In Brief:
- ‘Subscription Mechanism,’ allows users to buy exclusive NFTs in a fair and equal manner.
- Users must hold a minimum amount of tokens before they are allocated ‘Participation Tickets’ to participate in the NFT sale.
- This updated feature consists of four phases: Preparation, Subscription, Calculation and Distribution.
Binance NFT, the cryptocurrency exchange’s Non-Fungible Token trading arm, has developed a new tool called the Subscription Mechanism to provide ‘fair and equitable’ access to all users who want to invest in digital collectibles.
Binance established a subscription system that allows everyone on the platform to buy newly launched NFTs at the same time. By limiting the quantity of NFTs that may be purchased per person and using a randomised buyer selection procedure, the marketplace’s new NFT Subscription Mechanism guarantees users a better chance of being able to purchase NFTs.
The introduction of NFTs was perhaps one of the most closely followed developments in the blockchain environment in the previous year. With the high demand for digital works of art registered on the blockchain, creators are finding it difficult to keep up with the demand. As well-publicized NFT collections generally sell out at launch, this often culminates in a rat race at launch, leaving many investors unserved.
The Preparation stage, the Subscription Stage, the Calculation Stage, and the Distribution Stage are the four distinct stages of the Subscription Mechanism model.
Before being assigned ‘Participation Tickets’ to participate in the NFT sale, users must have a minimum amount of tokens to enter the Subscription Mechanism. The NFT owners define the minimum allocation, which is not set in stone.
The preparation stage is when potential participants express interest in the collection that they hope to launch. The minimal entrance criteria are set by the creators or project that will execute the NFT sale, according to Binance.
If a user’s balance fulfills the minimal criteria, they are moved to the Subscription phase. Each user will then receive Participation Tickets according to the ‘purchase limit per user’ set by the NFT project/creator.
The calculation phase follows the subscription phase, and during this time, Binance NFT’s system will select winning tickets at random from all subscribed participation tickets. The final process is the Distribution stage, which involves sending all acquired NFTs to customers’ wallet addresses after deducting the required amount of BNB.
NFTs are cryptographically unique tokens that represent digital art, music, tweet, and many more. NFTs are becoming increasingly difficult to obtain on their initial launch due to increased demand. Binance launched its own marketplace for creating and trading NFTs last year owing to the huge development in the NFT market.
