Rarity
Understanding the Rarity of Your NFT
----
There are 27 watches in the BASIX watch collection. Each watch is a unique artistic rendering that has been hand-drawn, digitized and individually minted on a blockchain using ERC-721 Non-Fungible Token (NFT) standard. All watches (NFTs) in the collection contain features (band pattern, band style, band color, face color, case color, case type and background color) that introduce variation between the individual watches.
While all watches have the same seven features, each feature can vary in its design (color, structure and pattern) across watches. The variation within each feature is called a “trait.” The frequency of a given feature trait is variable and the number of traits can differ amongst features, meaning that certain traits occur less frequently than others in the collection. For example, in the BASIX collection there are 6/27 watches with a black face (22%) and 4/27 with a blue face (14.8%), while 8/27 watches have a solid band pattern (29.8%) and 4/27 have a wave pattern (14.8%) etc. A given watch can have many possible combinations of feature traits.
The rarity of a watch in the collection can be mathematically expressed by the Rarity Index, and this quantity is computed by knowing the distribution of each trait for each feature in the collection of 27 watches. For each watch, the probabilities for the seven features are multiplied to derive a rarity value for the feature-trait combination and is expressed as a percentage. The rarity value is then transformed into a Z-score to derive the Rarity Index. Each watch in the collection has a unique Rarity Index, representing how unique it is from all of the other watches in the collection. Mathematically, larger z-scores represents how many standard deviations a watch is from the mean watch combination.
The Rarity Index distribution amongst watches in the BASIX collection is graphed below.
----
Rarity Distribution for BASIX Watch Collection
The x-axis of the graph (histogram) represents the chance of obtaining a given combination of watch feature traits for the 27 watches in the collection or the Rarity Index. Smaller Rarity Index values reflect rarer combinations of feature traits. Watch features vary according to different feature traits that include band pattern, band style, band color, face color, case color, case type and background color.
The y-axis of the graph shows the absolute number of watches in the collection of 27 that fall within a given probability range. The chance of finding a particular combination of watch features is less likely from left to right along the x-axis of the graph. There are 13 more common watches and one ultra-rare watch in the BASIX collection.
Pricing
The Science Behind Our Pricing
----
The initial ask price for the NFT in WETH is derived based on a combination of a linear bonding curve formula, Rarity Index and the spot price of ETH in USD at the time of minting. This is mathematically expressed by the equation below.