> For the complete documentation index, see [llms.txt](https://docs.liquidcollectibles.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.liquidcollectibles.io/introduction/floor-price.md). # Floor price Liquid Collectibles' floor prices don't work as in other marketplaces. To understand it, first, we must consider how the NFT indexes (NFTi) work. For every 100 NFTi in circulation, there has to be 1 NFT collateralized in the protocol. Whenever someone buys (redeems) an NFT, 100 NFTi are burned. The inverse happens when someone sells (tokenizes) an NFT with 100 NFTi being minted. This means the market will remain fluid for buyers/sellers, preventing the NFTi from being inflationary and negatively impacting the NFT floor price. ### *How is this different from 'traditional markets'?* Traditional marketplaces require a seller who lists their pieces and a buyer to meet the offer for a trade to be completed. In order to raise a collection's floor price, every single piece listed at the lower price must be bought. ### *What about Liquid Collectibles?* Whenever an NFT is bought with $BNB, the NFTi are bought behind the scenes from the market as part of the transaction, which creates steady buying pressure on the NFTi, consequently raising the floor price of the collection. This means only ONE purchase would be needed to raise the floor. ### **For a deeper understanding, please check these materials:** {% embed url="" %} Medium article {% endembed %} {% embed url="" %} YouTube Video {% endembed %} --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.liquidcollectibles.io/introduction/floor-price.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.