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Subscription Mechanism: Introducing a Fair and Square Way to Purchase the Latest NFTs on Binance

2022-01-15

Main Takeaways

  • Binance NFT’s latest feature, Subscription Mechanism, gives everyone a fair and square chance to buy exclusive, highly sought-after NFTs. 

  • The Subscription Mechanism process consists of four phases: Preparation, Subscription, Calculation, and Distribution. 

  • In this comprehensive guide, we’ll walk you through the steps to participate in your first Subscription Mechanism NFT sale.

Discover our NFT Subscription Mechanism, a new feature that gives all users a fair chance to purchase exclusive and highly sought-after NFTs.

Taking heed of the community’s feedback, Binance NFT has made it a habit to roll out feature updates monthly. Recent additions to the platform include reCAPTCHA v3, multi-chain support, fresh ways to interact with creators, and intuitive indices to discover your next favorite collection.

Our latest feature update, Subscription Mechanism, introduces a new way for users to participate fairly in the latest drops and exclusive releases that Binance NFT offers regularly. 

As NFTs become increasingly popular, we understand that the odds of purchasing a hot new NFT are becoming slimmer. Recognizing this, we launched the Subscription Mechanism feature to ensure all users get an equal opportunity to participate in Binance NFT’s primary sales. In this article, you’ll learn how our Subscription Mechanism works and how you can participate.

Get Started with Subscription Mechanism

Binance NFT’s Subscription Mechanism is a purchase method that ensures all participating users have an equal chance to make a successful purchase of scarce NFTs. There are four phases in the Subscription Mechanism process: Preparation, Subscription, Calculation, and Distribution, all of which play a crucial role in distributing purchase opportunities equally among all participants.

  1. Preparation

Depending on the rules of each launch, you will need to make sure you meet specific requirements to qualify for the next phase. Below are the types of prerequisites that you can encounter in this phase.

a) BNB Prerequisite: You must hold a minimum amount of BNB during the Preparation Phase. Some NFT projects/creators may set higher or lower entry requirements, so if you find an NFT Subscription Mechanism sale you want to join, make sure you’re holding the minimum required BNB amount in your wallet.

b) NFT Prerequisite: During the Preparation Phase, you will be required to lock the NFTs specified in the NFT collection prerequisites outlined by the project on the NFT sale page. 

This step will allow you to proceed to the Subscription Phase, where you will be allocated Participation Tickets and invited to join the Subscription Mechanism sale. All locked NFTs will be automatically refunded to your wallet at the end of the Preparation Phase.

c) BNB or NFT Prerequisite: If the project offers the option of either prerequisite, you can choose between holding a minimum amount of BNB or locking the NFTs specified in the NFT collection prerequisites during the Preparation Phase to proceed to the Subscription Phase.

d) NFT Holding Prerequisite: During the Preparation Phase, you will be required to lock the blue chip NFTs specified in the NFT collection prerequisites outlined by the project on the NFT sale page. The more blue chip NFTs you lock, the more Participation Tickets you can get, up to the limit specified under [NFTs Hard Cap].

Fulfilling the NFT Holding Prerequisite qualifies you to proceed to the Subscription Phase, where you will be allocated Participation Tickets and invited to join the Subscription Mechanism sale. All locked NFTs will be automatically refunded to your wallet at the end of the Preparation Phase.

  1. Subscription

Once you have fulfilled the prerequisite(s) specified by each sale, you’ll move on to the Subscription Phase. At this step, each qualifying user will receive Participation Ticket(s) according to the purchase limit per user set by the NFT project or creator. 

The number of Participation Tickets indicates the maximum number of NFTs each user can potentially purchase from a sale. You will be required to submit the number of Participation Tickets you wish to commit to that specific sale. To proceed, simply select [Subscribe for Ticket(s)]. You can subscribe to the NFT primary sale by committing some or all of your Participation Tickets. 

We would like to emphasize that, to keep NFT sales fair, committing more Participation Tickets does not guarantee a user a successful purchase. It can, however, increase the probability of a purchase: the more tickets you commit, the higher your chances of successfully purchasing the NFT.

Please note: Your tokens will be locked according to the number of subscribed tickets and will be released or refunded in full after the Distribution Phase is complete.

  1. Calculation

Our system will select winning tickets from all subscribed Participation Tickets, ensuring that each ticket has an equal chance of being selected. A winning ticket allows the user to purchase an NFT in the primary sale.

