2.2 Insurance and Trading

BookboxNFT is issued and traded using the "Minting is Trading" model. This model enhances the liquidity of long-tail collections.
In this model, for each minted BookboxNFT, users need to deposit N RCM tokens into the liquidity pool of that collection, where:
N = n² / (16m)
(n = the NFT's position within the collection,
m is the RCM price adjustment factor)
When RCM is less than or equal to 1 USD, m = 1.
When RCM is greater than 1 USD, m = the RCM price.
The price of N is determined based on the RCM price at the time of initiating minting for a specific collection. Subsequent minting is not affected by fluctuations in RCM prices.
During the trading process, the protocol will deduct a certain percentage as a transaction fee (initially set at 10%). Out of this, 40% is shared among some BookboxNFT holders (participation starts when BookboxNFTs are locked), 30% goes to the creators, and 30% is the project's income.
However, the "Minting is Trading" model cannot meet the trading requirements of NFTs based on the ERC721 standard. Metale also provides a marketplace to fulfill the trading needs of BookNFTs.