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"Patch of Grass"
For this work, Van Gogh reuses a canvas that he’d already painted some two and a half years earlier in Nuenen: x-ray photos reveal the head of a woman with a cap under this art.
Hover your cursor over the painting to expose the veiled Underdrawing.
A Path Forward For Museums
That Generates Income And
Establishes An Annunity
SD Gallery intends to secure exclusive copyright claims to an image of a particular artwork currently housed within the Guggenheim Museum. Subsequent to the acquisition of said license, SD Gallery will proceed, in accordance with the Guggenheim Museum's consent, to implement one of the following income-generating strategies:
SD Gallery will tokenize a museum's proprietary underdrawing and couple it with a smart contract. Subsequently, SD Gallery will facilitate the auction of this NFT on the museum's behalf. The smart contract will be designed to afford the museum a royalty each time that NFT changes hands through a secondary market.
The museum will receive the hammer price and the income stream generated from the underlying annuity addressed in the smart contract, less fees.
Since the underdrawing can never be separated from the masterwork, the museum is the custodian of that drawing in perpetuity. The rights and privileges of that custodianship will be articulated within the smart contract, with due consideration for the museum.
The high bidder will receive a framed digital image of the original masterwork and an embedded digitally formatted image of the underdrawing. Technological innovation will allow the mastereork and its underdrawing to be stacked one over the other, so the viewer can toggle between the two images.
SD Gallery will create a tax shelter benefiting the highest bidder, while enriching the museum.
To achieve this objective, SD Gallery will tokenize the underdrawing on the museum's behalf and auction the resulting NFT. The museum will receive the hammer price, less applicable fees.
The high bidder will then gift that NFT to SD Gallery, a 501(c)(3) corporation, and realize his charitable contribution as a tax deduction. In turn, SD Gallery will lend that NFT (underdrawing) back to the museum in perpetuity, effectively creating an arms-length relationship between the high bidder and the museum.
SD Gallery will establish an LLC and then proceed to fractionalize and tokenize the underdrawing, registering these fractional shares with the SEC to make them qualified investments. This will enable the museum to welcome both retail and accredited investors.
The museum will retain majority ownership at 51%, while the remaining 49% will be made available for sale. To enhance liquidity, the fractional shares will have the opportunity to be traded on a secondary market
In addition to the proceeds from the sale, less fees, the museum will receive a predetermined royalty with each transfer of shares, as specified in the smart contract. SD Gallery, in its capacity as custodian for the LLC, will levy a management fee of 1.5% annually.
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