Binance implements a ‘fair way’ to purchase NFTs
Due to the rise in demand, it’s increasingly harder to purchase nonfungible tokens (NFTs) on their initial launch. Because of the limited supply, and high demand, some NFT drops have sold out after only a few seconds of release.
With this, users who are interested in purchasing newly-released collections have no choice to wait until the initial owners decide to flip the NFTs for some profit, resulting in having to pay more or not being able to acquire any of the NFTs entirely.
Because of this, Binance introduced a subscription mechanism that lets everyone have an equal opportunity to buy newly-released NFTs on its marketplace. The marketplace’s new NFT Subscription Mechanism lets users have a higher chance of being able to purchase NFTs by limiting the allowed amount of NFT purchase per person and following a randomized buyer selection process.
Users who want to participate in NFT Subscription Mechanism sales need to follow a process that consists of four phases — preparation, subscription, calculation and distribution.
In the preparation phase, users have to hold the minimum amount of tokens required to participate. Binance notes that the minimum entry requirement is determined by the creators or project that will conduct the NFT sale.
The subscription phase comes next. Here, qualified participants will then be given participation tickets which will have purchase limits per user set by the NFT creators. The number of tickets received by a user will be the maximum amount of NFTs that can be purchased. However, users have the option to decide whether to use all or only a few of their tickets. Having more tickets doesn’t mean you will get the NFT. However, it will give you more chances to succeed in your purchase.
Related: Biggest NFT drops and sales in 2021
After this, the process moves forward to the calculation phase. This incorporates a randomized selection system to choose winning participation tickets from all who subscribed. The selected participants will be able to successfully purchase the NFTs. The final phase is the distribution, where the sale will proceed.
It’s undeniable that NFTs have grown immensely in recent months. With the global NFT sales volume approaching $20 billion, many speculate that NFTs may someday surpass even Bitcoin.