Justin Roiland, the renowned co-creator of the Rick and Morty animated series, is working with two researchers from crypto investment firm, Paradigm, on a new NFT sales pricing mechanism called CRISP.
According to the protocol designer at Paradigm, Dave White, this new concept would make it possible for a project to sell large quantities of NFTs seamlessly over a long period of time at stable prices, depending on the demand in the market.
CRISP tracks the rate at which NFTs are being sold, and compares it to a target rate. When NFTs are being sold too quickly relative to the target rate, we want to be able to adjust prices quickly […] the higher the sales rate compared to the target rate, the faster we want to raise prices.
With CRISP, the “buy it now” prices of NFTs would increase or decrease based on demand. On the other hand, CRISP does not want to hastily lower prices when demand decreases. Instead, it would decay prices slowly over time to support the current price point.
We want to decay prices slowly over time, because we managed to hit the target rate at previous prices and we don’t want to drop prices more than we have to.
NFTs have driven significant activity in the past year, with OpenSea’s monthly trading volume already surpassing the $3.5 billion mark, BTC PEERS reported.
The CRISP (Constant Rate Issuance Sales Protocol) mechanism was inspired by lackluster user experiences during NFT auctions, and its researchers opined in a post that "auctions cost gas, and we want users to be able to buy one of these NFTs at any time, without having to wait for an auction to terminate."
Dave White provided an example of how CRISP works via Twitter. Users have likened the mechanism to a Dutch auction market system, in which the price of an item starts high and is then successively lowered until it gets a bid or reaches a reserve price.