The world in which we live is driven by creativity and innovation. Individuals and others do some innovations by entities. It is effortless for entities to benefit from their innovation. However, many individual creators or artists do not benefit as much. Foundation exists to help creators to benefit fully from their creativity.
What is Foundation?
Foundation is a platform that allows creators to earn from their creativity. It is a marketplace for creative work, enabling the artist to be the sole owner and holder of a piece of art until it is sold. In simple terms, it is a platform for people to buy and sell works of art.
However, Foundation diverts from the traditional marketplace by allowing the work of art to be purchased using fiat currency and cryptocurrency. The product tokens that are used in buying and selling artwork conform to the ERC20 standard. This is because the operations on the platform are based on the ethereum network.
However, it is essential to note that Foundation has no token of its own. It makes use of existing ethereum tokens. By making the marketplace crypto-based, creators can get different revenue streams. For instance, a creator receives a 3% fee if his token has been purchased and 15% each time tokens are traded.
What problem does it solve?
I know that many creators are celebrating the existence of Foundation because it has solved many problems they have been facing.
Usually, pieces of art are sold through some intermediaries who have a direct link with the market. As a result, the middlemen receive payments for the marketing service. Notably, at one time or the other, the product is in the hands of a middleman. Second, the artwork’s value is determined using inadequate and outdated systems, which disadvantages the creator.
The sad thing is that most times, creators are asked to pay money upfront for the marketing of their products. And the worst thing is that some artists who cannot afford the marketing fees will give up and stop their creative work. Also, sometimes the creator is given a commission for his/her work. These problems lead to the deprivation of artists.
Remember, the work of art, in this case, encompasses many things. It includes various artwork where there are tangible and non-tangible products. Examples of tangible art products are portraits and uniquely designed clothing items such as T-shirts. Non-tangible products include music and other videos.
Two phases are involved in the buying and selling of the products. There is a market phase and a redemption phase.
During the market phase, an artist registers his/her piece of art at the platform. At that phase, the artist does not provide the product or work of art. He/she gives a draft of the creative framework of the product. This is a concept similar to crowdfunding. From that point on, the product is represented by a token that people can buy and sell. This is because the ticket is tradable. The price of this token fluctuates according to its demand and supply.
The starting point in the marketing phase is when the creator sets the product’s minimum and maximum prices. The price range helps to ensure that the product is affordable and can be purchased in a reasonable quantity. One point to note is that the platform does not want an upfront payment for artwork. The buying and selling processes take place with no cost, be it in the name of a fee. Instead, the fee that is generated from trading is distributed to the creators.
The redemption phase begins when the artist has the product at hand. He/she will be able to ship the product to the buyer. As a result, the tokens’ collectors redeem them, meaning that they exchange the tokens for the actual product or work of art. It is at this stage that the artist gets the payment from the buyer of the artwork.
How do creators benefit?
This has been discussed briefly on the onset. In short, however, creators benefit from the fees that are distributed to them directly. Above all, creators sell their work without making any payment to Foundation.
Creators are always in charge of their products until they are finally purchased. The absence of intermediaries means that creators get a fair value of their products since they are involved in setting prices.
As you have followed this discussion closely, you have noticed that Foundation has brought a system that makes creators of works of art in charge of the buying and selling their products. Artists benefit in a very fair and transparent way from their creativity.