👑 Portion | The 21st Century Auction House 👑
→ Portion is seamless, decentralized auction house and marketplace for creators and collectors to discover, collect, and sell NFT art, music, & collectibles. Through Ethereum smart contracts and distributed technology, art and collectibles enters a new market.
→ Portion Curated Drops source works from iconoclastic artists from across the media landscape, while our Community Curated Market empowers emerging artists and formats. Artists earn up to 100% of the proceeds from their sales on Portion and 11% royalties on secondary sales.
→ Launched in 2018
Everything the Portion team, partners, and community does is in service of breaking down barriers to art and wealth while growing the PRT economy.
Built on the Ethereum Blockchain, Portion’s value proposition is simple: provide a transparent and trusted means to track provenance and exchange authentic, high-value goods in exchange for cryptocurrency.
Portion’s Three Pillars
1. THE NFT MARKETPLACE FOR ARTISTS
Portion’s marketplace empowers artists to participate in a decentralized platform for the sale of NFT art and collectibles.
Sellers on the platform feature artwork and collectibles catered to art aficionados and cryptocollectors. Portion’s technology integrates resale royalties (in the form of $PRT token incentives), patronage, and more into the buying and selling experience on the marketplace. Portion’s market democratizes transparency and access to all who seek art and collectibles.
2. ENTERPRISE PARTNERSHIPS
Portion licenses its proprietary blockchain infrastructure to businesses in the art, collectibles, and luxury industries.
Blockchain Certificates of Authenticity bundle images and smart-tags with information originating from artists, galleries, manufacturers, and authorized retailers. Portion’s Web 3.0 technology secures provenance, guarantees authenticity, and improves commerce and collecting for creators and collectors alike.
3. FINANCIAL SERVICES
Subject to applicable regulatory compliance, Portion may offer loans and financing in crypto or fiat via a set of secondary smart contracts. It is envisaged that Portion’s users may collateralize authentic art and collectibles to receive secured loans. Portion may also offer loans to sellers as an advance on a sale, to individuals who have authenticated goods, or to those who purchased goods on Portion but never took physical possession of the object.
Problems And Portion’s Solutions
The art and collectibles world and the burgeoning world of crypto are both elusive and esoteric lands without clear paths of navigation. The art and collectibles market is the largest unregulated industry in the world (after drugs). With this unregulated air of mystery, inherent barriers prevent artists and collectors from entering this art market entirely. A lack of transparency has made this industry ripe for bad actors and fraudulent activity. Portion’s blockchain technology creates immutable records of authenticity and provenance mitigating risk with fraud and counterfeits, in a legally compliant manner.Portion’s marketplace democratizes these seemingly enigmatic worlds by using technology to eliminate the gatekeepers. The commission taken out of an artist’s proceeds by a traditional dealer or e-commerce site can run upwards of 30-50% of a sale. Portion aims to give creators (artists, brands, retailers) direct access to collectors without bloated fees and intermediaries. Portion’s marketplace enables these creators to sell works directly to collectors with minimal fees. *Portion Artists keep up to 100% of proceeds from their sales and earn 11% royalties on secondary sales.
The Traditional Auction House
Auctions have been around since ancient times. And like other forms of commerce, they have evolved with societies and economies in conjunction to changing technological landscapes—from advancements in watches and home-building, to transformations in the world of art-making. The auction house we’re familiar with—the large-scale luxury auction house— came into prominence in 1744 with incumbent firms such as Sotheby’s and Christie’s leading the charge. By hosting live auctions available exclusively to the wealthy, the air of elitism around these institutions continues to be at the forefront of our cultural visage of the auction house.
Traditional Art and Collectibles
Like the auction house itself and the wealthy benefactors who frequent them, the objects of elitist desire are scarce, high-value goods: cars ($592B), personal goods ($255B), wines and spirits ($80B), fine art ($27B), furniture ($45B), and yachts ($26B), for a total value of $1T. “Total sales in the online art and antiques market worldwide roughly doubled in 2020 over the previous year, as the coronavirus (COVID-19) pandemic forced auction houses and dealers to find alternatives to in-person events. Overall, global online art and antiques sales amounted to 12.4 billion U.S. dollars in 2020, rising from six billion U.S. dollars in 2019.” (Source: Statistica)
Limitations of the Industry
Over time, as technology progressed, online auctions democratized the traditional auction house, increasing accessibility to consumers. However, the industry remains plagued with fundamental issues due to technological limitations. Many players lord over this intimate, exclusive economy. Dealers, galleries, auction houses, art brokers, and private sellers serve as intermediaries centralizing the traditional art and collectibles market. In the position of gatekeeper, these players wield power over price discovery and transactions.
The issues with traditional auction houses are categorized as follows: transparency, payment, bidding, and goods.