  1. Distribution 

Users with the winning Participation Tickets will purchase the desired NFTs in the primary sale, and their funds will be deducted accordingly. Those whose Participation Tickets were not selected will automatically receive a refund in corresponding tokens to their Spot Wallets. 

Subscribe and Purchase Your Next NFT in Four Steps

As you can see, Subscription Mechanism sales are straightforward and only take a few simple steps to participate. Keep reading for a step-by-step guide to getting started on your first one.

Step 1: Pick the NFT sale you want to participate in

You can access the Sales Mechanism page in three ways: INO landing pages and collection banners on the NFT Marketplace homepage. Click on the upcoming NFT sale you want to participate in, and you’ll be taken to its Sales Mechanism page.

Step 2: Fulfill the prerequisites set by the sale

To qualify for the NFT sale of your choice, ensure that you hold the minimum daily average BNB amount or lock the NFTs specified in the project’s NFT Collection Prerequisites. If the project offers such a choice, you can fulfill either the BNB or NFT prerequisite in the Preparation Phase.

If you don’t meet the minimum BNB requirement, you can buy BNB in various ways, including using credit/debit cards or third-party channels. As for the NFTs specified in the NFT Collection Prerequisites, you can buy them on the Binance NFT Marketplace.

Step 3: Commit your Participation Ticket(s)

Now that you’ve met the minimum requirements, you’ll receive Participation Ticket(s) based on the purchase limit per user set by the NFT project or creator. You will have to submit the number of Participation Tickets you would like to commit to the sale during this phase by clicking [Subscribe for Ticket(s)].

You have the option to subscribe to an NFT primary sale by committing part or all of your Participation Ticket(s) to a pool, where all the committed tickets have an equal chance of winning. The number of committed Participation Tickets will determine the funds to be locked, which will only be refunded (or exchanged for the desired NFTs) at the end of the Distribution Phase.

Step 4: Check your purchase status

Each committed Participation Ticket has an equal chance of getting selected during the Calculation Phase. Once the winning tickets are picked, you can check the status of your NFT purchase in the Distribution Phase. Successful buyers will find their purchased NFTs in the Binance NFT User Center.

If your purchase is unsuccessful, we’ll automatically refund the tokens to your wallet, and you’ll still have the opportunity to purchase the desired NFT in the secondary market. For more information, you can read our detailed step-by-step guide here. 

Introducing the NFT Holding Prerequisite

Instead of locking your valuable NFTs, simply holding them in your Binance account can make all the difference in acquiring more Participation Tickets during the Subscription Phase. To learn more, check out our FAQ.

The more blue chip NFTs you hold in your account that are specified in the NFT collection prerequisite during the Preparation Phase, the more Participation Tickets you can be eligible for in the Subscription Phase. 

Remember that the [NFTs Hard Cap] specified on each Subscription Mechanism will determine the maximum number of NFTs you can purchase from the primary sale. You can buy the NFTs specified in the NFT Collection Prerequisites from the Binance NFT Marketplace. 

Let’s demonstrate this four-step process with an example of a sale running from 2023-07-15 00:00 (UTC) to 2023-07-17 02:00 (UTC).:

  1. Preparation Phase

TL;DR – To obtain more Participation Tickets in the Subscription Phase, increase and maintain your blue chip NFT holding value as much as possible throughout the Preparation Phase.

You can hold more NFTs from the blue chip NFT collections specified in the NFT collection prerequisite to increase the value of your average blue chip NFT holdings. The value will be calculated based on the floor price of the blue chip NFT collection.

Please note that the value of your NFT holdings is calculated daily. If you sell any NFTs after the Preparation Phase begins, the average value of your NFT holdings might change.

During the Preparation Phase, Binance NFT will calculate the value of your NFT holdings daily to obtain your average NFT holdings value. Since the Preparation Phase lasts for three days, the value of your NFT holdings for the eligible blue chip NFT collections will be calculated daily based on the same floor price across three days.

Binance NFT will announce the floor price on the Preparation Sale page, and the floor price value used to calculate your holdings won’t change across the Preparation Phase.

For example, based on the price indicated for each NFT under [NFT Collection Prerequisites], you have at least X value of NFT holdings worth of Blue Chip NFTs in your wallet before 2022-07-15 00:00 (UTC).

