Since 2018 the Ethereum art movement has undergone serious changes from a small market with only reaching 1,000usd per artwork at the highest level of sale. To a much more serious market with sales of 1,000 becoming almost normal and a sale of 55,555 being the record. With money as always comes in fighting what was a simple community of visionary individuals (all platforms and artist included in this statement), became a complex game of political moves. With money came a host of new people into the space and our small community stands on the edge of breaking into the wider world.
We have encountered some major issues at a small level, Censorship, Wash trading, high gas fees and bot accounts. Which one is the bigger issue is up to the reader to decide, but these issues will grow at scale in a way no one in this space can even dream of. The digital art space is on the way to the top while we are still tiny, this space has started to make ripples that will become waves in short order.
The problems above can all be addressed except perhaps wash trading as everyone with a chart on their site does it. Not purposely but they do users on their site wash trade. Some would argue that certain platforms do more to create incentives for wash trading, but really does it matter charts are incentive enough.
In this white paper I will talk about the BAEs soon evolution into web3.
Before the tech we need to talk philosophy
Freedom of speech and creativity are in danger. What offends people has become an issue to some people worth taking hours out of the day to argue. While the conversation may start as ‘I am concerned’. We all know the implications of such statements; one person makes a small statement then a slightly bigger one then suddenly we are talking about banning something. ’I am concerned’ is a dog whistle used by authoritarians to get things they do not like banned.
We make this clear; we will never censor, block, or ban anyone unless they have done something illegal or infringed on copyright (on our platform). We have no right as a platform to say what is or is not art that is between artist and collector.
If you do not like this, you are welcome to create your own platform as shown in this post and censor it however you want. https://blockchainartexchange.com/how-to-build-your-own-crypto-art-allery-to-sell-nfts/
The next stage of the bae will be a web3 site with open token creation, a marketplace, product pages and my collection. The site will operate at first on a simple contract for fixed sales, then later will utilize our auction contract at the point that usership is high enough for auctions to make sense. The BAE erc-20 token will also be distributed to artists who sell on the platform. Our web3 site will have no verification system, no ticks, it will be an expression of the free market. We will aim to prevent copyright infringement and bot accounts via simple physiological methods. If copyrighted imagery does make it on the platform, we will of course remove it.
The existing bae WordPress will continue to function but will become the centre for curated collections. The barrier for entry on the WordPress will be far greater. The WordPress will continue to operate as it has; paying all fees and accepting most payments. AS the web3 will not accept fiat of any kind to start with we will keep it to serve this purpose. The fees for using the WordPress for sale are 20%.
The Bae will charge two fees a 0.0075 token creation fee (maybe made lower dependent on eth prices). And a 10% sales fee, for resales it will be 10% as well. The first fee of token creation will go directly to the BAE DAO. 10% sales fee on primary sales will go to the BAE for running costs, resales will go to the DAO pot as well.
An open token form with a small fee will help scammers and copyright infringement due to the small fee it will create a small but important psychological barrier to entry. As for bots they will simply be paying the community for their activity.
- 0.0075 eth to the DAO pot
- 10% on primary sale to the BAE
- 10% on secondary sale to the DAO pot
These fees are subject to change and some maybe lower and others higher in the end product.
The Pure details of the BAE DAO can be seen at the link below.
Every time something sells primary on the BAE artists get a BAE token At a rate of 1 for every 10 usd sold, these tokens are non-transferable like really you can’t transfer them our contract won’t allow it. So, they can’t ever gain a value outside of the bae use case. On distribution of the pot the tokens also serve the purpose of representing the share of the pot the artist receives so if it is 1000 and you have 1 token you will get 1 (although in this example you would get 0 due to gas fees). The key points:
- The BAE token can only be earned by artists on the 1st sale
- They cannot be transferred.
- Anyone with over 100 BAE tokens can call a vote to decide to do with the pot of money.
- 1 token = 1 vote
- By default the pot will distribute between all BAE token holders; if gas is too high it will roll over until the next vote.
- votes are held every 3 months unless the pot has not reached 1k in which case it rolls over.
What can the DAO vote on? Anyone who holds over 100 tokens can propose a vote, one vote that will always be tabled is the distribution of the funds from the BAE DAO. Although this vote may sometimes need to be postponed due to gas fees. The BAE DAO can only be to vote what to do with the money; the direction of the BAE is not up to the DAO holders. Though from time to time the BAE team may ask the token holders to vote on company decisions.
BAEPAY is a different token to BAE BAEPAY can be earned by buyers and artists on the platform and is sometimes given away in small amounts as promotion. If The BAE token is the senate, the BAEPAY token is congress. Here is how it will work; dedicated buyers and early adopters will be rewarded with BAEPAY some of these may be the same artists who hold BAE. BAEPAY gives the power to overturn the BAE token holder’s decision. To do this at least 50k BAEPAY tokens must be counted as wanted to overturn the decision. BAEPAY owners can also propose a new vote to be voted on by the BAE holders but for this at least 100k tokens must be in support.
Finally, the BAEPAY tokens can be redeemed for discount codes for the BAE at different levels of 0.5% for each 1000 redeemed (these can only be used on the BAE WordPress)
Key points on BAEPAY:
- BAEPAY is a transferable erc-20 token and could in theory gain a value.
- It is distributed at a rate of 1 for every 1 USD spent on the exchange.
- It will also be given away in very small amounts for promotional activity by the BAE.
- It is distributed at regular intervals to be determined.
- 50k collective BAEPAY votes are required to overturn a decision by BAE token holders.
- 100k collective BAEPAY tokens is required to propose a new vote to the BAE token holders.
- No double jeopardy votes the BAEPAY holder cannot overturn a decision twice on the same vote and the BAE token holders cannot create a proposal that has already been voted down by the BAEPAY holders.
- The distribution of funds between the BAE token holders cannot be overturned by the BAEPAY token holders.
A key factor missing in cryptoart is the ability to transfer with ease a large file along with the artwork. The bae contract has a main url field which can take any string input and is locked so that only the owner of a token can access it. These features will be at first only accessible via the WordPress page as it currently is.
There is also a WordPress plugin built for this use case that anyone can download on request, which will produce this form on your site. We strongly believe that decentralised hosting is the future of the digital art space. What we mean by this is self-hosting and updating of the files. The IPFS could fail, Arweave can choose to ignore pins; both of these solutions are not fit for long term purpose as an archive. While admittedly the ipfs works great for Tokenuris and small images it is not useful for real storage. The best solution is for the buyer to hold the digital image on their own PC or cloud storage and update the hidden link accordingly.
The token URI or a bae token cannot be changed; this makes the visible component of the token consistent to prevent fake tokens.
The bae grading system was at one time an important factor in the bae build. However, it now seems that this kind of system is not wanted or needed by the community yet. For our 2020 build it will be disregarded in exchange for simple file metrics.
In this Final concept paper, we have explored the BAE exchanges final form. Many features of the BAE have not been revealed here but in time they will also be released, you will know them when you see them. The bae has held on in this market with a mix of the support of incredible artists, collectors and sheer force of will.
After two years it is finally nearing time, enough talk time for action.
oh and here is some BAEPAY for making to the end https://app.tryroll.com/claim/BAEPAY-dmXraAinrdj4