AlgoPainter— Telegram AMA — May 07
On Friday, May 07, we had the pleasure to welcome to our Telegram chat:
We asked them questions about the development of AlgoPainter.
Some sentences have been slightly edited for readability but the meaning has been conserved.
AlgoPainter is an art-focused marketplace with a unique incentive structure for artists and investors, helping programmable art creators plug their algorithms, allowing final users to generate customizable pieces, using the artist’s soul with his/her final touch.
Each unique and exclusive work of art is created by algorithmic painting software or an existing artist and then minted as a non-fungible token (NFT) on the blockchain.
The Perpetual Inclusive Royalty System (PIRS) encourages users to hold the $ALGOP token as the PIRS pool share will be weighted according to the number of tokens held by each user.
Q — Ayeley from GAINS: What did you do before crypto and did you have any other previous venture in crypto? What is your role at AlgoPainter?
A — Antonio from Algopainter: Well, I was a traditional economist with a corporate career and authored an economic plan for the Brazilian Government. In 2016 I started as an entrepreneur in Crypto. Gleisson and I run a software house specialized in Blockchain corporate solutions.
In Algopainter, I serve as a Blockchain specialist. I have a role to help strategize the economic incentives of our products.
A — Gleisson from Algopainter: My name is Gleisson de Assis. I’m here to help and support Antonio Hoffert!
I’ve been working in software development for 20 years, and blockchain got my attention due to technology and economics.
Because of that, I’ve decided to work exclusively with blockchain and we’ve started a tech startup to build products for this market.
I’m a professor at IGTI here in Brazil as well.
Q — Ayeley from GAINS: What is the project about in a few simple sentences? And for how long have you been working on AlgoPainter? How many people are on the team?
A — Antonio from Algopainter: AlgoPainter is an art-focused marketplace with a unique incentive structure for artists and investors, helping programmable art creators plug their algorithms, allowing final users to generate customizable pieces, using the artist’s soul with his/her final touch.
Besides this fantastic approach, users can join an auction and receive a percentage of the sale price back. A user can create an auction and set a BidBack rate. It will incentivize all the users to send bids because all the bidders will join the BidBack pool and receive an artwork sale price percentage.
And finally, we’ve made both artists and investors electives to receive royalties when a future trade happens of previously owned art pieces.
We have been working on the concept for one year and then it was introduced in the crypto universe at the NFT ETH-Global Hackaton. We have 10 professionals working full-time in the team and I and Gleisson are the co-founders. I am a Blockchain professor at IGTI and FDC-SKEMA and have lectured worldwide. There is a book on Blockchain I authored.
Q — Twitter user @antonio50221026: Since your project works with algorithmic artists and in the future, they will implement more, what requirements does an algorithmic artist need to meet in order to be on your platform? Will they pay any kind of subscription to be affiliated with your project?
A — Antonio from Algopainter: In a permissionless spirit there are no barriers of entry regarding upfront payment or fees. The only pre-requisite expected is that the artist stakes a to be specified quantity of ALGOP to propose a new collection.
From the technical standpoint, the digital artist has to recur to a minimum development background since our integration is via API. Nevertheless, any algorithm that is procedural and capable of generating several combinations of art pieces are more than welcome
Our recommended size for an artist’s collection is 1000 unique art pieces. After that, the artist is considered retired.
Q — Twitter user @Cleitoclo: On the AlgoPainter website there is a section called “Creators’ royalties”. How substantial are these royalties depending on the effort of the artist and how much could a person earn if they make several sales or auctions?
A — Antonio from Algopainter: The PIRS is a straightforward reward system based on art royalties that include two market players, the creator himself and the stack of owners of an art piece.
How the PIRS works:
· Two parameters can be set when an NFT is minted, creator and owner royalty percentages.
· Whenever that NFT is transacted, a percentage is sent directly to the creator and another part is divided between 10 previous owners.
As an example:
Given 10% creator royalty parameter and 10% previous owners parameter.
Upon a 1.000.000,00 USD transaction, 100.000 USD would go directly to the author and 10.000 USD would be sent to each of the previous owners.
