Application of DAO: DAO of Art

I always think that art is the best testing ground for DAO in the non-technical field, and art works are undoubtedly the most suitable experimental pioneers in the art field. The fact is the same. The NFT-based art work market has formed a global Sina. The tide has also given many artists new opportunities, especially those who do not have a strong background and reputation. According to a friend of mine who has been involved in this type of art market overseas, many artists have achieved freedom of work and life through this emerging model. This is indeed a reassuring thing. However, it also faces many problems and challenges. The author of this article is the founder of KnownOrigin. We can understand this field , as well as its problems and opportunities, from his perspective , and maybe we can get some inspiration from it. —— Typto

Author: James Morgan

Translator: Samuel2k

Proofreading: Yefan Huang

• Bitcoin's Secret History: How Much Bitcoin Satoshi has
• bZx revelation: What should Oracle oracles need for DeFi?
• Analysis report check the latest chip distribution of major currencies

Overview: In this article, James Morgan, the founder of KnownOrigin, a digital art market, talks about his views on the field of crypto art and the typical problems he sees in the field of crypto art, and proposes a solution, namely, to build an art-centric Decentralized Autonomous Organization (DAO).

Is it possible to raise funds decentralized in the art field, so that art creativity, collectors, and platforms can promote the development of the field together? We will explore this idea in detail in this article.

What i love

Since the creation of KnownOrigin, the digital art market, I have been surprised by the people I met and the projects I talked about during the founding process. This was the first project I participated in for myself, not externally. I learned a lot in the project, and frankly, I appreciate it.

From what I have at present, all projects in the field of crypto art are trying to advance this new field, and trying to thoroughly add new artists and collectors to it and grow it.

Everyone is working hard to enhance the value proposition of existing artworks and try to increase the value of artworks, brands, their platforms and the tokens they issue. But it is still just an emerging industry. In my opinion, it will only develop further. If it can be successfully capitalized, some people will say that it is the perfect combination of investment and growth.

The vast majority of Ethereum-based crypto art projects tend to use non-homogeneous tokens (NFT). Provide source and tradability for digital assets sold on platforms like KnownOrigin, SuperRare, and Makersplace with this unique encrypted data block representing ownership. Existing standards, such as ERC-721, have played a fundamental role in the expansion and application of the NFT field, driving new innovations, promoting use, and disseminating "crypto-collectables." These standards are now supported by most mainstream Ethereum wallets, which demonstrates a significant step forward in the validation of technology and the desire to hold digital assets.

Typical questions I see in the field of crypto art

Most teams find it difficult to get funding, and they often lack the resources, so they have pinned their hopes on using limited resources to achieve their goals, which has caused a lot of restrictions.

Although the number of collectors and artists entering this field is small, it is still growing. However, due to the poor user experience, no consideration of language issues and user education gaps, no matter whether artists or users, entering the field is still A challenge.

Not only that, the addition of new users is also a time-consuming and expensive task-the process of educating users is a key factor, and it is time-consuming and easy for most collectors and artists who do not understand the crypto art world. Going wrong and scary. In general, the best way to educate is to pass users who have joined and know how to join to users who have not joined. But trying to connect these decentralized points in a decentralized world to bring these people who educate users together can be tricky.

As mentioned above, user experience is a problem, not only at the application level, but also in related tools (such as MetaMask), calculating transaction costs, transaction confirmations, and understanding the true meaning of interacting with public blockchains such as Ethereum is also like this.

Interoperability and lack of standards are issues that are rarely mentioned publicly. Although standards such as ERC-721 provide a solid foundation, the platform or market itself can still enforce matters such as secondary sales.

There is no one standard to achieve such things as returning secondary sales commissions to artists, and it should not be platform specific.

It should make full use of smart contracts and immutable blockchain technology to give full play to and promote the development of crypto art. The identity verification and artwork verification of artists on the chain are still missing, and I believe that if an open system is created, this missing part of the encrypted art world will be complemented. We shouldn't simply duplicate existing, faulty systems, we should try to do something better than the status quo.

Some of these issues are well known, and teams around the world are looking for novel ways to solve them. However, in my opinion, the above issues are platform-independent and not specific to an application, but require higher-level thinking and resources to apply them. I also believe that if they are addressed in a more open and transparent way, it will benefit multiple participants such as platforms, collectors, and even the artists themselves.

DAO … what the hell?

One idea I have been putting forward for some time is to introduce new funding mechanisms to help this area. In addition to funding product development, there may be other uses. This mechanism is not a traditional angel fund or venture capital fund, but a more altruistic and nearly anarchic approach that can be promoted by early adopters, collectors, and artists.

My suggestion is to create a domain-specific DAO, also known as a decentralized autonomous organization. This is what I want to focus more on today.

Frankly-I haven't set up, deployed or managed a DAO yet. This is purely an idea, mainly some reading and research opinions, so don't be so strict with me.

Most people now know what happened in the famous DAO hack in 2016, and since then people have been reluctant to participate in the concept of DAOs and on-chain governance, especially in the Ethereum field. Recently, projects such as DAOStack, MolachDAO, and DAOIncubator have been promoting the use of DAOs and reshaping how they operate.

Maybe, just maybe, we can also try and use advanced technology to create something useful for art and creative space.

What can this art-focused DAO fund offer?

