AOVR Tokens
AOVR tokens are the native commodity token of the network required for the following (and possible future) ovr-program activities (i) register as an artist (ii) request Artwork tokens (register artwork) (iii) artist token swaps on artworks (akin to liking an artwork or supporting an artist’s work).
Operations i and ii must have a non-zero price to protect the network from inflationary usage and spam. The required amount for both transactions are fixed at 10,000 AOVR for artist registration and 1,000 AOVR for an Artwork token request. In the long run it might be beneficial to let those prices be floating relative to the price of AOVR tokens proportional to the price of a representative basket of settlement currencies in the network. By doing this the network usage fees are maintained at a relatively constant level.
The AOVR tokens invested by artists in operations i and ii are deposited to the ALLOVR DAO treasury (more on the DAO can be found in the subsequent section). Needless to say, AOVR tokens can also be used as a method of payment in Artwork Token transactions. Beside its utility character, AOVR tokens serve as the leading governance token in the ALLOVR DAO. AOVR token holders represent the ALLOVR community and are responsible for the future direction of the ovr-program and the ALLOVR governance development.
Additionally, the AOVR token distribution model rewards the usage of the network. AOVR token holders have the ability to earn rewards paid from an automated and immutable 5% annual network inflation of AOVR tokens. Inflation is distributed on a weekly basis, 2,5% going to the users of the network who have staked AOVR in one of the available staking pools and 2,5% go into the DAO treasury to finance the ongoing work and improvement of the network.
The combination of AOVR tokens and artist tokens guarantees a two-stage incentive scheme that results in strong economic alignment within an artist community on the first level and a general alignment on the network level facilitating network usage, good governance and collaboration between single artist communities.
Holding AOVR token signals long term trust and support to the ALLOVR network as a whole.
The proposed token economy results in efficient incentive sets for relevant network user groups:
Allovr Community (AOVR token holders)
Artists
Collectors
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