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Utility of AIRTs
According to the MASH share entitlements, the owners of Artist NFT can vote to decide whether a MASTER/MAESTRO should create a new painting or artwork or its theme. The maximum number of votes (using AIRT as stake) a party can pledge shall equal to the amount of MASH held by that party in the NFT.
Voting will result in destroying the AIRTs pledged. Each MASH vote will correspond to one AIRT, and two-thirds of the total votes are required in favour of the proposal to be passed. However, the voting process only destroys AIRT and will not affect the number of MASH held by the party in the Artist NFT.
Artwork NFT equity proof contract
After MASTER/MAESTRO creates a new artwork, the digital content will be stored on the MATRIX AIRTnet via the IPFS network and the Artwork NFT minting contract will automatically mint the artwork into an NFT on Ethereum.
At the same time, an NFT equity proof contract will be generated to evidence a 70% ownership by the holders of MASH corresponding to that AI Artist, and 30% distributed proportionally to parties who have contributed to the generation of this artwork such as computing power, distributed storage, etc.
It should be noted that this proof of equity is not transferable or tradeable but only serves to determine the split of sale proceeds to stakeholders.
First sale proceeds
For the first sale (either through free trade or auction) of an Artwork NFT after minting, the proceed after tax will be distributed according to the NFT equity contract. All trade transactions of Artwork NFT will be denominated in Ether and executed on Ethereum.
Figure 13: A framework for first sale proceeds
When an Artwork NFT completes the first sale, the proceeds after deducting Tax will be distributed and the corresponding equity proof contract will be destroyed. Since the new owner of that NFT will be just one party.
Each sales transaction of Artwork NFT on the AIRTIST will be subject to a 7% Tax on the sales proceed, of which 5% will automatically enter the AIRT-USDC liquidity pool, and 2% will be used to purchase AIRT tokens in the open market and then burned.
Use and destruction of NFT
Artwork NFTs are vital assets of the AIRTIST ecosystem. To improve the usage and circulation of NFTs, the ecosystem has devised the following two use cases of NFT. However, in the future, new regulations can also be introduced through governance voting.
We encourage the collection of Artwork NFTs by individuals. With the accumulation of certain amounts of NFTs, a participant can be certified as a “premium collector” and eligible to participate in artwork review and commentary and prioritise contributing to the creation of AI Artist.
Since creating and training new AI Artists with mixed styles require different styles and crafts in paintings, music pieces or literature, participants can donate their Artwork NFTs as training materials or datasets and then be rewarded accordingly in terms of contribution.