TL;DR
1. First purchase a canvas during our sale period or on a marketplace
2. Add your own unique contribution to a piece of artwork
3. Sell your NFT canvas onto the next person
4. Earn a royalty fee every time the artwork changes owners
How does it work
There are 2048 dot canvases for sale. Each canvas has a randomly placed red dot.
Purchase a dot canvas, make your mark, and hold or sell it to the next contributor. Initial starting prices for dot canvases will be 0.5 ETH. Any purchaser has the option to make a contribution to an initial dot canvas or an already existing dot canvas with layers of marks from previous owners.
After purchase, download the .psd file & feel free make artistic changes to the artwork file. When finished, upload a .psd file and a .png file to site. Host it in the gallery and welcome viewers and commentary. You have the option to hold it or offer it up immediately for sale. When the artwork sells, you will receive 70% of the sales price. Every past contributor splits a 30% royalty from the sale. Each purchased piece of artwork is a living creation that acknowledges the collaboration and effort that it took to arrive before you.
Sale Details
You can buy a dot canvas for 0.5 ETH. But as more dot canvases are purchased, the price for a new dot canvas will increase. This is designed to encourage more community collaboration among circulating dot canvases.
A total of 2048 dot canvases will be available for sale on a first come first serve basis. The following release schedule will be used:
600
800
800
800
300
90
10
0.3 ETH
0.5 ETH
0.9 ETH
1.2 ETH
1.8 ETH
2.6 ETH
5.1 ETH
Royalty Fee
Each sale on a piece of artwork is treated as a sale round. A contribution to a piece of artwork can be seen as adding value from the contribution itself or literally the one who owned it before. Value is added both by the history of those who held it before you and the contributions made to it. As an artist, there are definitely financial incentives to add constructive changes, but once it is yours you can do whatever you wish. Constructive changes to the piece will theoretically lead to a higher sales price. Depending on the future value of the artwork, future royalties may be more lucrative than the profit earned on just selling the piece of artwork.
The following is the formula we use to determine the royalty fee given to past contributors after each progressive sale:
The first thing you will notice is that all past contributors will split a 30% royalty, while the seller receives 70% of the sales price. The second thing you will notice is that the most recent contributor will receive 2x the royalty fee amount as the previous contributor.
For example, if there are 3 earlier contributors the royalty fee schedule will be:
| Contributor | Percentage of the Royalty Distribution Fee | Percentage of Sale Price |
|---|---|---|
| 4th Contributor (Current Seller) | - | 70% |
| 3rd Contributor | 53.33% | 16% |
| 2nd Contributor | 26.67% | 8% |
| 1st Contributor | 33.33% | 4% |
| The Collaborative Art Project | 6.67% | 2% |
In the following fictitious example, we showcase the potential revenues you could earn from future royalties from buying a blank canvas for 0.3 ETH and selling it at 1 ETH.
| Sale Round | Sales Price | Percentage of Sale | Profit / Loss in ETH |
|---|---|---|---|
| #1 Bought Canvas | 0.3 ETH | - | -0.3 ETH |
| #2 Sold Canvas | 1.5 ETH | 70% | 1.05 ETH |
| #3 Subsequent Sale (a) | 2.6 ETH | 20% | 0.52 ETH |
| #4 Subsequent Sale (b) | 4.0 ETH | 8.6% | 0.34 ETH |
| #5 Subsequent Sale (c) | 7.5 ETH | 4.0% | 0.30 ETH |
| Profit | 1.91 ETH |
Guidelines for Participants
Once you purchase a dot canvas, you have free reign. You can make constructive additions to the piece that builds upon the work of those before you. However, you can also explore literally any other creative outlet you desire. What’s important to understand is that every contribution, every sale, and every previous owner is recorded. Each step contributes or detracts from its value. The history of additive or subtractive changes, the history of past holders either famous or mundane, the meaning and intention behind each contribution, the absence of collaboration, the presence of active collaboration, the drama from hostile buyouts… this is what makes generative art fascinating and valuable. The data provenance, the indelible history of a blockchain’s stamp, and the myriad futures of what you imagine can create something special and unseen in this new medium we are creating together.
For each blank canvas we have included a 1000px by 1000px canvas in both .png and .psd format. We have structured the canvas this way, to make it easier to collaborate on the work across multiple artists.