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1/24/22
Hello. I am a NFT/digital artist. I believe I may have come up with an idea that would dramatically increase the purpose and value of NFT artwork:
By making my gallery a non-profit, my clients become donors upon purchasing an art piece, in this case an NFT. The transaction is made with cryptocurrency, which is a form of cash, making the purchase from the gallery 100% deductible. As you may know, the creator of an NFT collection retains a royalty from all future sales of that NFT (10% is standard). Upon the resale of the NFT, in this case, that ten percent royalty would be coming back to gallery, a charitable organization. So the buyer of my original NFT artwork now gets to write-off the original purchase price from the gallery and 10% of the resale price from the automatic royalty payment, as well as 90% percent of the resale price. However, the new buyer, to my knowledge, is only able to deduct 10% of his purchase price as that is all that is going back to the charity (gallery). This also effectively creates a "Forever Donation" to the charitable organization or trust involved.
I was hoping to find a way for the resale buyer, effectively every buyer, to be eligible for the 100% deduction. I thought possibly by adding a contract upon purchase that obligates every seller of the NFT to donate the proceeds back to the gallery (charity). As long as this contract was adhered to all sales, as well as purchases, of the NFT would be one hundred percent deductible. If I understand that correctly that means as a buyer/donor you get a 100% charitable deduction from the original purchase from the gallery (charity), then are able to re-assess and reset price for new fair market value, and upon resale, under the aforementioned contract of 100% re-donation, get another 100+% charitable deduction, which includes any profit. Not to mention you get to write the next buyer's deduction. Another approach may be to assign a 100% royalty to the collection, as the creator and charitable foundation are one in the same; the nonprofit gallery.
The NFT's I am referring to are a series of 129 avatars. The collection is akin to a set of trading cards or collectables, except as these are passed around and traded they increase in value. My hope is to create a new charitable investment instrument that could increase the value of all NFT artwork and give our community of artists more power to compliment our creations with purpose. More ways for our art to really DO something.
(https://opensea.io/collection/bunee-bloxxx)
Thank you for your time and energy. Be well.
Sincerely,
blockchain.artwork [email protected] https://linktr.ee/blockchain.artwork
The text was updated successfully, but these errors were encountered:
1/24/22
Hello. I am a NFT/digital artist. I believe I may have come up with an idea that would dramatically increase the purpose and value of NFT artwork:
By making my gallery a non-profit, my clients become donors upon purchasing an art piece, in this case an NFT. The transaction is made with cryptocurrency, which is a form of cash, making the purchase from the gallery 100% deductible. As you may know, the creator of an NFT collection retains a royalty from all future sales of that NFT (10% is standard). Upon the resale of the NFT, in this case, that ten percent royalty would be coming back to gallery, a charitable organization. So the buyer of my original NFT artwork now gets to write-off the original purchase price from the gallery and 10% of the resale price from the automatic royalty payment, as well as 90% percent of the resale price. However, the new buyer, to my knowledge, is only able to deduct 10% of his purchase price as that is all that is going back to the charity (gallery). This also effectively creates a "Forever Donation" to the charitable organization or trust involved.
I was hoping to find a way for the resale buyer, effectively every buyer, to be eligible for the 100% deduction. I thought possibly by adding a contract upon purchase that obligates every seller of the NFT to donate the proceeds back to the gallery (charity). As long as this contract was adhered to all sales, as well as purchases, of the NFT would be one hundred percent deductible. If I understand that correctly that means as a buyer/donor you get a 100% charitable deduction from the original purchase from the gallery (charity), then are able to re-assess and reset price for new fair market value, and upon resale, under the aforementioned contract of 100% re-donation, get another 100+% charitable deduction, which includes any profit. Not to mention you get to write the next buyer's deduction. Another approach may be to assign a 100% royalty to the collection, as the creator and charitable foundation are one in the same; the nonprofit gallery.
The NFT's I am referring to are a series of 129 avatars. The collection is akin to a set of trading cards or collectables, except as these are passed around and traded they increase in value. My hope is to create a new charitable investment instrument that could increase the value of all NFT artwork and give our community of artists more power to compliment our creations with purpose. More ways for our art to really DO something.
(https://opensea.io/collection/bunee-bloxxx)
Thank you for your time and energy. Be well.
Sincerely,
blockchain.artwork
[email protected]
https://linktr.ee/blockchain.artwork
The text was updated successfully, but these errors were encountered: