K21 will collect 21 pieces of encrypted artworks and manage them through smart contracts. Its tokens represent the ownership of the collection library and can be used to vote when they are sold.
Written by: Leo Young
Recently, Beeple’s works were sold at Christie’s auction for nearly 70 million U.S. dollars, and NFT has received widespread attention. In this context, a closed art collection library project named “K21” emerged and received investment from institutions including Mechanism Capital, Divergence, and Nascent.
K21 is a closed art collection library, which can also be called a “closed art machine gun pool”, in which 21 art works will be collected, all created by well-known contemporary digital artists. According to it, ” The aim is to allow artists and investors to receive income from art transactions, and to reshape art collections, charity, and art exhibitions and custody.”
What is the K21 Collection Library?
According to the official introduction, the artists identified in K21’s current collection are: Alex Mordvintsev, COOL 3D WORLD, David OReilly, Filip Hodas, Hank Willis Thomas & the Wide Awakes, Jenna Sutela, Liam Gillick, Pak, Paul Chan, Precious Okoyomon , Rachel Rose, Raoul Marks, Rebecca Allen, Rirkrit Tiravanija, Simon Denny, Suzanne Treister, Terrell Villiers. There are four more to be determined.
After the painter’s work is completed, it will be cast into NFT and stored in the K21 collection library. The collection library uses Gnosis Safe multi-signature wallets. After the collection contract and purchase contract are completed, all collections will be transferred to the contract.
The K21 collection contract is a closed contract. After 21 works are full, the contract will be closed. At that time, the contract authority of the collection library will be transferred to the group purchase contract. After the transfer, the permissions cannot be changed. As long as someone deposits US$21 million in equivalent funds in the group purchase contract, the contract purchase offer is triggered.
Holders of K21 tokens can reject a purchase offer with a vote rate of 21%. If the purchase offer is rejected, the next trigger price will increase by 7%. The rejection rate did not reach 21%, the collection of works in the collection was successfully traded, and the token holders got the funds for the sale of collections in proportion.
The contract is expected to be audited and launched in the next 90 days.
In addition to the 21 works in the collection, K21 will also cast original works by related artists, called XNFT. The price of XNFT is more close to the people, so that more people can have the opportunity to collect digital art. The artist receives half of the income from XNFT sales of works, and the remaining half is distributed proportionally to K21 token holders. XNFT collectors can also use K21 decentralized financial applications to increase additional income.
K21 token
K21 ERC-20 tokens were issued on March 12, 2021, with a total of 210,000. Each token represents part of the ownership of the collection.
K21 is not a governance token, but token holders have the right to vote against the transaction of works in the collection library.
For example, if someone purchases a collection through a smart contract, and K21 holders vote against a total of 21%, the transaction can be rejected. If it does not reach 21% of the negative votes, the transaction income will be distributed to each token holder in proportion to the token holdings.
Token use
K21 purchases of collection funds are mainly obtained through private placement of funds from professional individual investors or institutional investors through tokens.
Currently, institutions that invest in K12 tokens include Cluster Capital, Collider Ventures, Compute Ventures, Divergence Ventures, Mechanism Capital, and Nascent. There are also some individual investors.
Individuals and institutional investors obtained more than 61% of the total amount of tokens, and the average price of the tokens obtained was approximately US$0.124.
Token distribution
More than half of K21 tokens are used to purchase artworks and support arts and social welfare undertakings.
The community only accounts for more than 21% of the token share. It will be distributed through measures such as mining mechanism, K21 / ETH transaction pair locking liquidity fund pool rewards and other measures. Liquidity rewards to be determined.
In addition, the 17 collaborators who directly participated in the collection-related work received 15% of the K21 total as a salary reward, and they did not receive any cash compensation.
Other small amounts are used for marketing and cash reserves.
Token lock-up
Artists, collaborators, and private equity tokens are all unlocked with 90 antennas, and 10% will be unlocked from the date of token issuance.
Individual and institutional investors participating in the private placement partly purchased Uniswap’s ETH-K21 trading pair LP tokens. The initial price of each K21 LP token is USD 0.124. LP tokens are locked for twelve months. After the lock-up period ends, 12 months will be linearly unlocked. This part of LP tokens accounted for approximately 12% of the initial circulation.
Token distribution and lock-up, source: Art for the Next 100 Years. Kanon Releases Key Details of the K21… | by Kanon
The tokens of artists who choose to engage in charity will begin to circulate on the day they are issued. The tokens for mining and community incentives are also in full circulation from the date of issuance.
Kanon, the development team behind K21
The development team behind K21 is called “Kanon”. This is an anonymous team specializing in encrypted art collections and exhibitions. K21 is the first decentralized encryption art protocol initiated by Kanon.
In the K21 white paper, it reads: “Kanon was created to develop the art field (decentralization) agreement for the next 100 years.”
According to its official introduction, the Kanon team includes art curators, cryptocurrency entrepreneurs, blockchain engineers, full-stack developers, as well as designers, lawyers, and marketers. He has more than 50 years of work experience in the field of contemporary art and digital projects.
In addition, Kanon also stated that it will cooperate with Art into Acres , an art charity project, to protect 210 million acres of virgin forest in Peru.
Reference source
Official website and K21 collection:
https://k21.kanon.artK21 release:
https://docsend.com/view/ukxh9eqentdfas6iK21 ERC20 contract:
https://etherscan.io/token/0xb9d99c33ea2d86ec5ec6b8a4dd816ebba64404afK21 Genesis LP Fund Pool (Subsequently transferred to Uniswap):
https://balancer.exchange/#/swap/ether/0xB9d99C33eA2d86EC5eC6b8A4dD816EBBA64404AFK21 Vault:
https://gnosis-safe.io/app/#/safes/0x32EEA10639B92c71846edCC8D3415Cf6eff0645D/balances
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