# What is an Initial Bonded NFT Offering? - RariLend.com

By [RariLend](https://paragraph.com/@rarilend) · 2022-01-27

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**_Welcome in the Matriverse…_**

An **IBNFTO** is a new way to release an early token by **bringing the power of DeFi to NFTs**. It has been conceptualized with the goal of building an early and fair DAO directly with the community, bypassing crypto Whales and VCs at early stages.

![Decentralized Autonomous Organization](https://storage.googleapis.com/papyrus_images/84abfb0d41c4db20acb13598c3057650c8e91bf4d47065efa5feb1d10546bffb.png)

Decentralized Autonomous Organization

It is no secret that wealthy players stockpile large amounts of discounted tokens during Pre-Sales, which undermines any effort of building **Democratic** **Decentralized Autonomous Organizations**.

This is because more voting power (tokens) ends up in the hands of a few, playing against the vast majority of the other **DAO** members (you).

Most other public token release models (ICO/IDO/IEO/[IBCO](https://medium.com/onomy-protocol/what-is-a-bonding-curve-offering-bco-12518e0a98fc)…) all carry the same disadvantages with the additional particularity that emitted liquidity is often circulating too quickly, creating large amounts of **market volatility**. Vesting mechanisms are thought to reduce early volatility risks, but in practice it isn’t ideal neither.

**IBNFTOs** **could change this…**

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**Utility NFTs used for IBNFTOs**
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A **Utility NFT** is not just an image or a piece of artwork but also carries with it specificities allowing the NFT to interact with smart contracts in **Decentralized Finance** Applications.

> `Utility NFTs are keys unlocking features in DeFi Protocols.`

Therefore, it becomes possible to bond (= lock or encapsulate) tokens within a NFT that will be **released by a smart contract** at a later date or **under specific conditions**. This allows to offer early tokens to anyone and with the same discounts and vested terms than Whales and crypto VCs obtain during presales, therefore allowing to reliably **spread the early token distribution among much more participants**.

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**RariLend IBNFTO**

[**RariLend Protocol**](https://www.rarilend.com/protocol)\*\* \*\*aims to **bring DeFi to NFTs** by building the first fair DAO-backed Blue Chip NFT Marketplace & Lending / Borrowing Protocol with Yield incentives. Basically, a Premium NFT Marketplace where all listed collections have been vetted (approved) by the DAO and where Protocol profits are redistributed to token holders.

**RariLend** introduces the [**RED & BLUE PILLS**](https://www.rarilend.com/Pills-Utility)\*\* \*\*as Utility and Governance NFTs launched as an IBNFTO. PILLS contain **Bonded $RLP tokens** sold at a discount as well as a **Staking Power Boost** over the Protocol Governance.

![RariLend Blue & Red PILLS: Goverance and Utility NFTs](https://storage.googleapis.com/papyrus_images/5344d8245c8d4ad2d622a7e0a04865376b65c96b6a800440bcbab2130b9beada.png)

RariLend Blue & Red PILLS: Goverance and Utility NFTs

PILLS holders will have the choice at any time to:

*   **Stake** their PILLS in the Governance contract in order to participate in the Platform’s Governance and share Protocol profits,
    
*   **Redeem** PILLS into the Burning contract to release the **$RLP** tokens they contain over a period of time (180 days). _Which will consequently decrease the supply of PILLS NFTs, therefore increasing their rarity and value for the remaining holders…_
    
*   **Hodl or Resell** the PILLS on NFT Marketplaces with their **intrinsic value still tight to the advantages they contain**.
    

These different options will allow to reduce the speed at which the **$RLP** liquidity **locked within the PILLS** will be released on the open Market, limiting the selling pressure on **$RLP** and favoring the **RariLend** ecosystem’s long-term sustainability\*.\*

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Use of Funds raised
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*   **Liquidity** **for $RLP tokens on DEXes** (IDO): 40%
    
*   **Marketing & Community:** 30%
    
*   **Protocol Development:** 30%
    

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_You have a problem with authority, Mr. Anderson. You believe you are special, that somehow the rules do not apply to you. Obviously, you are mistaken._

*   _RHINEHEART_
    

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**Project info:**
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**Official Website:** [https://www.rarilend.com/](https://www.rarilend.com/)

**PILLS Minter:** [https://www.rarilend.com/Pills-Minter](https://www.rarilend.com/Pills-Minter)

**PILLS Utility:** [https://www.rarilend.com/Pills-Utility](https://www.rarilend.com/Pills-Utility)

**DAO on Discord:** [https://discord.gg/ZUjbSw3d5A](https://discord.gg/zECCKuB2wT)

**Twitter:** [https://twitter.com/RariLend](https://twitter.com/RariLend)

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*Originally published on [RariLend](https://paragraph.com/@rarilend/what-is-an-initial-bonded-nft-offering-rarilend-com)*