last stage of distribution, users who purchased NFTs will have the balance deducted, and those who were not able to will get their funds refunded back to their spot accounts.
Binance’s Role In The Rise Of NFTs
Binance launched its NFT marketplace in June last year, and it has become the most centralized NFT marketplace since. Over 2 million NFTs are currently listed on the platform.
The marketplace has continuously improved to better the ecosystem, even supporting multiple chains. Binance’s participation in the market has certainly played a role in increasing trust in the new asset class that has seen trading volumes of over $20 billion.