A Hodlrs Guide to True NFT Rarity
The best rarity tool doesn’t depend on primitive statistics to determine value.
It does, however, take into account what you value most.
At long last, NFT collectors are realizing that it’s ridiculous for a rarity tool to depend solely on scarcity to determine the value of an NFT.
It’s outdated.
What I mean is the current way of measuring rarity is flawed. It relies on an old model of simple frequency statistics. And unfortunately, collectors have had no choice but to use tools that apply this model as a proxy to see how valuable a token is.
Let’s take a step back first to clear up some confusion between rarity and value.
People tend to think that just because something is rare, then it must automatically be valuable. That is not the case with NFTs. There needs to be a group of people that places value onto the rare item.
And here lies the issue. The problem with primitive rarity tools is that they weigh all of the elements in a collection as the same (which is unfair to everyone).
They don’t take into account the levels of demand and feedback from the community that find certain elements more valuable than others.
So a community can be excited about a particular set of traits for their NFTs, but the current tools on the market have no way of taking that excitement into account. This makes it hard to assess the real value.
The Growing Demand for BeyondRarity
What makes BeyondRarity the rarity tool in a class of its own is not just its features. Rather, it’s the understanding of community baked right into its design.
Many projects run into issues in which NFTs in their collections are measured based on simple frequency statistics.
For example, let’s say you have a collection in which the avatars have a variety of traits you find valuable. But even the most well-known tools ruin this experience and dumb it all down.
Think about the amount of work creators put into key elements of their NFTs with the idea that their community will find value in it.
The old approach doesn’t factor in any preferences for certain elements over others.
For example, a tool would only determine “rarity” of the collection by weighing the value of something as simple (and probably not that important) as the background color the same as well…everything else. And then sum it all up.
So imagine the background color weighing the same as an outfit. That’s outrageous, robs you of a great experience and possibly better valuations!
BeyondRarity puts control back into the hands of creators and communities
BeyondRarity, however, allows founders to act as a proxy for the community by giving them the ability to establish the traits and features of their collection they believe to be most valuable.
This valuation consists of three categories: trait weights, vibes, and utility. You can read more about these here.
One of the cool features built in is you have the ability to toggle between how BeyondRarity measures an NFT. Between Utility or Trait Weights/ Vibes.
Trait weights
Think about the different traits a particular NFT carries. Clothes, objects being held, accessories, colors, etc. Some of those traits may be more or less meaningful than others.
So now their weighting can be defined based on what you want and do not have to be all equal.
In the example below, lighter-skinned individuals are more rare in the collection. Should that make them more valuable? Not if TribeX has anything to do with it.
Vibes
Vibes are a measure of an NFTs metadata within a given set of a collection. This means that the project creator can define different themes under which meta data of various NFTs in their collection falls into.
This allows you to create a different kind of rarity in which the single elements themselves can be more diverse. Now you can define different combinations of things that matter and still retain a sense of value.
In the Wall St Fam example below, if you have 2 or more of any the sports-themed elements, outfits, face paint and more, the NFT qualifies for the “Athlete” Vibe. There are 100+ themes in the collection, some with over several dozen possible elements that will constitute a vibe.
Utility
This category is BIG. No other tool is able to measure the utility of an NFT which is vital to the success of a project.
Simple frequency isn’t helpful in determining rarity because members don’t care about the frequency of a particular element. They care about the element itself.
In this Freaks N’ Guilds example below, the “rarity” of low Health doesn’t matter when considering the valuation of the NFT. Players will always pick the NFT with the higher health rating over the token that has a rare health rating.
The reason is an NFT with high health rating has real value inside the play-to-earn game. And the fact that low health is rare is completely irrelevant in this situation.
The creator defines the actual use of the NFT in their collection, giving it a numerical, binary, or categorical value. A good example is an NFT for play-to-earn games.
Why You Should Be Excited
While the idea behind BeyondRarity is simple, the implications are profound. Imagine eliminating the high cost of using a rarity tool and at the same give your project the opportunity to concretely show off its true value.
This is a game changer not only for project creators, but for hodlrs as well. What happens is nearly overnight value creation for meaningful NFT projects in any given community.
This is a bold shift.
The understanding of scarcity and rarity is defined. And the conversations within communities will change. What traits are important? What do you consider cool? How do you feel about the vibe between different NFTs?
We’re all going to find out how this really changes the game of NFT valuations. And we’ll iterate on this product with improvements every step of the way.
The implications of putting the power back into the hands of project stakeholders is . . .inspiring to say the least.
Next Steps
To all creators — check out https://beyondrarity.com. If you see your project listed, we’ve already integrated your publicly available metadata.
Let us know if you don’t see your project listed. You can do this by filling out the following form. And we’ll reach out to you with next steps to add your custom info.
