Art owners can tokenize their Artworks and sell fractions of them, thanks to Artwork Tokens, ruled by dedicated Modular Smart Contracts.
Artworks, validated by experts, will be tokenized, and then listed and traded on the ArtSquare exchange.
All Artwork Tokens will be easily traded on the secondary market around the clock. Investors will be protected by a guaranteed Liquidity pool and by optional Artwork insurance.
A secure, encrypted, and immutable transparent storage that contains all the documentation related to the Artwork.
A personalized set of governance rules for the fractional ownership will be agreed conjointly by Art owners and investors.
Art Owners can generate Artwork Tokens (AWT) proof of asset tokens representing a portion of the total value of a specific Artwork.
Art Investors can easily trade their Art Work Tokens without worrying about liquidity. Just like stocks in the financial market.
Below we’ve provided answers to the main questions on ArtSquare. If you can’t find the answer to your question please get in touch with the team.
ArtSquare is a blockchain based platform aiming to become the channel to small investors for galleries, dealers and auction houses. Artworks, validated by experts, will be tokenized, and then listed and traded on ArtSquare exchange. Fine Art and Collectibles assets will be accessible to small investors of any budget, like shares of listed companies.
It’s a concern for any Investor allocating capital in art to consider its relative illiquidity in comparison to most other traditional financial vehicles. ArtSquare’s groundbreaking feature is to allow the transformation of artworks into digital shares or Artwork Token (AWT) available to be purchased and invested by using both FIAT and CRYPTO.
ArtSquare will welcome every Contemporary Artwork, Collectible and Digital Artwork of any value. Each piece of Art and collectible will have to go through an accurate process of authentication and validation of its provenance and conditions, which will lead up to a fair attribution of its monetary value by an appointed expert.
Provenance and authenticity are key concepts to understand how the monetary value of an artwork is determined. Art owners can upload all the documentation to assess value and conditions of their artworks. A certificate of authentication is stored in an encrypted repository with other documents attesting to the artwork’s identity and history.
Artwork provenance and condition information will be stored in a Blockchain using IPFS, (Inter Planetary File System) which acts as a distributed web, a peer-to-peer hypermedia protocol that makes the web faster, safer, and more open.
Before listing an Artwork, the Owner will be able to decide every governance aspect and its related rights by using an intuitive modular smart contract builder to create the Artwork Private Agreement. The Art Owner will select and define several options on the ArtSquare’s Modular Smart Contract builder to produce a personalized set of ownership and governance rules. These will regulate the aspects of the AWTs, which represent fractional ownership of an Artwork, including: ● Jurisdiction ● Location of Artwork ● Insurance ● Total number of AWTs to be sold ● Type of listing (FIFO or Dutch) and others.
At the end of the tokenization stage, AWTs will be created for the Artwork and for all the rules contained in the smart contract and the Art Repository information. Finally, Art Owners can propose their Artworks for listing, selling related AWTs on the primary market to small Art Investors. AWTs are proposed to the small investors that can buy them following FIFO or Dutch auction way. Once Art Investors have purchased AWTs, each investment is regulated by a smart private contract which binds them to the original Art Owner. If the sale is successful, AWTs will be added to the Investor’s wallet as part of his or her portfolio. At the same time, money from the sale will be transferred to the Art Owner, having deducted ArtSquare fees.
AWTs holders can start trading their Artwork Tokens onArtsquare Exchange in the same way shares of listed companies are traded on traditional financial stock market exchange, without worrying about liquidity. Art Investors (sellers) will be able to request help for unfulfilled orders (for a fair price set by the platform). To do this, ArtSquare will use the liquidity pool to cover these unfulfilled orders.
We have decided to form the ArtSquare Council to bring clarity and order with a rules-based system anchored on community consensus, ArtSquare intends to establish an international forum with representatives from cross-sections of the art and collectibles community.
The Art Pro will provide a unique ID code to the Art Repository that will included the uploaded Artwork details and the results of the due diligence process, condition report, and evaluation by the Art Pro.