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About ALLOVR
ALLOVR is a decentralized fine art and digital art network that establishes a novel collaboration model for artists, gallerists, art collectors, and society in general. ALLOVR provides a token economy tailored to the art market and enables both emerging and established artists to interact with their communities based on aligned economic incentives. High transaction costs – primarily resulting from asymmetric information – are significantly reduced through lowered market entry barriers, economic signaling and alignment, price transparency and verifiable authenticity. Artists and gallerists can build their own token economy and profit from secondary market royalties. Art collectors and art enthusiasts benefit from shared profits, improved authenticity, and transparency. Many of the ALLOVR network’s core principles and economic incentives are inspired by the 1971 Artist Contract originally designed by Seth Siegelaub and Robert Projansky. ALLOVR is 100% community governed and implemented on the Solana blockchain.
Opportunities
Profit share
When an artwork token is created, it can have certain contractual elements coded into it that will execute automatically when the right conditions are met. Most importantly, a distribution of royalties or profit share can be triggered when the artwork gets sold. Following the example of Siegelaub’s “The Artist's Contract”, 15% of the profit of any secondary market sale will be distributed by default back to the creator.
When artists decide to distribute their artist tokens among their communities, the abovementioned profit share will not be allocated entirely to the artist anymore, but following the distribution of their artist tokens. For example, if an artist distributes their artist tokens among him or herself and 9 other people with 10% of the total amount of tokens each, the 15% profit share will be split among all of them in equal parts (1.5% per person). The artist tokens thus allow the artists the freedom to incentivize their communities and align various actors in their market according to what works best for them.
Community-building
Through the distribution of artist tokens, artists and collectors are connected on the ALLOVR platform. While some of the inbuilt mechanisms of these communities are of monetary nature (see above), artists may choose to engage with their artist token holders in various and creative ways, and build closer relationships between creators and their communities.
Transparency
The history of an NFT or artwork token on the blockchain is immutably recorded and publicly available. This doesn’t mean that the buyer’s or seller’s clear names are recorded, but at the minimum a change in owners’ wallet addresses is logged.
Today, galleries know their primary market (those they sold to), and artists sometimes do as well, if their gallerists are willing to share the information. Neither gallery nor artists know much about the secondary market of their artwork, unless they occasionally gain that insight through their networks or if an artwork surfaces at an auction. The transparent records on a blockchain can give artists and galleries a better understanding of their secondary markets, with the opportunity to engage with this wider community directly for future sales.