Terms and Conditions
Analysis of market needs and requirements
Primary market: Museums and Foundations
The market is primarily made up of Museums and Foundations, or more generally institutions that deal with the preservation and management of artistic or cultural heritage. Considering the strong scalability of AerariumChain, the global market -with approximately 100,000 museums - is considered as a potential market; for the first year the focus is predicted to be on the Italian market, considered as an effective test for the subsequent opening on the foreign market.
The primary market can then be extended to the management of cultural heritage, where CARE and FUND services are easy to offer.
If we consider Europe alone, the data show that every year on average 0.4% of the GDP of the adhering countries (€ 19,644 billion in 2019) is dedicated to the preservation of art and culture: we are talking about € 7.85 billion. The preservation of any assets starts from condition reporting activities which fall within the CARE of AEC.
A first estimate of the data available in Italy shows an addressable market of approximately € 350 million, without taking into account the investments in deliberation connected to the Recovery fund in the next 2 years.
Primary market: how it works?
NFTMicro emission value
It is the value expressed in Euro (€), US dollar (USD) or British pound (£) with which potential buyers can buy NFTMicroTM at the start of the sale. The price will subsequently change in relation to the supply and demand of NFTMicroTM on both the primary and secondary markets. The AEC App will ask you to confirm the Emission Value of each individual NFT, which is calculated with the following formula: emission value= artwork's value/ NTFMicro's total number.
To allow the sale of NFTMicroTM on the NFT partner marketplace (s) of the Company and / or on the AEC App, the Issue Value can be converted by FIAT to the value of the Crypto-Currency used by the exchange system at the time of the sale transaction.
Transfer to the Customer's digital wallet and Quota for the AEC Reserve
Once issued, the NFTMicro are transferred to the Client's Wallet except for the part constituting the AEC Reserve Quota, which is automatically transferred to the AEC Reserve Wallet. The value of the Quota for the AEC Reserve is equal to 5% of the Total Number of NFTMicroTM issued.
Quantity and timing
The Quantities Available for sale over time are determined according to the following percentages relating to the Total Number of NFTMicroTM issued for the single Work:
| Period | Parameter name | Quantity Available as a percentage of the Total Number of NFTMicro |
|---|---|---|
During the Pre-Sale | PV1 | 2% |
From the date of sale on the primary market | EM1 | 5% |
Starting from 180 days from the date of sale on the primary market | EM180 | 10% |
Starting from 360 days from the date of sale on the primary market | EM360 | 15% |
Starting from 540 days from the date of sale on the primary market | EM540 | 20%, equal to the Maximum Salable Quantity |
Sale of NFTMicroTM on the Primary Market
At the beginning there will be only the primary market and the Museum itself will sell its NFTs. The price will remain stable and it will not be possible to sell your newly purchased NFT. In practice, this first phase of sale works exactly like a pre-sale. NFTMicro can be purchased both directly from the AerariumChain marketplace, and physically in museums. In fact, you will be given the opportunity to buy an NFT to make a donation to the museum just like today buying a postcard in the shop at the end of the visit. The advantage of purchasing the NFT will be to be able to take advantage of a 3D image of the work at a resolution that is not currently available on the market.
The primary market will cease to exist when an adequate level of confidence is reached to allow the initial financing of the liquidity pool. The latter will be composed of USDC (proceeds from the sale of the primary market) and the NFTMicro of that work.
Secondary Market: Fine Art
According to The Art Market 2020 report by Art Basel & UBS, the total amount of ancillary services related to monitoring of the condition of works of art is 4.5 billion dollars (Preservation & Restoration + Insurance and safety + Packaging and shipping). This is an important area in which AEC can intervene offering greater efficiency and guarantees throughout the entire supply chain.
Secondary market: how it works?
The secondary market will only be accessible once primary market sales have reached a volume that guarantees the safety and proper functioning of the liquidity pool. The sale through the liquidity pool of NFT Micro will determine the price as explained in the Problem to solve section.
Since the liquidity pool is based on the CPMM model, the price of the single NFT will vary both when a user sells one or more, and when he buys one or more. Clearly, the greater the quantity to buy, the greater the incentive to be a liquidity provider, due to the possibility of high slippage. However, in order to keep the price constant, and to avoid witnessing frenetic movements or incredible purely speculative occasions, the Museum will clearly be able to sell on the primary market the amount of NFT that has remained available to it from the sale of the primary market. In this way, a constant NFT price is allowed, at least until "NFT stocks are exhausted". This mechanism was conceived, studied and created with the intention of discouraging the purchase of those who have the sole purpose of speculating. In fact, the main purpose of AerariumChain remains to preserve art.
So will the price of an NFTMicro always remain constant? Clearly not. In addition to the fluctuations produced by the liquidity pool, in the future we are extremely convinced that once the circulating supply is exactly equal to the total supply the price will increase because there will be less and less within the liquidity pool.
Possible developments (Here to stay)
The AEC team is already working, in collaboration with other platforms, on possible mechanisms to rent the NFTMicro and generate further value. This clearly guarantees a healthier and less speculative income compared to the uncontrolled growth of the price of the NFT which, as we well know: it is quick to rise in price and it is also quick to fall. AEC deeply believes that solid and healthy development is better than mechanisms that allow more money initially but then fail.
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