In order to enhance the value proposition of art-based platforms, we need to attract more collectors and artists and make the superiority of the art-based NFT value proposition even more entrenched. They are presented in the form of initiatives, which I will explore further.

• User education and getting started -In my experience, this is time-consuming, slow and error-prone-creating educational content, open wiki spaces, community operations plans, public educational seminars and projects may help in this regard. Grassroots organizations already working in the creative field can be encouraged and help them enter the field of crypto art.
• Driving Standardization — Above, I talked about mismatches and specific concepts of the current platform, such as implementations such as secondary sales commissions. I think it would be beneficial to standardize the process and the current way of working and create a common pattern framework on a larger scale. It would be great if DAO could sponsor this work and help bring the people together to unify their way of working and benefit all artists on all platforms.
• Certified artwork and artists -Many crypto art sites have a "verified" badge on the site, but if it can be done without trusting the site, it will be just a marketing gimmick, at least for This is true for me as a technology enthusiast and collector. What if the DAO can fund the research and creation of a token or copyright registration center, which means that the artist who is creating the artwork can fully guarantee the authenticity of the artwork being sold and provide an open verification service for everyone? ?
• Reputation system -A decentralized reputation system needs to be built in a specific domain to help build trust in the platform itself. Help collectors understand what is safe, what is a scam, what is new and known. It might be great if DAO can help study how to work in a platform-independent, decentralized way.
• Transaction Relayers and Metatransactions-Metatransactions are great, we know that. They are increasingly used in collectives such as burner wallet and xDai, new wallets like MetaCash, and GAS Station Network. What if we set up a DAO to fund transaction repeaters for users and collectors? Imagine if all sites contributing to DAO could abstract away the concept of paying GAS fees, then one of the biggest user experience challenges in this area could be solved. (Translator's Note: The biggest user experience challenge in this field is: if you want to try products in the encrypted world, the user must have a wallet, and there must be a little bit of ETH in the wallet for operational interaction. It is a very high threshold for users.)
• Computing power to fund GAN / AI artworks- The cost of obtaining or renting computing power and resources for artists to create beautiful GAN ​​/ AI artworks is high. There is no doubt that the digital art space will be an ideal hotbed for accepting innovative media types. For example, Golem & Dfinity is an existing decentralized computing platform that can be leveraged. Wouldn't it be a good idea if DAO could be used to lease, grant, or buy computing hardware and GPUs that artists use to create new works?
• Interactive Crypto Art-Last year, we partnered with Snowfro to help shape the first early version of Artblocks, and one of the things I've always loved is hosting large interactive art exhibitions at festivals and other occasions. Imagine being in Coachella or Glastonbury and participating in a new, interactive, motivational, personal, token-driven art installation. DAO's funds can help promote these initiatives by providing grants to large cities and events, fundamentally promoting the use of the entire ecosystem and exposure of the mass media.

Possible fundraising mechanism

The source of funds and sources of income may come from many places. In return, the corresponding rewards may also be different. The drivers of these mechanisms depend to a large extent on the value generated by investments.

Here are some ideas on how to work, and I'm sure that once more research is done, some of them will become infeasible, so please consider them as personal ideas, not research and data List.

• First Sale Commission -If the platform utilizes DAO to pay and benefit from it, it can repurchase on sale. At the same time, artists also have the opportunity to use a certain percentage of sales revenue to fund DAO.
• Secondary sales -Markets like OpenSea can define secondary sales commissions that can go directly to the DAO fund. Most platforms can define the commission for the first sale or second sale of the platform and other cooperation addresses. These may be the more mature entry points for DAO funds.
• Lending / Renting Art Models -Can artists lend their tokenized art to physical and digital galleries for a fee? Using DAOs as trusted third parties and arbitrators for such transactions generates an income stream that can fund DAOs.
• Artwork Mortgage -Can the artwork itself be used as collateral to generate new income? The difficulty is to value them, but maybe a reputation-based model and data feedback from the sales department can help achieve this.
• Direct Donations -For those platforms that take advantage of DAO and its generation services, collectors and artists may wish to donate directly. This is selfless and charitable, but I believe the committee supports this form of funding.
• Venture Capital / Angel Investment / Fund -A more traditional model where investors want to diversify their investments into areas of high risk but potentially high returns, while recognizing the growth potential of the digital asset space.

The mechanism for purchasing tokenized art is a world issue about artists, collectors, and issuing and trading token platforms.

Therefore, in my opinion, this is a natural common goal and meeting point, and all participants will benefit from any progress in the art-centric DAO. Artists can benefit from higher adoption rates, collectors can benefit by increasing the value proposition of digital art assets, and platforms can benefit from traffic and growth.

There are other themes and considerations, such as governance models, reputation system traps, and how logically it is in the best interest of all. In the next few weeks, I will explore these in more detail, but the above represent my current thoughts on this interesting topic.

· · ·

I would like to provide some feedback on the above ideas and propositions, especially those who are active in the fields of DAO, NFT and art. Most of the above content still lacks test feasibility and verifiability, but I hope that myself and others can get some attention from it, start deeper research and investigation on this topic, and start planning how to translate ideas into reality.

Original address: https://medium.com/knownorigin/arts-focused-daos-7999b558d232

We will continue to update Blocking; if you have any questions or suggestions, please contact us!