Auction House Problem #1: TRANSPARENCY
Portion’s use of Web 3.0 trust infrastructure yields a decentralized network, guaranteeing transparency to users. Furthermore, Portion’s Blockchain Certificate tracks the provenance of goods to ensure that items are authentic and properly represented. Non-fungible tokens (NFTs) facilitates every transaction in Portion’s auction house and marketplace, allowing transparency of ownership and final prices paid for all goods. This data not only creates a more secure and transparent auction house, but also democratizes beneficial data for our network of authenticators, artists, creators, and users.
Auction House Problem #2: PAYMENT
Bidders at in-person auction houses are generally put through exhaustive processes to ensure an individual has sufficient funds to bid on high-value goods. Traditional auction houses will occasionally mandate earnest money during an auction. Earnest money is a deposit to demonstrate the bidder’s commitment, which binds them to a contract. When auctions take place online, payments are generally dependent on credit cards or third party payment processors. These systems have inherent flaws and can be easily manipulated. Additionally, auction houses and online systems have been slow to adopt cryptocurrency, the emerging form of digital transactions. These issues have created problems validating proof of funds, streamlining payments securely, and enabling refunds.
Auction House Problem #3: BIDDING
Auction houses are inherently vulnerable to collusion and shill bidding. The ascending auction format—the digital auction house—is still vulnerable to these practices. Shill bidding occurs when individuals associated with a seller artificially increase the price or desirability of a good being auctioned, or, when auctioneers collude with bidders to artificially raise the price of a good. These practices create an unfair environment in which the very principle of an auction house is undermined. The goal of an auction house is to create an equitable form of exchange where goods are sold to the highest bidder, creating a balance between supply and demand.
Auction House Problem #4: GOODS
Auction fraud has remained a top 20 complaint on the Federal Trade Commission’s consumer list, with over 70,000 complaints made each year. Current processes rely on trusting the auction house or a seller’s online review and history. While online auction houses have worked to rectify this concern, fraudulent and misrepresented goods remain a primary issue. Furthermore, auction houses that take a centralized approach by preapproving every good, regardless of the value, hinder their ability to scale. The operational cost of inspecting lower valued goods impedes an auction house’s ability to maintain ideal margins.
The Dwindling of the Traditions
Since 1744, a lot has changed, especially in this new millennium where technology constantly impedes on our reality. The limitations and difficulties facing the players in the art market as well as artists themselves can be solved by evolving with the technological times we find ourselves in. Wealth managers, art professionals, and collectors alike feel modernization can help with business practices. Overall, this would make the art market meet contemporary expected standards of transparency, trust, and healthy development. Further, if this new vision for a modern market could be met with security, it would engender a self-regulated approach for art and collectibles professionals and collectors—an autonomy preferred by all parties. Antithesis to this vision is the current lack of market transparency. From the old, opaque stance of the traditional auction house, the art and collectibles marketplace has inherited a serious challenge in developing clear relationships to artists, buyers, and the objects themselves. By safely decentralizing these old adages, a modern vision will rely heavily on transparency. To disrupt this opacity, pricing needs to be transparent instead of confidential, and the visibility of secondary market transactions cannot stay hidden.
An Industry Ripe For Innovation
Art-technology startups of today’s moment have focused their energies on building new digital business models for existing traditional art houses. To progress the sector entirely, Portion plans to replace and advance traditional art businesses by using technological innovations to increase trust and transparency, support data-driven valuation methods, and build social capital. The end result of these changes is a huge transformation of the backbone of the art market ecosystem.
According to Hiscox Online Art Trade Report 2019, online art market sales will continue to grow, but at a slower pace. They have reached an estimated $4.64 billion in 2018, up 9.8% from 2017. More millennials are purchasing art online with 79% saying they bought more than one, up from 64% in 2018, and approximately 23% have never bought art from a physical space previously. This indicates that the online art market plays an important role in introducing the newer generations to art collecting. And as art sales rise, art businesses are moving online. During 2020, Sotheby’s, Christie’s and Phillips grew their online businesses, totaling $444 million via online auction sales (a record breaking increase of 388% from 2019). This increasing competition forces online art platforms to embrace new strategies to expand their business and diversify their income streams. We are starting to see the emergence of new art market data and analytics addressing both risk and return in the art market. These developments could contribute to improving transparency, valuation accuracy, and risk management of art-related wealth.
