A Floor Price Pool is a mechanism used in blockchain projects, particularly those involving non-fungible tokens (NFTs). It refers to a collection of funds set aside to maintain or support a minimum price level for an asset, typically an NFT.In practice, users contribute tokens or assets to the Floor Price Pool. These funds are then used to buy back NFTs, helping to stabilize or raise their market prices. This approach aims to protect investors by ensuring that the value does not drop below a certain threshold, which can instill confidence in the community.The concept also promotes liquidity, as it provides a safety net that can attract new buyers. When investors know there’s a backing price, they may be more inclined to purchase NFTs, bolstering the overall market.Overall, the Floor Price Pool serves as an incentive for participants, balancing risk and reward while fostering a healthier ecosystem around NFT projects.