Artists provide fire, while collectors provide combustion aids. Encrypted art ecology still needs more collectors.
Original title: “SuperRare launches a collector royalty plan, collectors will also receive royalties after the resale of NFT artworks”
Written by: SuperRare Team
Compilation: 0x13
On July 14th, the encrypted art platform SuperRare announced the launch of a collector’s royalty plan, which will pay royalties to SuperRare platform collectors after the art works are resold.
In the traditional art market, many artists’ works cannot be sold at high prices at the beginning, but as the artist’s own influence increases or collectors’ promotion of artworks, the works may sell at sky-high prices in the secondary market. But the artist cannot profit from it. This is not conducive to the healthy development of the market.
With the birth of NFT, the encrypted art platform SuperRare pioneered the creation of royalty income into smart contracts, ensuring that the artist can obtain a certain amount of royalty income after resale of the artist’s work. Now, this has also become the industry standard for encrypted art platforms. SuperRare has begun to innovate further, linking royalty income with collectors.
In SuperRare’s view, this will encourage collectors to actively promote collections and actively explore lesser-known artists. This will increase the royalties earned by artists on the basis of allowing collectors to gain more revenue, and also allow new artists to have more income. More exposure opportunities.
On July 14, the SuperRare team published an article “The Art Royalty Revolution” that explained in detail the impact of art royalties on artists, collectors and the market as a whole, and detailed the details of the collector royalty plan.
The full text is translated as follows:
In 2018, SuperRare brought the automatic division of artist royalties to everyone, and now, we are trying another paradigm shift, that is, “collector royalties”. We believe that this will make the art market more prosperous, and further encourage collectors to buy and resell artworks on the SuperRare platform, and give artists the opportunity to earn higher income and create greater value.
This article will introduce you to SuperRare’s pioneering work on art royalties and how collector royalties work.
What is royalty and why is it so important to art?
Royalties refer to the right to obtain future payment flows due to the urgent need to use or sell an asset. This includes copyrighted works, franchise rights or natural resources (the distributor of the finished product is not the same as the original author/owner), etc. Royalties are an extremely powerful economic structure because it grants multiple parties with different skills and interests the power to accumulate value in basic assets for a long time and together.
On the SuperRare platform, when we just set sail, we firmly believed that a better royalty system would promote the better development of the entire art market. Royalties can not only bring economic income to artists in a way we have never imagined before, but also inspire loyal collectors of artists, because it will make them realize that their future promotion and resale of collections can be Bring more help to themselves and the artist himself.
Artist royalty income status
Before the advent of blockchain and smart contracts, it was almost impossible for artists to collect royalties on artworks. In the physical art market, there is no long-term way to prove that assets have been changed hands, and there is no way to prove that the actual price is paid. Of course, it is even more difficult to prove whether artists have really received the royalties they deserve. Although some regions (such as the European Union and California) have written art royalties into legal documents in recent years, the provisions and actual implementation are quite different. Lawyers, accountants, and collection agencies can all play tricks to make the payment process opaque.
The pioneering work of NFT and SuperRare
NFTs are revolutionary in many ways, but perhaps the most important of them is its protection of art royalties. As artworks become non-homogeneous warrants (NFT) through smart contracts, we will be able to set royalties for the ownership of an artwork, which is unprecedented. Because the artwork has been “on the chain”, people from all over the world can see all its historical and commercial details at the first time, and can prove that these are true, safe and transparent. From that moment on, the royalties of digital artists from all over the world have been protected, and the global art market will be affected.
This will provide all living artists with an opportunity to create a fairer and more sustainable market, allowing artists to immediately receive royalties from the moment their works are sold, which is what SuperRare attaches the most importance to. We have implemented this idea from day one, and within the first month of the SuperRare trading platform’s launch on the Ethereum mainnet, the long-awaited artist Robbie Barrat’s “AI Generated Nude Portrait #4” paid the first royalties. Since then, artist royalties have been the cornerstone of SuperRare smart contracts, and they have been quickly adopted by various NFT trading platforms and have become industry standards.
