Breaking Into AHSD Economic Loop
Good morning! The Arthouse economic loop is a captivating concept that’s rapidly gaining traction in the world of web3. It’s a system that allows collectors to acquire unique pieces of digital art while simultaneously benefiting financially from their ownership. In this article, we’ll explore the Arthouse economic loop and how it operates.
Before we begin:
Every thriving ecosystem has its economic loop, and the Arthouse economic loop is no exception. The Arthouse Spirits DAO (AHSD) ecosystem has been designed to enable collectors to own rare, high-quality bottles of alcohol while profiting from their value appreciation. The system is built to create a self-sustaining cycle that benefits all members of the ecosystem.
The AHSD ecosystem operates in five crucial steps, which we’ll examine in detail.
Joining the DAO with NFT Staking
The first step in the Arthouse economic loop is to purchase an NFT. The NFT is a unique digital asset that represents ownership of a particular bottle of rum. Once the NFT is purchased, it’s automatically staked, and the owner becomes a member of the decentralized autonomous organization (DAO).
Being a part of the DAO comes with several perks. Firstly, DAO members have voting rights on significant decisions such as which bottles to purchase to treasure. Additionally, DAO members have access to exclusive events such as tastings and gatherings, and can participate in various promotions and giveaways.
The Arthouse Economic Loop
What’s more, the Arthouse economic loop operates by staking the NFT, making the owner eligible for redeeming physical bottles and ERC-20 token rewards. The ERC-20 token rewards are issued by Arthouse, and its mechanism is designed to have a positive impact on the token price.
The more ERC-20 tokens you hold, the more benefits you can enjoy.
How so?
The Arthouse team buys back tokens from the market during a part of funds that come from the liquidation event, which has a positive effect on the token price. This is a crucial part of the Arthouse economic loop because it creates a self-sustaining cycle that benefits all members of the ecosystem.
Understanding the Treasury Mechanism
The Treasury is an essential part of the Arthouse economic loop. It serves as the financial backbone of the ecosystem, responsible for managing the funds generated from the sale of the bottles and the royalties. The Treasury operates on a simple principle — 95% of the funds generated from the sales of bottles go back to the Treasury, while the remaining 5% is used to cover costs such as Treasury maintenance, valuation fees, physical vault rental, and insurance.
The Treasury’s primary goal is to continuously increase its value, making it a good thing for all members of the ecosystem. The Treasury achieves this by purchasing more bottles, increasing the value of its assets, and providing a more substantial financial incentive for collectors to participate in the ecosystem.
How the Liquidation Event Benefits All Holders
A liquidation event occurs when a Treasury is cashing out from its bottles. When this happens, the bottles are sold on the open market. This creates a win-win situation where the Treasury benefits from the value appreciation of the bottle, and the ERC-20 token holders benefit from a buy-back.
Moreover, one of the key benefits of being a DAO member is that you have priority access to liquidation events. This means that you can purchase the bottle at a lower price (only for DAO members), and you have the opportunity to make a profit if you decide to sell it later.
Royalties and the Treasury Fund
Now, let’s talk about the royalties.
The royalty system in the Arthouse economic loop is a unique feature that sets it apart from other NFT-based ecosystems. By charging a 6% fee on all NFT secondary sales, the system ensures that all members of the ecosystem benefit from the value appreciation of the bottles. Of the 6% fee, 3% goes to the DAO for organizing in-real-life events, and the other 3% goes to the Treasury royalty fund.
The Treasury royalty fund is an essential part of the ecosystem. It is responsible for managing the funds generated from the royalty fees, and its primary goal is to increase its value continuously. The fund achieves this by investing in more bottles, which increases the value of its assets and provides a more substantial financial incentive for collectors to participate in the ecosystem.
All in all, the Arthouse economic loop is a sustainable and profitable ecosystem that benefits all members of the community. The NFT staking, buybacks of the ERC-20 token, the liquidation event, and the royalty system all work together to create a fair and transparent way for collectors to benefit from the value appreciation of the bottles while also contributing to the growth of the ecosystem.
