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 Foundation to help creators navigate the complex and often intimidating process of pricing their creations.
Greater control and transparency
Appropriately estimating the price of an NFT can be tricky as a creator in Web3; if the price is too high, it could result in sluggish or (in some cases) no sales at all. Conversely, setting the price too low could lead to a rapid sell-out, leaving creators feeling they could have earned more for their work.
Let the market decide.
⏱️️June 8, 2023 pic.twitter.com/wqASJcL1Rv
— Foundation (@foundation) June 5, 2023
The uncertainty surrounding this facet of the industry adds an unhappy element of unpredictability to a market already known for its volatility and ambiguity. By permitting the market to influence the pricing, Dynamic Pricing takes into account variables that creators can struggle with balancing, including personal profit, collector accessibility, and experience, as well as the likelihood of a sell-out. In this way, Foundation aims to offer creators greater control and transparency over their sales.
The feature is a type of Dutch Auction, a selling mechanism in which the price of an item is reduced until a buyer is found. Foundation’s Rebate Dutch Auction employs this idea, allowing creators to list their NFTs at a higher starting price that gradually decreases over time. Collectors can opt to purchase at any point, 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 rebate if it concludes at a lower price or sells out.
In good company
Foundation is far from the only Web3 platform to experiment with this type of NFT pricing. Companies such as Fellowship and Bright Moments are known for successfully incorporating this type of NFT pricing for collections and premier NFT launches on their platforms as well.
Despite the efficacy of Rebate Dutch Auctions in Web3, they are sometimes viewed as both intricate and daunting processes to engage with, especially for collectors. Foundation hopes its new feature helps users view the experience as an intuitive option for engaging with their collector base.
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