Pricing Mechanism of Non-fungible Token (NFT) Driven by Rarity Design

Wenze Xiong, Yetong Wang, Wanxin Li*, Jie Zhang, Hao Guo

*Corresponding author for this work

Research output: Chapter in Book or Report/Conference proceedingConference Proceedingpeer-review

1 Citation (Scopus)

Abstract

The non-fungible tokens (NFTs) are unique cryptocurrencies that exist on a blockchain and cannot be replicated. However, today's NFT market lacks a sensible pricing framework, which causes NFT price fluctuations to interfere with the investment market. The purpose of this research is to build the pricing mechanism for NFT, as it is directly related to the detailed traits of NFT. The rarity design serves as the driving force behind the proposed pricing mechanism. We present a prototype pricing and minting algorithm and implement it through a smart contract to assess both pricing accuracy and transaction performance. Our proposed mechanism employs specific parameters and data points related to NFT features, which could encompass floating-point values due to our integration of Ether within the regression formula. The experimental results showed that the rarity score of the features has a certain degree of impact on the NFT price.

Original languageEnglish
Title of host publicationProceedings - 2023 IEEE International Conference on Blockchain, Blockchain 2023
PublisherInstitute of Electrical and Electronics Engineers Inc.
Pages74-79
Number of pages6
ISBN (Electronic)9798350319293
DOIs
Publication statusPublished - 30 Jan 2024
Event6th IEEE International Conference on Blockchain, Blockchain 2023 - Hainan, China
Duration: 17 Dec 202321 Dec 2023

Publication series

NameProceedings - 2023 IEEE International Conference on Blockchain, Blockchain 2023

Conference

Conference6th IEEE International Conference on Blockchain, Blockchain 2023
Country/TerritoryChina
CityHainan
Period17/12/2321/12/23

Keywords

  • Blockchain
  • Non-fungible Token
  • Pricing
  • Smart Contract

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