Royalties and Artist Sovereignty
The feedback from the artist is very convincing. Artists often wake up to find that they have received a sum of money. At that time, their works were resold in the secondary market and they brought them royalty income. This was unheard of before, but now we have become accustomed to it. Just as these incomes directly affect the livelihoods of artists, many people have also chosen to quit their 9-to-5 jobs to make a living directly on their own art, and actively participate in activities that promote the value of their works, and gain from it. Gains that have never been received before.
SuperRare’s automatic royalty distribution provides artists with a form of passive income unprecedented since the royal patronage of the Renaissance era. And more importantly, the rights that all artists can use this time are no longer the lucky few, and artists can still be their own masters, can create what they want without being restricted, and attract people from Fans all over the world.
In addition, this secondary market is 24/7 and universal, and royalties give the art industry greater flexibility, reliability and durability. In turn, artists can now spend more time developing their artistic careers and creating higher-quality works without having to endure the inefficiencies of the old market.
Collector royalty introduction
Today, we are excited to announce the next breakthrough: collector royalties.
As we continue to witness the revolutionary impact of royalties on the SuperRare platform for artists, we are increasingly convinced that the next potential that art will release is to make collecting a social activity and continue to inspire first-level and Secondary sales.
How collector royalties will work
Starting today, all artworks on the SuperRare platform that have not been sold are eligible to participate in the newly launched collector royalty plan.
Artists will continue to receive their 10% permanent royalties. This activity will not affect artists, or it will only have a beneficial impact. Artists may receive royalties more frequently because we expect the secondary market to flow Sex will improve.
The first collector of an eligible artwork will receive a 1% collector’s royalty, which will be paid from the official SuperRare fee, and the artwork will be resold in the secondary market and then resold (that is, with the first For a transaction that is not directly related to a collector), the royalty income will gradually decrease by 50% until it reaches 0 (for example: 1%→0.5%→0.25%→0.125%→0.0625%…).
The second collector of the eligible artwork will receive 0.5% of the collector’s royalty, which will be paid from the official SuperRare fee, and the artwork will be resold again in the secondary market (that is, with the first If the two collectors are not directly related to the transaction), the royalty income will gradually decrease by 50% until it reaches 0 (for example: 0.5%→0.25%→0.125%→0.0625%…).
And so on. This will allow every collector in the ownership chain of a piece of work to work hard to promote the work to promote secondary sales, as well as to promote their purchase of undiscovered works by new artists, and this will promote the healthier development of the entire market.
The plan is expected to be tested for a period of 12 months. During this period, we will monitor the behavioral changes of collectors and ensure that the plan has a positive impact on the market: increase circulation speed, increase artist royalty income, and increase art collections. Attractiveness and so on.
Since the plan may need to be further modified based on actual conditions, SuperRare will temporarily manage it off-chain before completing the contract audit and update.
The payment of collector royalties will be calculated on a monthly basis, and the data will be updated on the user dashboard after the analysis of eligible transactions in the previous 30 days.
We plan to launch a public dashboard to transparently publicize the payment of these royalties.
Why we firmly believe that collector royalties are so important
Any market needs to achieve a healthy balance between supply and demand in order to maintain growth and prosperity. It is precisely because of this that collectors play a vital role in the healthy development of the SuperRare community-providing necessary financial support and nurturing outstanding artists for the ecosystem. Artists provide fire, while collectors provide combustion aids.
This is a critical moment in digital art. In the past 12 months, we have seen the whole world understand the huge possibilities hidden in NFT. But this ecosystem still needs more collectors. The vast majority of blockchain enthusiasts still do not own their first NFT, let alone the general public. In order to let more people own NFT and continue to promote digital art to reach millions of people, we need to clear the roadblocks for collections; we need to let people bravely enter this field they have never set foot in, and let collectors understand Changing hands does not mean that the story between ourselves and this work is over. We must inspire collectors to discover more new artists and step out of their comfort zone. The most important thing is to increase the income that artists earn through royalties and permanently change the global art market.
Concluding remarks
When the royalties of the first artist were encoded into the blockchain, a revolution had already begun, and it was immutable and permanent. This spark may not be noticed at the moment of its birth, but when it continues to burn and becomes a fire that can sweep the entire industry, it can redefine the possibilities of art and artists in this digital age.
Today, we announced the launch of the collector royalty function, hoping that more people can participate in this revolution that is sweeping the art world.
Long live the revolution.
Source link: www.theblockbeats.com
