Introducing the All-Art Protocol
The All-Art Protocol is aiming to bring constant liquidity to the world of tokenized art by creating a unique type of AMM (automated market maker) liquidity pools for NFTs. It introduces a new standard, the NFT-PRO, designed for stakeholders in the art market. The NFT-PRO standard will enable artists to customize license rights for each art piece they create and embed them into NFT-PRO smart contracts. Through this mechanism, the All-Art Protocol will protect both artists and collectors, while enabling new use cases for owning, exhibiting and trading art on the blockchain.
The world of art has always been a unique and exciting place. Intangible values are incorporated into the core of market dynamics, making emotional engagement part of the value proposition for each art piece.
NFTs are becoming a new tool that the art and crypto markets are using to sell art, but this approach has already proven to have one major flaw — the current NFT market is unsustainable and has no room to grow. Ethereum smart contracts, the cornerstone of NFTs, are incapable of handling the demand. There is a significant barrier to entry for new collectors due to this. On the other hand, the DeFi movement crafted a new playground for innovative projects, but still fails to include the NFT concept into its ecosystem due to the tokens’ non-fungible characteristics.
It is clear that the new infrastructure has to be substantially better in order to transform the status quo and move the art market forward. This means, first and foremost, that art must become a liquid asset class. Transaction fees must be cheap. Transactions must happen almost instantaneously. Energy consumption must be minimal. Registered art on the blockchain must be compatible with established regulations and copyright law. Art on the blockchain must follow international standards for provenance documentation and verification. Collectors must be able to benefit from purchased art beyond speculatory trading.
Only once proper protocols and standards are in place will we have a base for unlocking almost US$2 trillion in art value stored behind closed doors. For this to happen, collectors must have confidence in the underlying technology, and there must be a proven track record and widespread institutional adoption.
What is the All-Art Protocol?
The foundation of the All-Art Protocol are the first decentralized NFT swap pools running on Solana. The Protocol is designed to provide a paradigm shift in the art market. Its main goal is to transform an illiquid niche market into a global phenomenon, where collecting art is available to everyone and the use of art is well-defined and in line with current regulations on copyright and art law.
By implementing core ideas behind DeFi, the All-Art Protocol enables NFTs to become a liquid asset class. It gives liquidity to tokenized art by introducing a novel type of liquidity pools called cAMMs — Capped Automated Market Makers. These liquidity pools are the basis for a new infrastructure that will power an art market evolution.
In order to achieve this, the All-Art Protocol is introducing a new standard, the NFT-PRO, which solves a major shortcoming of the current NFT model by embedding license rights into art registered on the blockchain. Each NFT-PRO is represented by its own LORT tokens (License Ownership Right Tokens). LORTs are not fractions of an NFT-PRO, but a utility token used to purchase licenses for that NFT-PRO. Each license has a price in LORTs, defined by the creator. LORTs make the value of licenses interconnected as they are universally required to obtain a license.
The liquidity provider for NFT-PRO pools is a new coin — ART. It’s the glue that connects all NFT-PRO pools powering this infrastructure. The All-Art Protocol creates cAMM pools for NFT-PROs with LORTs and ART coins, thus giving liquidity to each NFT-PRO.
With ART coins as the collateral in all pools, swapping NFT-PRO LORTs between pools is easy and creates an omnipool of all NFT-PROs.
The All-Art Protocol runs on a new superior blockchain, Solana, which delivers four key benefits that are missing on Ethereum or similar clones:
- Blazing speed and cheap transactions running on L1
- Low energy consumption
- Upgradable smart contracts
The goal of the Protocol is not only to move the NFT space to Solana, but to create a more advanced infrastructure while doing it.
Who is Behind the All-Art Protocol?
The All-Art Protocol is developed by the team behind VR-All-Art, an established platform in the art and VR/XR space, based in CryptoValley, Switzerland. VR-All-Art is a platform and a marketplace for artists, galleries, museums and the general public to exhibit, explore and acquire art in virtual exhibitions. It is a virtual space, a metaverse of galleries and exhibition spaces with no physical boundaries; it is revolutionizing art exhibitions and art spaces by giving new power to artists as they are no longer constrained to the limitations of real world space and time.
The VR-All-Art team has joined Solana’s season hackathon running May 15 — June 7 to develop the All-Art Protocol. We will be working hard during the hackathon to not only develop the protocol, but to create a community around the project interested in NFT space on Solana.
More information will be released in the coming weeks. You are welcome to join the All-Art community, follow the project’s progress and engage with the team:
The All-Art Litepaper and more technical details are available at docs.all.art