“2020 was undoubtedly a turning point for the online art market. Auction houses and art fairs boosted their digital presence, relying on formats such as Online Viewing Rooms (OVRs) - letting art collectors and enthusiasts experience 3D digital reproductions of artworks – as well as streaming auctions and events. During ONE, a global online auction organized by Christie’s, a Roy Lichtenstein’s painting was sold for more than 46 million U.S. dollars, making it the most expensive lot sold by Christie’s in 2020. 2021 also looks to be an important year for online art sales, with non-fungible tokens (NFTs) and crypto art hitting the news when a digital collage by American artist Beeple was sold in an online-only auction by Christie’s for 69.3 million U.S. dollars.” (Source: Statistica)
Technology Transforms Art And Collectibles
Bitcoin was originally developed to disrupt centralized financial institutions. This disruption is an inspiration and opportunity to impact how the art and collectibles industry will change in this increasingly digital era. The Portion marketplace transforms and disrupts the traditional art and collectibles market with decentralized technology. Ownership, provenance, and other critical details to authenticate physical goods are recorded on the blockchain. Blockchain technology ensures seamless transactions and fraud mitigation on an immutable ledger.
The advent of blockchain has paved the way for new forms of art and collectibles—digital art and collectibles, the world’s first provably scarce digital assets. Through the use of NFTs, artists gain additional means to express themselves, as well as a new format for collectors to store their goods. An entirely new market has emerged where individuals can sell pieces of scarce digital art and collectibles.
DIGITAL ART AND COLLECTIBLES
Of the many benefits and applications of blockchain to the art world, none have the potential to be more disruptive than blockchain’s unique capacity to democratize the art making process, while simultaneously engendering secure online markets which stand to replace the traditional auction house entirely.
Regarding digital art, its very digital nature makes the process of creating available to all who have access to a computer. More prudently, the nature of this scarce form of digital art allows artists to swiftly participate in their curation process. While the traditional model lauds exclusivity with limited galleries, the rarity of auctions, and other industry politics, those engaging in digital art can easily showcase their work in secure, online environments. Emerging artists, especially, can advance their presence to an online audience with far more ease than traditional forums allow or desire.
Furthermore, as digital technologies advance, the power of artificial intelligence and blockchain will only grow stronger and broader. Programmers, designers, and creatives of various fields will be able to use technology artistically. Complex computational algorithms will become the new brushstroke. Portion views this burgeoning form of expression as a natural evolution of the art market, especially when paired with blockchain technology.
Attaching a unique non-fungible token (NFT) with pieces of digital media is not limited to art. The industry has demonstrated that the community places high value on a myriad of assets and forms of media. In an effort to flatten out the ecosystem of various forms of crypto assets, Portion offers an agnostic platform that can accommodate all forms of digital collectibles.
Portion’s accommodating technology and view of the industry enables any creator, regardless of media type, to partake in the growing industry of digital collectibles. The trading industry of digital collectibles and art is only at its beginning. Future expansion may cater to musicians, writers, poets, and filmmakers. Portion is helping facilitate the creation, auction, and exchange of these new forms of content through this new medium
PHYSICAL ART AND COLLECTIBLES
Blockchain technology has important applications regarding physical art and collectibles, too. With Portion, artists and collectors can irrefutably verify the authenticity of each object, store important documents (certificate of authenticity, title, ownership records, etc.), and track an object’s provenance.
More than just replacing the formalities of the traditional auction house, blockchain advances the security of the entire process. While it’s all fun and games in The Thomas Crown Affair, when it comes to beloved objects, art, or money (fiat or crypto), no one wants the pitfalls of the industry to get the best of them. Because of the opaque nature of the traditional auction house, artists and bidders are susceptible to fakes, illegitimate transfers of works (i.e., where seller doesn’t hold the title or has a lien on the title from a bank due to loan taken out against it, etc.), and flaws in financial services among other issues.
Portion connects to living artists and reputable sources to initiate the chain of provenance at the point of creation and initial sale. Facilitated with our Web 3.0 infrastructure, the security of any given work of art or collectible can be guaranteed, including all of the necessary documentations of proof and appraisal.
A New Class of Collectibles
The luxury industry, more specifically art and collectibles, has long been defined by numerous factors including: artist clout, scarcity, provenance, authenticity, condition, technique, and market dynamics. These principles in the art and collectibles space have created a market of extreme wealth and desirability. Historically, items such as fine art and antiques have dominated the art and collectibles space.
Lower-cost consumer goods with relative scarcity act as the segue into the collectibles space for younger individuals. For example, this shift is evidenced by the secondary market for sneakers ($2B) and watches ($18B+). Sneakers and watches aren’t the only asset classes of collectibles that speak to this generation. There is an ever-increasing array of entry points for art and collectibles.
The worth of art goes beyond the object for collectors. Art is a lifestyle product. Time and again, surveys show that buying art is primarily motivated by social value among collectors.
A New Generation of Collectors
The dawn of a new economy is upon us as the purchasing power of millennials and Generation Z have begun to surpass any other generational demographic. About 72 million millennials, currently in their 20s and 30s, live in the United States. This generation has already made significant impacts in the economy and accounts for over $600B in national retail sales every year.
