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Whitepaper
Whitepaper
  • A Next Generation Decentralized Autonomous Art Network
    • Abstract
    • Introduction
    • Incentive Model for Efficient Interaction in the Art Market
      • Alignment of Interests
      • Efficient Signaling
      • Lowering Market Entry Barriers
      • Price Transparency
      • Verifiable Authenticity
    • ALLOVR Economy
      • Artist Tokens
      • Artwork Tokens
      • AOVR Tokens
    • Governance Model
    • Staking Functionality
    • Solution Architecture
    • Appendix 1: Proposed ALLOVR Staking Mechanism
      • Issue with Atomic Distribution of Funds
      • Staking AOVR
      • Issue with Storage of Large Data
      • AOVR Staking Treasury
      • Staking Pool Registry
      • Staking Pools
      • Distributing Owed Amounts - Rebalancing
      • Registering Staking Pools (RegisterAovrStakingPool)
      • Stake Account
      • Staking
      • Minimum Stake Time
      • Withdrawing
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  1. A Next Generation Decentralized Autonomous Art Network
  2. Incentive Model for Efficient Interaction in the Art Market

Lowering Market Entry Barriers

Today, the market entry price for a collector equals the lowest price of all artworks of a specific artist that are offered for sale at a given moment in time. Moreover, this market entry price regularly has to be seen as rather theoretical, as there is a significant likelihood that a collector or supporter has no specific interest in the artwork selling at the lowest price. Consequently the actual market entry price regularly will be significantly higher or even non-existing, as no artwork is publicly offered for sale at that time. Artist tokens by nature reflect a fractionalized participation right. Consequently, Artist tokens have a lower price compared to the average price of an artwork of an artist. Thus, artist tokens lower the market entry price and help to significantly lower the market entry barriers that need to be overcome in order to (financially) benefit from an artist’s long-term success. Moreover, transaction costs in artist tokens are negligible, as no physical delivery is associated.

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Last updated 1 year ago