Digital asset platform Rarible has raised an undisclosed amount of funding from blockchain investment firm Coinfund. The token platform will use the investment to develop a community-governed and blockchain-based marketplace for non-fungible tokens. These tokens can be anything ranging from game assets to art, but also festival tickets, digital insurances and other digital assets.
Rarible allows creators to mint their creations onto the blockchain. The marketplace allows users to trade liquid intellectual properties and any digital content with licensing by using non-fungible tokens. Basically, a token could use give users access to music, movies or television series.
Recently the platform implemented the first steps of full community governance. Buyers and sellers of digital assets earn RARI tokens. These tokens can be used to buy other assets, but also give the owners voting rights. Eventually the marketplace will be controlled by the traders and creators that own RARI. The funding should help Rarible to create this.
Battle against wash trading
Rarible is considering to use platform fees to discourage wash trading. They want to make this the next step in creating a decentralized autonomous organization (DAO). Ultimately community governance is one of the biggest moves for Rarible.
Wash trading on Rarible happens, because both buyers and sellers earn RARI from their transactions. User who sell their art to themselves, have an easy way to make free RARI. However, there’s a community police pointing out wash trading. Those who wash trade, won’t receive any RARI at the end of the week. By introducing a trading fee for both the seller and buyer, wash traders would be losing money.