Pricing NFTs for Buyouts

When a buyer purchases an NFT listed on the protocol (i.e. acquires all shards).

Recall that every shard is listed at all times, and acquiring all of them allows a user to exchange them for the NFT.

Thus, the valuation of a listed NFT is the sum of all of its shards' prices.

The reason behind this design choice is to eliminate governance to achieve price consensus.

Submitting proposals, considering them, and submitting votes is a slow and arduous task.

Protocols with governing systems that require constant attention (i.e. frequent proposals) and input from users to reach any list price have proven to be quite ineffective. Users often become inactive → no price attached to the NFT → buyout can not happen.

With Waterfall's mechanism, there is always a price attached, and incoming shard traders' predictions are immediately reflected.

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