We started the ARTDECO NFT project to reward creators and our platform users and as such, our first goal will be to structure the token economics of the platform to incentivize new creators of digital art and collectibles to create NFTs and sell them on Our NFT Marketplace post-launch.
Quick note: ARTDECO is both the platform name and also the token symbol.
The ARTDECO token will be used across our ecosystem to facilitate our platform and boost engagement by creators and buyers & sellers. The current token economy is shared below.
The $ARTDECO token metrics are structured to capture network participants who share our vision for the long term success of the project.
Tokens will be rewarded to users and creators as soon as the platform is live.
However to ensure transparency we will be vesting/locking our team tokens and reward/liquidity mining tokens.
This lockup is especially important to increase trust for our early investors and Community.
Buyers and users of the platform should be able to accumulate and hold ARTDECO without worrying that team members will sell large amounts of tokens all at once. As such, we propose a slow-release vesting schedule whereby the majority of the token supply is locked early on, then tokens are released on a daily or weekly basis.
UPDATE — The max supply of ARTDECO tokens will be 5 billion which will be burned systematically till we have burnt 50% Of The Total Supply
Purpose of the ARTDECO token
$ARTDECO will be used for the following:
- Incentivizing creators: rewarding creators who create and add NFTs to the ARTDECO platform.
- Maintaining Governance: decisions to integrate new protocols, edit pool parameters, edit risk parameters, etc
- Fee Discounts: the token can be used for discounts on the ARTDECO platform
- Payment For Profile Verification: Since Our Platform is decentralized, a malicious user can create a replica on an original. How do we mitigate that? we added a manual verification in which we do our due diligence on the User before applying the blue tick.
Let’s take a closer look at each aspect of $ARTDECO.
As NFTs get more popular we anticipate that the issuance and sale of NFTs will very quickly become mainstream.
To ensure that the ARTDECO project succeeds, our first priority will be onboarding good creators onto the platform. The problem is that most people — including artists — have no crypto experience. As such, garnering interest may be challenging. To address this challenge, we propose a rewards program called the Creators Fund to incentivize creators to join and use the platform (i.e., create and list NFTs).
Features of the fund will include, but are not limited to:
- Complete funding of the gas cost needed to mint NFTs
- Beginner-friendly staking and usage solutions that do not require Metamask (similar to tor.us)
- Early-adopted rewards, with higher rewards bonuses going to creators who use the platform earliest
- Outreach and engagement on other media platforms and communities. At the outset, this will be predominantly on Instagram
- Onboarding and support for new creators and users
Additional features of the Creators Fund will include a manual check for rewards allocation at the start. This is to avoid wash/bots trading, the type of which befell Rarible. Later, we will have a formal code-based verification system to ensure the authenticity of all creators and their work.
Copycats and fakes are becoming a problem in the NFT space and will continue to be an issue, so it’s important that all work on ARTDECO is 100% genuine.
The ARTDECO DAO and Voting Rights of $ARTDECO Holders 🦄
Our ultimate goal is to evolve towards a Decentralized Autonomous Organization (DAO), where all decision rights will belong to the platform users.
The ARTDECO token, awarded to the active users of the platform, will act as the governance instrument: it will enable collectors and creators to vote on multiple upgrades and decide how the platform should develop further. This makes the governance of the platform directly responsive to our most active users and brings ARTDECO closer to being a public good operated by the community members who value it most.
I. Voting on system upgrades
The key part of token holder rights is to have influence over the platform development. If the community wants it — everything is possible.
ARTDECO holders can submit and vote on proposals about:
- Allocation of ARTDECO trading fees
- New ARTDECO features to be developed or implemented by our team
- The use of ARTDECO to further decentralize the governance and development of ARTDECO platform.
In the initial exploratory period for ARTDECO, most votes will initially be “advisory votes.” we anticipate abiding by, but are technically non-binding.
However, over time we will work with the community of ARTDECO holders to create a more formal governance structure where more votes can be binding and trustlessly implemented. ARTDECO does not confer any legal rights to manage the ARTDECO business or to receive profits from ARTDECO.
II. Moderating creators on the platform
Establishing community-based moderation is a challenging task. We are considering implementing a system analogous to Aragon Court or entering a partnership to solve it. More on this follows in the next section.
Why Lower Emission Matters
As we saw with Rarible and many other networks (both NFT and non-NFT), new projects are particularly prone to exploits and gamification. If there’s something that can go wrong, it will — and we expect the same to happen to ARTDECO.
A lower emission schedule early on — ie, smaller circulating supply — may make the protocol less attractive to attackers, given that the monetary reward is less. On the other hand, exploits or gamification may cause larger price shocks. Nevertheless, we view any early challenges as short term pain, long term gain. By identifying vulnerabilities and exploits early, much larger losses are averted in the future.
Key point: ARTDECO’s token economy is not intended to further increase the velocity of the token itself, nor increase its utility. Rather, the focus is to incentivize creators to use the platform, and holders of ARTDECO tokens to participate in governance or function as a liquidity provider in the secondary market.
Proposed Issuance Structure and Vesting Schedule 📅
Additional to the marketplace rewards mining, ARTDECO will allocate 3% of the total supply to a Creators Fund, rewarding creators for 10 years.
Note: It’s critical to the overall health and success of the protocol, investors, and users that market manipulation be avoided. Several recent projects have suffered during launch, due to massive accumulation by bots. To avoid bot manipulation, incentivize holding, and reduce sell pressure early on, an additional withdrawal fee will be implemented for the first 30–60* days of liquidity rewards mining (*exact timeframe TBD).
Deflationary Burn Function 🔥
ARTDECO will burn 50% of the Ecosystem Fund and Mining Rewards over the next 5 years. Our burn function will be similar to the BNB Burn mechanism which takes into account multiple factors including:
- Budget not used
- Transaction Fees
- Network growth in TVL and users
- The stability and health of the protocol
The goal of the burn is deflationary, creating price stability and encouraging user network growth in the form of governance token holders.
Further information about the proposed burn structure will be provided in subsequent blog posts as well as community voting.
Our current proposed model for the burn mechanism is as follows:
Network Usage Burn
Fees generated on the platform will be accrued to governance tokens holders of the DAO as well as the ARTDECO treasury. Burns will only be initiated quarterly on the treasury side of ARTDECO.
Budget Network Burn
A proposed budget will be set forth for platform expenses including developers, marketing and network incentives. Funds not spent will be burned on a 6 month basis.
The initial proposed token supply for the ARTDECO Rewards and Ecosystem Fund will also be reviewed on a 6 month basis, and subsequent rewards not given to creators or buyers of NFTs will be burned as well. The goal of said function is to provide a strong deflationary pressure for overall supply.
This applies only to token reserves in the Liquidity Mining rewards and Ecosystem Fund, which together equate to 50% of the token supply.
Both proposals will be open to vote and review by the community before each proposed burn.
API and DaaS Token Function 👨🔬
As are moving towards the path of network aggregation of all BSC NFT listings we plan to allow additional platforms to pull from our listings using an open API. This is similar to how Rarible and other platforms pull directly from data on OpenSea.
This will allow NFT creators to access creator liquidity preference as well as open up the ability to swap various assets using NFTs. ARTDECO will require data partners to stake ARTDECO in order to pull from our APIs.
Required token lockup will scale with data usage. More information on this to follow in v2.
We are embarking on the The ARTDECO project with 3 functions in mind— incentivize creators, maintain governance and fee discounts.
ARTDECO is a cryptocurrency experiment project and should not be seen as an investment.
Thanks for reading.
~ ARTDECO Team