KnownOrigin + MetaCartel DAO = DAOSaka
Can a DAO fund the creation of NFT-based cryptoart which can be used as a vehicle for making profit?
At KnownOrigin we have been interested in DAOs for a while and have been following the meteoric rise of MolochDAO and the almost weekly announcements coming in from the DAO scene with new, innovative and interesting applications of using decentralised autonomy.
As a result of meeting MetaCartel DAO collective during Berlin blockchain week an interesting experiment has been proposed using that existing infrastructure of KnownOrigin and a DAO to fund and commission new digital artworks. (original proposed commissioned article from the MetaCartel)
The hypothesis
Can a DAO fund the creation of NFT-based cryptoart which can be used as a vehicle for making profit?
This is a simple hypothesis but hopefully testing this out can provide some interesting insights on the how a DAO can be used to create value via a commissioned creative process that potentially could increase the shares in the DAO to value greater than the initial funding.
The rules of engagement
- An open call for artists from the KnownOrigin community to submit a proposal of a piece of art to be included in the DAO experiment
- Artwork ideally should be Osaka/Japan themed as one of the goals is to tie this into the Devcon 5 conference in Osaka and pump the art sale during this event
- Artists are given until the end of the week (Sunday 22th September) to submit their proposals / artworks
- We will select 5–7 pieces — no more then one per artist will be accepted
- Each accepted selection with get an equal share of the total amount pledged to the DAO — estimated to be between $1000 and $1500 USD
- We will then mint the NFTs on behalf of the artists using the KnownOrigin platform to list and sell the digital assets
- At our discretion, we will list the artworks with a variation of edition sizes from 1 to 100
- We will list the artworks at a range of prices with the goal to be able to return a profit to the DAO. For example, we may have an edition of 25 priced at $15 each and some ultra rare 1 of 1 editions priced at $400.
- Once listed on the platform, the commission split will be as follows: 90% of the sale price go to the DAO, 5% go to the original commissioned artist, 5% goes to KnownOrigin
How KnownOrigin will facilitate the sales
We have a little known feature which allow us to set a second commission receiving address at the point of primary purchase along with a percentage, this is how we can split funds between the artist, DAO, and KO.
We will introduce a simple one pager on the site which will list the DAO works as well as adding a permanent section on the home page until the artwork have either sold out or until Devcon 5 Osaka sale is ends (editions will be available via the regular gallery after the promotion for Devcon).
How will be know if it has been a success?
We want all those involved to be happy with their investment into the experiment. This means the commissioned artists are paid, the DAO backers can see their return on investment, and the collectors of the artworks are happy with their purchases.
Even if we do not break even, we should have learnt a lot about the appetite for funded artwork, DAOs, as well as understanding what it takes for ourselves, KnownOrigin, to be agile and innovative in order to participate in such ventures.
After Devcon 5, any remaining artworks will be left on sale via the KnownOrigin dApp. Therefore the DAO’s share value can always increase until all digital assets funded by the DAO on the market are sold. Contributors to the DAO can rage-click and cash in their shares at any point during the experiment.
The future
Already from this process we have learnt some things we we thing could help those participating in future similar projects, for example:
- Ideally the DAO should be the ones making the decision on the commissioned artworks - a possible suggestion of a “DAAC — ‘Decentralised Autonomous Art Commission’”
- In a more joined-up trustless process the DAO code should have a public payable function so you can pledge funds in return for zero shares — kind of like a donation.
- Potentially a DAO could mint the artworks directly on KnownOrigin when a proposal is accepted.
- At KnownOrigin we would like to list more artworks via organisations and 3rd parties not just artists/collectives themselves — enabling the DAO has raised some areas which need further thought and investigation to facilitate this.
Be part of history
Get involved, pledge some capital, submit an artwork proposal or watch from the sidelines. How do you think DAOSaka will perform, please let us know?
Follow ups— @DAO_saka | @knownorigin_io
Pledge to the DAO — https://daohaus.club/dao/0x7D1a4fC6Df3B16eB894004A4586A29f39Ba6d205
Remember this is an experiment. There is no guarantee any assets will be sold meaning shares could be worthless after funding the art commissions.
Check out other works on KnownOrigin —https://knownorigin.io
Join the MetaCartel — https://metacartel.org