You continue to hold the minimum value required for one ticket based on the Blue Chip NFT worth/per ticket (e.g., 100 USD) throughout the entire Preparation Phase between 2022-07-15 00:00 (UTC) and 2022-07-17 02:00 (UTC). In this case, you will be eligible to enter the Subscription Phase. 

Blue Chip NFT worth/per ticket: The more blue chip NFTs you hold, the more Participation Tickets you can get. Binance NFT will calculate the value of your NFT holdings every day during the Preparation Phase. The average value of your NFT holdings will be divided by the value indicated in [Blue Chip NFT worth/per ticket] to calculate the number of Participation Tickets you can receive.

NFTs Hard Cap: The maximum number of NFTs you can buy from the Subscription Mechanism sale.

The number of tickets you can receive may be calculated as follows: 

For example, you fulfill the NFT Holding Prerequisite for 3 specified blue chip NFT collections, with 2 NFTs from each collection.

(2 * floor price of NFT collection #1) + (2 * floor price of NFT collection #2) + (2 * floor price of NFT collection #3) = X NFT holding value

If the Blue Chip NFT worth/per ticket = 100 USD, then each user can get one ticket for every 100 USD they hold in the equivalent blue chip NFT value based on the floor price at 00:00 (UTC) on the day the Subscription Mechanism sale starts. 

Number of Participation Tickets you can receive = X NFT holding value / number of days in the Preparation Phase / 100 USD

Number of Participation Tickets you can receive = 1,000 NFT holding value / 5 days of the Preparation Phase / 23 USD = 8.69

Note: All decimal places are rounded down. Therefore, you will receive 8 Participation Tickets. 

For the NFT Holding Prerequisite, different users will receive a different number of Participation Tickets. The Participation Ticket limit will be assigned according to the average blue chip NFT holding value calculated during the Preparation Phase.

  1. Subscription Phase

TL;DR – Click [Subscribe for Ticket(s)] and choose the number of Participation Tickets you want to commit based on the number of NFTs you want to buy in the primary sale. The more tickets you commit, the higher the probability of your Participation Tickets getting selected.

Please note that you must indicate the number of Participation Tickets you would like to commit to the sale during this phase. You can choose to commit some or all of your available Participation Tickets. The more tickets you commit, the higher the probability of your tickets getting selected. Please note that this does not guarantee you can successfully purchase an NFT from the sale.

For the NFT Holding Prerequisite, different users will receive a different number of Participation Tickets. The Participation Tickets limit will be assigned according to the average blue chip NFT holding value calculated during the Preparation Phase. You will see the number of tokens you need to lock up. Click [Subscribe for Ticket(s)].

Please note that you can only use the available token balance in your Spot Wallet. Your tokens will be locked up until the Distribution Phase ends.

  1. Calculation Phase 

TL;DR – Remember that the [NFTs Hard Cap] will determine the maximum number of NFTs you can purchase from the primary sale, depending on the number of subscribed participants.

Your subscribed Participation Tickets will enter a pool when the Subscription phase ends. The system will select the winners in a fair and square manner. For more details on the winner selection process, please refer to the Binance NFT Subscription Mechanism Winner Selection Algorithm.

Please note that there might be a limit on the number of NFTs you can purchase for each Subscription Mechanism sale, as indicated by the [NFTs Hard Cap] on each Subscription Mechanism sale page. If the total number of subscribed participants is less than the total supply of NFTs, there won’t be any hard cap on the number of NFTs you can purchase.

If a user is selected to purchase more NFTs than the specified NFTs hard cap, the final NFT allocation will be reduced to the hard cap limit. For example:

  • You committed 100 Participation Tickets;

  • The system selected 30 winning Participation Tickets;

  • The NFTs hard cap is 20. 

If the total number of participants is more than the total supply of NFTs, you can only buy up to 20 NFTs (the hard cap).

  1. Distribution Phase

TL;DR – Check the number of NFTs you have successfully acquired.

Once the calculation completes, you will see the allocation details. If your Participation Tickets win, you can use them to purchase the NFT assets in the collection, and your locked tokens will be deducted accordingly. The locked tokens will be returned to your Spot Wallet if your Participation Tickets do not win.

Stay Updated on Binance NFT’s Latest Drops

Binance NFT is the world’s largest curated NFT marketplace, with a comprehensive NFT platform that brings together content creators, world-famous artists, game developers, and digital collectors. To be the first to learn about our latest NFT drops and news, follow Binance NFT on Twitter or Instagram and join our official announcements group. 

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