A new Solana-based NFT protocol, All.Art is contributing towards NFT licensing rights and introducing novel NFT liquidity pools.
However, NFTs are still bound by the technical limitations of the blockchain platforms that support them. And if they’re to have real staying power, NFTs need legal clarity around licensing and offer owner benefits beyond speculative trading.
What is the All.Art Protocol?
All.Art will run on Solana, differentiating it from protocols based on Ethereum and other leading chains. All.Art can offer its users fast and efficient L1 transactions. This means that minting costs are more affordable, and there will be no environmental concerns.
Who Is Behind All.Art?
How Does the All.Art Protocol Work?
Here’s how the system works: Each NFT created on All.Art is represented by its own subset of tokens called license ownership rights tokens or LORTs. LORTs are not fractions of the NFT. Instead, they give holders the ability to own licenses for that NFT, and here’s where All.Art’s unique licensing scheme comes in.
Under NFT-Pro, there are multiple types of license rights a user could choose to purchase. Each of these contains different information with different types of associated legal rights. To keep things simple, NFT-PRO groups the licenses into a three-tier system.
Tier 1 — the core data layer consists of the metadata that uniquely identifies an NFT
Tier 2 — the license rights data layer has terms and conditions for each license
Tier 3 — the transaction layer records cAMM pool interactions and other sales mechanics
If a user wants to represent an item on the blockchain, all they need is the first tier, i.e., the metadata. However, if they wish to sell it, tier 2 and a contract of sale or license transfer are required. If they want to sell it on-chain, level three is required. In effect, this new standard clearly defines license rights for every NFT and eliminates the scenario where an investor buys a piece of art without knowing what they’re actually purchasing.
Capped Automated Market Maker (cAMM) Pools
When an All.Art NFT is created, it comes with 150 LORTs, 100 of which are put into a pool while the remaining 50 go to the creator's wallet. To buy that NFT, a collector needs to purchase LORTs and lock them into the license to meet the price set by the artist. Once this is done, the collector is granted a license token that proves their ownership. They can then either hold it, return for it the original amount of LORTs, or sell to another user. Meanwhile, the artist gets a share of the sale by cashing their original 50 LORTs for the funds deposited by the collector.
This all takes place in programmatically controlled Capped Automated Market Maker (cAMM) pools. These pools are designed to boost liquidity, and each one has a mixture of LORTs and the protocol’s native AART tokens. Each pool also limits how many LORTs it can hold, which is essential because it ensures that an artist gets paid for their work.
The AART token is the fuel for the All.Art ecosystem — connecting cAMM pools and acting as a link to outside capital, both stablecoins and fiat currencies. For any investor to purchase an NFT on the All.Art platform, they need to buy AART tokens from the open market.
All.Art Future Outlook
With the NFT booms, new projects and protocols are launching every day. However, when it comes to NFT platforms, few offer much in terms of real innovation. All.Art, on the other hand, has an ambitious roadmap laid out with a mainnet launch, community rewards, and a public token sale scheduled in the coming months.
Should All.Art succeed, they will need to onboard a critical mass of creators and investors, and if they do that, they’re likely to become a mainstay in the Solana ecosystem. To this end, the SolSea marketplace could be the key with its potential to attract a wide audience of NFT enthusiasts interested in its new licensing standards, low transaction costs, and high speeds.