It’s not another jpeg – it’s value in your hands.
By now, anyone who already had access to information about non-fungible tokens understands this previous concept.
However, NFTs have different values and prices, indeed. Some specific characteristics can make an asset more valuable than others.
Even so, how do we calculate that?
Of course, there are unexpected and subjective aspects that only time can explain – some NFTs become extremely rare and successful because external facts made this possible (some celebrity purchased or promoted it; the community grew and led the collection to higher peaks and etc.).
But there are also objective and more straightforward specifications established and parameters made by the projects’ creators and calculated by platforms’ tools.
At KleverNFT platform, it is possible to check aspects of rarity with what we call Rarity Score.
What is a Rarity Score?
Rarity Score is a tool created to help collectors and traders to know how rare the NFT is.
Searching across many collections and NFTs and having a tool like this makes it easier when choosing an NFT to purchase or bid on.
It’s also a great tool to help you understand the metadata and the value that the item brings.
How do Rarity Scores are calculated?
The score is defined by an algorithm that calculates all the traits. Through an algorithm created by the KleverNFT team, the rarest the NFT is, the higher is the score.
This is how the algorithm works:
1- First, KleverNFT calculates the % that each trait shows up compared with the total NFT percent.
2- To display the API, they multiply the percentage amount by 100 so it can stay between 0 and 100%;
3- In order to calculate the trait score, they do (1 / percent) * 100.
4- Then, the total NFT percentage is calculated as an average of traits’ percentages.
5- Finally, the result is calculated by the total score of the NFT as a sum of traits’ scores.
In other words, the total score would be the sum of the traits’ scores which are calculated as:
(1 / trait_occurence_percet) * 100
How are the Rarity Scores displayed?
We have an example of a Rarity Score of a Billionaire Crypto Whale below.
You can see that the percentages of people who have the same traits is shown in each box that describes the characteristics of the NFT.
For example, in this case, it’s possible to see that this particular NFT has a purple body. It shows that 15.9% of the people who already purchased other Billionaire Crypto Whales might have the same trait in their NFTs.
As for the yellow shirt, it is even rarer because only 0.7% of the other items of the collection have the same trait.
The other traits such as type of hat, format of eyes and mouth and even background of the image has its rarity calculated by the system.
The percentage of the rewards are also displayed in the Rarity Score boxes.
Of course, traits and their percentages may vary according to the collections.
Below, we can see a different example with the Humbled Cats collection.
Even though percentages change and characteristics too, the purpose continues to be the same and the way it is calculated also remains the same.
For Felipe Rieger, head of KleverNFT, Rarity Scores define the exact core meaning of having an NFT of a collection.
“The idea of purchasing NFTs on collections is connected with rarity and exclusivity. Once you get inside those collections, you can search for the rarest one and start building your own. Rarity means value, and collectible NFTs are totally connected with that”.
And spoiler alert! KleverNFT also has new features planned for the next few months, alongside a link to learn more about them in an exclusive whitepaper the team is building.
Ultimately, Rarity Scores can help you to identify the strongest traits of your NFT, which can be very useful when it comes to selling it in the secondary market – or even to decide which gem you will keep for yourself as long as you want to.