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

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.