Good day everybody,
I hope you are all having a nice day, welcome to CryptoGod-1's blog on all things crypto. Today I will be writing about how to calculate rarity when doing up a collection of NFTs. This can be done for collections of all shapes and sizes, and while the generic 10,000 NFT's are the industry standard, a collection of 10 or 100 can just as easily use this method to the same effect.
To create your collection your must first establish a set of rules to follow. These rules will differ depending on your project and the scale of it, but overall they usually follow the same pattern. The key route of creating and selling your NFTs is by following the simple steps of designing, marketing, and minting. While it is usually easier to do this in teams, it is also capable to do this by oneself. Below are the key rules that each creator of an NFT collection such adhere to and always try plan and implement before they begin creating their artworks. These should always be worked out during the designing phase.
- Collection Size
- Layers and Traits
- Rarity Scores
- Rarity Analysis
The first step is probably the most important. Like with anything in life, you cannot plan further unless you understand what the end result is. In this case, its how many NFTs you are planning on creating within your collection. Generally, around 10,000 unique NFTs is the standard for most new collections which are constantly appearing. Of course, the drawback is the fact these NFTs are not totally unique, instead they all have a common main character, such as a face. Beyond this, the other characteristics of the NFTs differ in the details, such as hair, eyes, mouth, etc.
To calculate how many NFTs your collection can become is a simple mathematical calculation. First you must decide how many layers your art will contain. Taking the example above, if its a face, the layers could be along the following:
If each of these layers has 5 variations of each, for example eyes could be blue, green, brown, grey, and black, then we just multiply out the number of layer variations to get the total amount.
5 (Hair) x 5 (Eyes) x 5 (Mouth) x 5 (Nose) x 5 (Ears) = 3,125 unique characters which can be created
As each collection differs in size, some layers could have more variations than others to increase the collection total. A simple method of making a 10,000 NFT collection is by having 4 layers with 10 variations each.
Layers and Variations / Traits
The layers as discussed above are key to expanding the total size of your collection. To apply traits the creator needs a rarity factor, which can be a powerful tool in making your collection have rarer pieces. These rarer pieces will generally sell for a higher price than the more common ones. To achieve this, you need to set rules for the layers and variations/traits. These rules will help to create how rare a variation is within your collection. Through combining rarer traits, the creator can generate very rare NFTs within the collection.
Following the example from above, if we applied variation rarity to the Eyes layer it could be something like this:
- Blue - 35%
- Green - 25%
- Brown - 15%
- Grey - 15%
- Black - 10%
This will ensure that any NFT created with Black Eyes is more valuable than the others within the collection. By following this equation the creator can calculate a variations rarity:
Variations rarity = (The number of NFTs containing that trait / Total Number of NFTs) * 100
Certain layers might not want a total 100% from the combination of variations. By this I mean that a layer, for example the face NFTs as discussed previously, could have an additional layer called Eyepatch. This would be applied over the Eyes layer, but it might not be required for each NFT. Instead of giving this layer a 100%, it might only be around 20%. This mean certain NFTs will not contain this layer at all.
It important to remember that layer’s rarity means how many NFTs within the collection have some of the layer‘s variations. A 100% layer rarity mean every NFT in the collection has at least one of the variations, while a 0% layer’s rarity means that none of the NFTs within the collection contain a variation from that layer.
The following equation should be used:
Layer’s rarity = (The number of NFTs with that layer / Total number of NFTs) * 100
Then your new variations rarity can be calculated by following this:
Variation rarity = Variation rarity x (Layer’s rarity / 100)
It is vitally important to set up an organised list with all your variation rarities from the collection. This will help you down the line whether you choose to hire a programmer, or generate the NFT collection yourself. It will also ensure you do not overestimate or underestimate the amount of layers which will be usable in creating your collection.
As noted previously, NFTs with the rarest variations are considered the rarest within the collection, and allow for a higher floor price. This becomes more complex to calculate when there are multiple layers with variation rarity to calculate. To determine the NFTs overall value, a rarity score must be created. A rarity score is a final number which measures the overall rarity of an NFT within the collection, and generally the higher the score, the more rare the NFT is. This can be done by calculating the rarity score, using this method which is generally the most common way, and how rarity.tools applies it:
Variation score = 100 / Variation rarity
To generate the rarity score for an NFT:
NFT’s rarity score = ∑ Variation score of that individual NFT
That means the rarity score for an NFT is equal to the sum of all its variation scores. Rarity.tools has a great article about this method, outlining how its the most effective way to determine how rare an NFT is.
The final rule to follow is nots so much a mathematical calculation, but rather more related to geometry. It is still a very important tool when analysing the overall rarity of the NFT collection. It is achieved by drawing a graph, with an X and Y axis. The X-axis represents the number of NFTs, while the Y-axis is a representative of their corresponding rarity scores. Similar to business, it works in the same ways as an the Exponential growth graph. This is the way a creator would want the rarity distributed amongst their NFTs, with the majority containing fairly common variations within the collection, a small selection containing the more rare variations. Linear growth is not what a creator wants for their collection, as that would give an equal amount of common and rare NFTs.
To create and effective collection of NFTs, regardless of the collection size, one should always apply the calculations before they begin creating their work. Through effective planning the creator can know in advance how many NFTs they plan on producing, the different layers and variations that will be required, and just how rare the individual NFTs in the collection will be. Its important to strategize ahead and create a collection which will have exponential growth. While more complicated projects with multiple layers and variations of each can be daunting, planning out the process can relieve some of the strain before the work has even begun. There are many good platform which can assist, generally at a price, in creating your collection, or you can apply your own technical skills alongside your artwork to create your perfect collection.
I hope you enjoyed the read and learned something of interest about the method of creating a large NFT collection. Have a great day.
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