There has been plenty of debate about the driving forces of the current NFT boom.
A bubble fueled by speculation, the next artistic renaissance, a little of both.
I started my venture as an investor and speculator. And even though I’ve gently begun to take on more of a collector mindset, my purchases have largely been made with value in mind. Is the artist notable? How scarce is this? Can I flip this for more later?
I haven’t yet made a purchase purely for the art.
I’m guessing most of you haven’t either.
But I’ve been thinking. Can we create an environment that might truly feature the art?
Here’s a silly marketplace idea I’ve had in my head for a while.
The marketplace starts with a small number of artist collections. For the sake of this example, let’s say just 10.
When placed in the marketplace though, the pieces don’t indicate their respective artist (feature the art, not solely the artist!)
All collections have a max mint number of, let’s say 200 for this example, and a minimum mint of 1.
Once the marketplace opens, it will operate similar to the English Premier League.
Pieces are able to move freely, all sold for the same price (similar to an open edition)…but after a certain amount of time, the bottom X% of pieces will be removed from the marketplace (relegated), and will be filled with new artist collections from a list of reserves.
For example, after 2 months, the bottom 20% of collections may be removed from the marketplace, stopping their mint count, and kickstarting a collection of a new artist.
On the flip side, if a collection is so popular that it reaches the max mint number, 200 in this example, they are also removed from the collection, and filled with a reserve.
This could create benefits for both the “winning” and “losing” artists and collectors.
These creators who sell out will have collected more money through initial sale. Also, their respective collectors perhaps will have created a higher floor as a result of the increased demand.
As for those that are relegated, though they were not rewarded with the initial boom in sales performance, they may ultimately benefit from increased scarcity as a result of the lower print number. This increased scarcity benefits holders, and might lead to more desirable prices on the secondary market, sales for which the artist is still rewarded.
The marketplace will operate “seasonally,” and at the end of the season, all collections artists will be revealed.
Imagine the potential surprises.
You buy a piece because you love the art….and at the end of the season, you find out that your eye has been rewarded because you picked up an emerging artist.
And at worst, buying without knowing the scarcity ahead of time, or knowing the artist, should ensure the catalyst for purchase is mainly for the art.
What do you say? Anyone smart want to help me build this?