As the NFT sector blew up in 2021, and the so-called non-fungible tokens got under the spotlight, countless artists, groups, companies and various other entities started getting involved with them, seeking to harness the power of tokenization of digital and physical assets alike. This, in turn, led to the need to make NFTs more available to anyone who might want to work with them, instead of requiring them to build them from scratch or hire developers who would do it for them.
As a result, various tools for NFT creations have been developed, with one of the most notable groups of tools coming from a project called RMRK (RMRK). The project, pronounced “remark,” is a set of standards developed and released on Kusama blockchain. The standards compose five “NFT lego” primitives, and putting the legos together allows users to create NFT systems of arbitrary complexity.
How Does RMRK (RMRK) work?
RMRK is a project that offers a set of the so-called “NFT legos” used for building a system of arbitrary complexity by NFT creators. This is essentially a set of standards on Kusama’s blockchain, which makes NFTs multi-chain, rich and interactive, forward-compatible, and eternally liquid.
There are five legos in total, which include Nested NFTs, On-chain emotes, multi-resource NFTs, conditional rendering, and NFTs as DAOs. Meanwhile, the project’s native RMRK token is rich with use cases that span throughout the entirety of its ecosystem.
Some of its intended uses are to prevent fungible token spam, using it for interactions with NFTs in the project’s ecosystem, serving as a currency in RMRK-related metaverses, offering governance rights, and other additional uses, such as curation in galleries, using it as collateral in DeFi protocols, and more.
The project has an interesting approach to solving the NFT issues, and the fact that it runs on Kusama’s experimental blockchain might mean that it would eventually be implemented on other chains as well, in order to prevent the same issues on their platforms.
What Problems Does RMRK (RMRK) Solve?
RMRK is a part of Kusama’s broader NFT strategy, and it was developed to solve several problems related to digital assets. Among the issues that the project can impact are:
Preventing fungible token spam
The first of the problems that RMRK solves is fungible token spam. NFTs are now highly interactive, and can emit various actions, send or equip items, change their state, and more. However, some of these NFTs could be unique, and too expensive for individuals to hold the entire token by themselves.
This is why some NFTs can be broken into a number of smaller fragments – fungible tokens, which can be used to issue DAO-like commands to NFTs. However, in order to break NFTs into fungible tokens, the owner will have to stake RMRK tokens, which will, in turn, prevent fungible token spam.
Using RMRK token to interact with the NFTs in the ecosystem
Another way to use the RMRK tokens is for interacting with NFTs in the project’s ecosystem. The project’s documents reveal that RMRK is intended to be used for minting, trading, and generally interacting with the NFTs in the ecosystem in a variety of ways.
Other uses
Finally, the token is also intended to be used for curation in galleries through the governance of platform-wide parameters. This may also lead to the use of RMRK in the RMRK-launched products that might not necessarily be related to NFTs, such as collateral in DeFi protocols such as Karura and others.
The token has a variety of use cases, with the possibility of it developing even more in due time. For now, however, it is safe to say that the token is closely tied to all RMRK-based products, including NFTs.
Benefits of RMRK (RMRK)
If you were interested in learning what benefits the RMRK token can offer to a regular user, there are several worth mentioning. For example:
Currency in the RMRK metaverse(s)
Late 2021 and early 2022 have brought forth a massive new crypto trend – the metaverse. Metaverse has already existed for years, but right now, it became a hot topic — likely a trend that will mark 2022 in the world of crypto. With that said, it is expected that at least one RMRK metaverse might emerge in months to come, and possibly more of them.
If this does come to pass, RMRK will be the native cryptocurrency in these metaverses. Depending on their nature, users might be able to earn the token inside these metaverses, spend it, or both.
Governance rights
Finally, RMRK can also be used as a governance token within the project’s DAO. This means that users could use it to join the rest of the community and vote on various proposals meant to bring positive changes to the project, improve existing features, or eliminate something that the community deems is harmful in some way. Voting on existing proposals is only half of the deal, however, as RMRK holders can also submit their own proposals if they believe that some aspect of the project can be changed, in which case the rest of the community will vote on that proposal, and together decide whether or not it should be implemented.
Bottom Line
RMRK is a rather unique and interesting blockchain project, meant to address some of the burning issues in the NFT space. At the same time, it also offers benefits to users which are not to be ignored, as they still provide users with a method to earn passive income, or simply trade it, use it within the network in a variety of ways, and more.
In the end, its goal is to offer a set of NFT legos, that are standalone features, but combined and put together, they can offer a system of arbitrary complexity that brings a solution for common problems in the NFT sector. At the same time, it also provides an easy way for handling NFTs that many in the sector require, considering that the popularity of NFTs has been growing consistently for over a year now. And, thanks to their role in the metaverse, which is the newest and hottest trend right now — the popularity and usage of NFTs is unlikely to stop anytime soon.
