Foundation Announces Dynamic NFT Pricing Feature
The NFT Marketplace Foundation has launched Dynamic Pricing, a new, automated feature on the platform meant to simplify pricing for creators, according to information shared exclusively with nft now. Dynamic Pricing leverages a Rebate Dutch Auction mechanism, a pricing model designed by the Foundation to help creators navigate the complex and often daunting process of pricing their creations.
Greater control and transparency
It can be difficult to estimate the price of an NFT that creates in Web3; if the price is too high, it can lead to slow or (in some cases) no sales at all. Conversely, setting the price too low can lead to a quick sell-out, leaving creators feeling they could have earned more for their work.
Let the market decide.
⏱️️8. June 2023 pic.twitter.com/wqASJcL1Rv
— Foundation (@foundation) 5 June 2023
The uncertainty surrounding this facet of the industry adds an unfortunate element of unpredictability to a market already known for its volatility and ambiguity. By allowing the market to influence pricing, Dynamic Pricing takes into account variables that creators may struggle to balance, including personal profit, collector availability and experience, as well as the likelihood of a sellout. In this way, the Foundation aims to offer creators greater control and transparency over their sales.
The feature is a type of Dutch auction, a sales mechanism where the price of an item is reduced until a buyer is found. The Foundation’s Rebate Dutch Auction uses this idea, allowing creators to list their NFTs at a higher starting price that gradually decreases over time. Collectors can choose to buy at any time, choosing a price they find most reasonable. To keep things as fair as possible, individuals who paid more than others in the process of the auction can claim a discount if it ends at a lower price or is sold out.
In good company
Foundation is far from the only Web3 platform experimenting with this type of NFT pricing. Companies such as Fellowship and Bright moments are known to successfully include this type of NFT pricing for collections and premiere NFT launches on their platforms as well.
Despite the effectiveness of Rebate Dutch Auctions in Web3, they are sometimes seen as both intricate and intimidating processes to engage in, especially for collectors. The Foundation hopes the new feature helps users see the experience as an intuitive option for engaging with their collector base.
