The Track from Prestigious World Asset (PWA) to Non-Fungible Token (Digital Asset)
Quantum Projects Group will enter into an original collaboration to develop a suite of blockchain-integrated products connected with a prestigious collection of historic masterpieces from celebrated artists throughout history.
This record of immutable transactions designed by EPEIUS, a blockchain software company, will leverage highly developed technology offering a new paradigm in art collecting and preservation, art consumption and exhibiting, with provenance authentication, community building, and enhanced asset value extraction.
We will begin the process, after contract negotiations are completed, with three physical art works, e.g., “The Madonna of Loreto” by Raphael, “Adoration of the Shepherds” by Rembrandt van Rijn and Benjamin Cuyp and “La Principessa” by Leonardo da Vinci, all graded as Prestigious World Assets (PWA’s.)
This system creates a pool of potential crypto native clients with liquid assets requiring on-chain solutions. Potential investors can procure art, store wealth, mitigate taxes and relocate on-chain wealth into assets easily sold throughout traditional auction houses. Please refer to the current newsletter, MANIFEST, for a comprehensive explanation of this venture.
A blockchain is a decentralized digital ledger (a global network of computers, no single entity has control over the platform once it is created) that records and transacts with stored data. For art, the primary focus for blockchain has been provenance assignment.
Provenance is the recorded history of ownership of a work of art from its creation to the present day.
The mechanism to achieve provenance of digital files is called minting. Minting converts a data file from an easily replicated digital asset into a unique and singular digital collectible, a Non-Fungible Token (NFT.)
This NFT, a unique piece of data, is recorded and retrieved on a blockchain through applications known as Smart Contracts. Smart contracts are code written into a blockchain that automatically executes agreements between two parties when certain conditions are met. Those actions are agreed upon by negotiating partners outside the chain.
Each masterpiece will have its Proof of Existence (PoE) minted to bitcoin SATS using the Ordinal protocol, and its Deed of Ownership (DoO) minted to the ethereum chain (EVM).
A Near-Field Communication Chip is attached to the frame.
This is the first collection offered to the public.
The Ethereum ecosystem was the first established blockchain with smart contract inclusion. This resulted with several standards including ERC-721 and ERC-1155.
Both token standards are the main blueprints created by Ethereum that allows developers to create and deploy non-fungible tokens on top of its blockchain. Along with the DoO, a collection will be minted on the Ethereum Mainnet, as ERC-721C tokens for each masterwork’s limited collectible properties.
A collection of NFT’s, 100 – 350 NFT’s per masterpiece, will be minted (created) for sale to the public. This collection will feature ERC-721C tokens.
These NFT’s will establish a digital collectible product component featuring a limited run of physical lithographic reproductions for each PWA. NFT owners can claim their physical copy of their lithograph by burning the NFT (digital) version, claiming the corresponding physical asset. This process is referred to as the ‘burn mechanic’.
This mechanism introduces a deflationary aspect to the Collection, enhancing each token’s value over time.
Each lithograph and reproduction will also feature an NFC chip that verifies its authenticity and its linkage to the original work, ensuring integrity and collector trust as well as enhanced collectability, all lithographs will be viewable in a mobile application, to allow users to share their collections.
This second NFT drop will also feature 1 rare oil reproduction and 3 serigraph editions of each PWA.
The burn mechanic creates a game theory for NFT collectors. Game theory is interactive decision-making where the outcome for each participant or “player” depends on the actions of all participants. Some NFT collectors will hold their asset as inventory decreases with each physically collected lithograph. Others will attempt to collect specifically numbered lithographs and /or possess one of the rare NFT’s connected to the oil and serigraph reproductions.
An enhanced Coffee-Table style Book will be published and launched at ART BASEL in Miami, December 2024. This is the third collection that will be offered to the public.
The masterpieces in the QPG Art Collection will be centered on each artist’s moment in time, their adversities and triumphs, both public and private, that resulted in their body of work. The future Masters of the Digital Web3 Art Movement will be positioned in a direct line to the Masters in art history.
This book will set the stage for exclusive collaborations with present-day artists in the Web3 space. One effort will center on the Digital Collective for Artist Collaborations. This is an opportunity for new artist development and management completed in-house by DiscoverArte, a QPG subsidiary, currently under formation, that will be tasked with establishing product pairings and managing the PWA.
Impact of the DAO
The DAO is an exciting option for Quantum Projects Group to mentor new artists and promote community involvement.
This project utilizes the DN404, a hybrid digital token. This token incorporates a governance coin to facilitate: 1) a liquidity event and 2) provide token holders with the ability to influence the pairing of artists and masterpieces. This promotes QPG’s core Mission of community building. Governance tokens are cryptocurrencies that are a key to on-chain decision-making.
Unlike crypto assets such as bitcoin that are used only as a means of payment, governance tokens incentivize community participation by giving holders voting powers that influence the future direction of a project.
Consequently, a virtual cycle of value creation is set in motion.
Benefits for the token holders are expansive and could include exclusive minting rights to new works in the Artists Collaborative Series, discounts at exhibitions, access to VIP experiences, special merchandise access as well as artists’ interactions across a spectrum of media and events supporting signed hardcover books.
These additions to the Digital Collective Series will result in a lasting monetary legacy. How? The DAO’s activity in producing real world events grows the QPG subsidiary marketplace, integrating the combined strength of the physical and digital inventories for unprecedented market exposure.
Another Option: Fractional Ownership of Art
Art ownership has experienced a substantial development in recent years with the emergence of fractional art investing. Prior to this occurrence, investing was thought of as an exclusive practice reserved for wealthy individuals and those with a passion for fine art. This approach to art collecting allows individuals to invest in a single piece by purchasing shares or fractions of an artwork without having to acquire the entire piece.
Diversifying a portfolio with fractional art ownership as an alternative asset does not demand a large portion of one’s discretionary income. It is a fascinating way for increased accessibility to the art world. The market has a reputation for being somewhat unregulated and lacking in transparency for the investor.
Quantum Projects Group is developing a new model that will educate the inexperienced investor. With the blockchain technology developed by Epeius, we will assuage the commonplace fears associated with these investments and offer a level of liquidity and flexibility that adds to its appeal when compared to traditional art ownership and other platforms out there.
Just as with any investments, there are market risks and volatility, not to mention the reputation of the artist one invests in.
Augmented Reality
An Augmented Reality (AR) app will be developed that would allow potentially anyone an immersive experience with a masterpiece. This enhanced art involvement would include a stroke-level experience building out from the artist’s studio, moving into the artist’s city and notable aspects of the environment and finally, to a virtual museum where a history of the art style is explained using an Ai-powered Historian, e.g., the Italian Renaissance or the Dutch Golden Age.