Mr. Pratik chadhokar is an Indian Forex, Cryptocurrencies and Financial Market Advisor and analyst with a background in IT and Financial market Strategist. He specialises in market strategies and technical analysis and has spent over a year as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the Financial markets.
Decentralized Autonomous Organizations (DAOs) have brought forth a revolution globally. Bloomberg news once wrote regarding the ConstitutionDAO that the organization shows the “power of a DAO.” Since the concept’s inception many DAOs have emerged to empower their members. DAO4ART, a disruptive platform to create art-based DAOs, is attracting several creators on the platform, by combining the ERC20 and ERC21 standards with a block structure to create an incentive-compatible model. Let’s have a quick look at the benefits that this network offers.
A Brief Introduction to DAO4ART
The platform is focused on a variety of creators that come together to deliver artworks through collective effort. The company has come up with a whole new organizational structure where different players (the DAO Creator, the Canvas Creator and the Minter-Owner) are incentivised to create the best art collection possible.
In essence, it is a DAO to produce more DAOs associated mainly with the creative field.
By utilizing an incentive-compatible framework and automatically generating ERC20 tokens, both DAO Creators and Canvas Creators are promptly and sustainably rewarded. The present iteration distributes 70% of the mint sale directly and instantly to the artist’s wallet, while the remaining 30% is deposited into the DAO’s Asset Pool. Furthermore, the artist receives an equivalent amount of DAO Tokens as a reward. The artist can convert these tokens to Ethereum upon receiving them.
How Creators Can Use DAO4ART
A DAO creator will establish the rules for a new community. Moreover, he will determine all the aspects upon initiation of the product including NFT mints, their royalties in the secondary market and more. A Canvas creator is responsible for creation of a canvas for the DAO.
This will then be presented to the Minter where he chooses whether to acquire the art or not. The minter is an essential part of the whole ecosystem as he is providing true value to the creator, and at the same time has the power to shape a collection, before it is trading on the secondary market.
Value Creation in DAO4ART
The protocol will create a unique token associated with a new DAO created on the network. The token then will be used to incentivize the creators. Moreover, the NFT collection linked to the DAO is minted via set Mint Window. A DAO Recycle Block (DRB) determines the incentive distribution to the artists based on total sales.
The DAO tokens will play an integral role to incentivize the creators. The DAO Asset Pool will affect the value of this token means higher market value will push the token value.
Users can also swap their tokens to generate yield through the DAO Asset Pool. DAO auctions allow the creators to sell their artworks where minters mint the NFTs in canvas where minting price will increase twofold after each mint.
The Underlying Protocol
DAO4ART uses smart contracts, self-executing programs that can be designed according to the organization’s needs. Users can create a DAO, set up the rules for monetizing artists’ works and more.
Final Summary
Artists have a hard time monetizing their works until it catches the eye of an affluent or art enthusiast that values creators. DAO4ART is a great platform empowering the creators by leveraging the concept of Decentralized Autonomous Organizations (DAOs).
The platform offers the creators a whole new world where their art is valued, driving productivity and efficiency.
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Source: https://www.thecoinrepublic.com/2023/03/15/dao4art-is-a-thumbs-up-to-the-creator-economy/