# 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="<https://liquidcollectibles.medium.com/what-happens-when-buying-or-selling-nfts-on-liquid-collectibles-a1068ab7df4f>" %}
Medium article
{% endembed %}

{% embed url="<https://www.youtube.com/watch?v=QW1anYxfiYo>" %}
YouTube Video
{% endembed %}


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