The distribution is weighted by the amount of ALGOP tokens the previous owners held when the auction ended.
So how substantial is it? Depends on the artist configured parameters. As expected, if an artist chooses a “heavy royalty” for future transactions, the transactional frequency can be harmed. The same principle applies to the contrary a small royalty may foster transactions.
Q — Telegram user Rosemary Bianco: In order to participate in the auction, what is the minimum amount I can start with? And what assets do you currently accept on your platform?
A — Antonio from Algopainter: The minimum bid is defined by the artist. The artist can consult our community to have a feeling about a good starting point.
Q — Telegram user Memo: Can collectibles really have any characteristics that users want? or does it really have to be of a specific theme? Also, after the artwork is completed, will users be able to tell the artists that they can make edits to the artwork?
A — Gleisson from Algopainter: They have defined parameters. You will be able to contact the artist to create a new piece for you, but is a regular request not based on the algorithm.
Q — Telegram user Femi Oyinloye: Can you highlight ways by which the artists, users and investors can benefit from this platform?
A — Antonio from Algopainter: Investors and artists -> Royalties
Users -> Bidback and liquidity rewards
Q — Telegram user Kevin Salom: Could you explain how you handle the royalty issue? Of the artwork, I have made how much of its value goes to the creator and how much goes to the investors?
A — Gleisson from Algopainter: These parameters will be defined when the NFT is minted or integrated into the platform. It is a strategy that the owner/creator will need to think about.
Q — Telegram user Dayo: How is the value of an NFT determined on your platform? Also, is there a fixed percentage for royalties? Can individuals who create NFTs either as an artist or through software fix the percentage for royalties in their works?
A — Gleisson from Algopainter: Investor’s royalties are defined by the user (who mint the NFT) and creator’s royalties are defined by the AlgoPainter creator.
Q — Telegram user Leya Nirmala: You mention that in AlgoPainter, users will be able to buy unique arts. But how do users ensure that the arts are completely original and not falsified or replicated?
A — Gleisson from Algopainter: Once an image is generated, all the parameters are stored in the blockchain, so no one will be able to generate the same NFT.
Q — Telegram user The Curious 👀: Could you please detail what I need to have my first artwork made?
A — Antonio from Algopainter: You only have to interact with our API and provide your own artistic algorithm.
Q — Telegram user ⋅ ℝ𝕒𝕚𝕤𝕓𝕖𝕝𝕪𝕤 𓃗 ⋅: You guys have a lot of arts. But in order to buy or sell these NFTs, do users need to complete a KYC to establish better security? How do you ensure that there is efficient safe trading within AlgoPainter?
A — Antonio from Algopainter: No KYC to buy art. The blockchain guarantee uniqueness.
Q — Telegram user 🎖Sir DeFi🎖: Will the AlgoPintor designers make my artwork only in digital format? Or will they be able to create it physically as well and send it to me?
A — Antonio from Algopainter: Digital Only.
Q — Telegram user Carla: How can an artist apply to be an AlgoPainter?
A — Gleisson from Algopainter: The integration will be via API. The artist will stake ALGOP and release to the community a way to mint NFTs with his/her signature.
Q — Telegram user Tu¢ng Xuan: What are the requirements to become a creator at AlgoPainter?
A — Antonio from Algopainter: Development background to create and integrate an algo and creativity.
Q — Telegram user Hoa Vinh l Ambassador: How will the AlgoPainter project support art creators on your platform?
A — Gleisson from Algopainter: We will provide tech support and promotions. The first action is to join our Algothon next month, a hackathon for AlgoPainters.
Q — Ayeley from GAINS: What is the use case of the $ALGOP token and how does it capture the value of the ecosystem you’re building?
A — Antonio from Algopainter: The ALGOP token will be used to acquire NFTs, participate in liquidity rewards and be used as proof of staking. Users will be able to buy art pieces from all our collections using ALGOP tokens, at the same time by holding ALGOP a user will be benefited from a proportional amount of the Bid Back share when participating in auctions. Furthermore, ALGOP can provide liquidity into the Pancake swap pool and earn rewards by doing so.
Q — Telegram user Ariana💙🌹: I saw you have a buy and burn mechanism, can you tell us more details about it? How often will this process be made?
A — Gleisson from Algopainter: Every month we will use part of the collected fee to buy back and burn $ALGOP from the market.
Q — Twitter user @mandbnga5: NFT projects are the trend that every investor is aiming for and so there will be a lot of competition in this market, so what special or biggest problem are you solving with Algo Painter?
A — Antonio from Algopainter: Let’s focus on AlgoPainter’s main differentials. Let me explain the BidBack system. Its structure is very is simple. Let’s imagine an auction for a hypothetical rare art piece in the form of an NFT:
· The vendor is interested in selling so he posts the NFT in a bid back auction with a minimum bid price.
· Potential buyers are incentivized to post bids and foster initial price formation.
· Whenever the process finishes, the winning bid becomes apparent, and a percentage of the total bid value is distributed among other previous bidders.
· The bid back distribution is weighted by the amount of ALGOP tokens the bidders held at the moment the auction ended.
The BidBack system is a way to engage people to send bids, if you join an auction and get attention due to the quality of the artwork, the price can explode, and all participants will receive a share. Maybe by sending a one-dollar bid, you will be eligible to share a considerable amount.
So by this economical mechanism, we can foster liquidity and buyer engagement iN a market it is so demanded. Pricing intangibles is not an easy task, even for crypto investors. In my opinion that is the biggest problem we nail.
Q — Telegram user Ana Manzano: Could you tell us why users should prefer that others create the NFT arts that they want in Algo Painter, when in other platforms they can create them to their preference and with very simple tools?
A — Gleisson from Algopainter: You will generate a piece of art with the artist’s soul and your final touch, so you will receive a unique piece signed by the artist and configured by you.
Q — Ayeley from GAINS: Did you raise funds so far? If so, how did you handle them? Are you planning to do any future raises?
A — Antonio from Algopainter: We had a private sale that ended pretty quick. The funds are being used for auditing and marketing and there is no intention of raising further funds. What we are going to do is launching our first art collection:
The main challenge we are financing is the development itself.
Q — Ayeley from GAINS: What stage is the project at? And what should we expect in the coming months?
A — Antonio from Algopainter: Well, we are live and our first algorithmically collection is coming on the 10th. We have a well-defined roadmap.
A — Gleisson from Algopainter: The main goal for the next months is to release the auction system (BidBack System and PIRS)
Q — Ayeley from GAINS: Are there plans to support trading on other DEXes? Will we see $ALGOP on Uniswap for instance?
A — Antonio from Algopainter: For the moment AlgoPainter will not be traded in Uniswap. That is not our short time goal because BSC is booming and the fee structure is favorable. After we finish the development of the auction platform we will provide cross-chain integrations with other protocols and do bridges.
One point I would like to highlight is that, as a marketplace, other protocols may desire that their NFTs become traded within our auction system. For the moment the protocol presents decent liquidity at PancakeSwap.
Q — Telegram user Yaritza Gutierrez: Really the collectibles of Algo Painter will be limited only to be traded and already? Or do you plan to implement products such as staking, governance with NFT, or some other product in the long term?
A — Gleisson from Algopainter: The auction system will be released on 08/01. For now, you will be able to mint, see the gallery and transfer the NFTs.
A — Antonio from Algopainter: Staking is already on the way. It is not a governance token.
Antonio, Gleisson, thank you for coming in. It was a pleasure having you in our group today, and taking the time to answer all our questions. Anything else you’d like to add? Where can we follow you to stay updated? — Ayeley Commodore-Mensah from GAINS Associates
Next monday we will start the first collection and we are whitelisting 100 addresses to buy the first batch, so join our telegram group and stay tuned! Thank you very much! — Gleisson de Assis from AlgoPainter
There are two opportunities to point out. Liquidity Rewards and Gwei’s collection are going live next week. So for those who enjoy super gems at early stages with a clear value proposition AlgoPainter is a strong candidate for your attention. Thanks a lot! — Antonio Hoffert from AlgoPainter