The millennial cohort largely discovers art online, even through social media. And more than half of them would buy art online (compared to the measly 19% of baby boomers). Between all of the statistics on these realities lies an important hurdle: would.
Art e-commerce has been around for a decade without making a real dent in the state of art dealing. For the past ten years, the art market has still very much been dominated by traditional art dealers, face-to-face meetings, and handshake deals. However, as Artsy just noted, “millennials are settling down, finding financial footing, and beginning to collect.”
The younger cohort, Generation Z, has accumulated close to $153B in spending power. While this group of individuals holds significantly less spending power than millennials, they will soon control more than millenials and consumption preferences will continue to evolve. Over 43% surveyed noted trust and authenticity as key factors when engaging in a transaction. With the growing economic prominence of millennials and Generation Z, it is crucial for legacy means of exchange, such as auctions, to evolve to cater to the desires of these generations.
The value of the cryptocurrency market has increased to well over $2.48T, which has given rise to a young class of wealthy individuals. There are limited channels for these individuals to purchase high-value luxury goods and rare collectibles for cryptocurrency. Likewise, luxury good owners who want to sell in exchange for cryptocurrencies have no efficient means of doing so.
Digital assets and cryptocurrencies prove to be a natural asset desired by this generation. Inherently, these provably scarce pieces of digital art and collectibles have appreciable properties that solidify their place as an alternative asset class.
A VIEW TOWARD INVESTMENT
These young collectors view art and collectibles as an investment first. While this discourages the ideals inherent in art—to be moved—it does come from the rippling impact of the economic turmoil that these generations have faced thus far. Accounting for the extrinsic value, it’s important to consider what else will shift when moving from a traditional auction house to a digital space: the emotional experience of art will become digitized too.
Further, millennials and younger generations are more visually literate than any preceding generation. Millennials are voracious consumers of digital, visual content and experience—documenting, sharing, and peeking into a desired lifestyle has become ubiquitous among these adults and younger generations.
Exposure to the market at every level is only magnified through social media. As Artwork Archive reported, “Millennials lead the way with social media and online sales, more artists, galleries, and museums are engaging directly with audiences. Collectors and critics can discover and evaluate more art, more easily, and arts organizations are eager to connect.” Fostering an emotional connection is key to securing sales. Millennials enjoy the patronage aspect of art collecting, under the broader ambition of impact investing, and getting to know the artists from whom they collect is easily done through social media.
The Portion Ecosystem — NFTs, DeFi, and DAOs.
- NFTs — One-of-a-kind digital items that push the boundaries of art and technology.
- DeFi — A shared economy with the PRT Token powering staking, royalties, bidding, and payments.
- DAOs — Aligning incentives with decentralized governance and voting.
Portion taps into the cultural phenomena of ‘drops’ set by the likes of Nike, Supreme, and others by offering limited quantities of highly sought after goods. Portion partners with notable cultural figures and brands to curate select featured drops. These goods are selected from both existing partners of Portion as well as those within the curator’s network. Featured drops will include highly anticipated goods with a measure of gamification and rewards for collectors.
Portion partners with living artists, galleries, brands, and retailers to initiate the chain of provenance at the point of creation and initial sale of a good. Using blockchain technology, the security of any given work of art or collectible can be guaranteed—including all of the necessary documentations of proof. Partners will host their unique storefront allowing collectors to follow, bid, and acquire their goods. Partners are held to the highest standard for authenticity, business practices, and trust.
We're always looking for new partners | Contact: firstname.lastname@example.org
The NFT Marketplace
Portion is uniquely positioned to address the limitations of the traditional auction house by combining a seamless NFT marketplace interface with innovative processes and operations. The Portion Marketplace is a market where users can freely trade digital and physical goods. The bid/ask model will function like a typical stock exchange when completely developed.
→ NFT Assets: Smart contracts verify authenticity, track provenance, and prove ownership.
→ Seamless Interface: Create NFTs, launch your own auction, and catalogue your entire collection all in one place.
→ Funds: Smart contracts ensure payment and provide autonomous settlements
→ Royalties: Earn 11% royalties on secondary sales – in perpetuity
DIGITAL (ART AND COLLECTIBLES)
Portion allows creators to tokenize any media format using a drag-and-drop web portal. Portion obfuscates the blockchain backend and eliminates the need for plug-ins or third-party applications, making Portion uniquely inclusive to traditional artists and cryptoenthusiasts alike.
Using Portion, the seller sets the price they wish to obtain for a particular piece, while collectors offer their hopeful price to the seller. When a seller agrees to a collector’s offer, the transaction is complete. Portion’s marketplace model helps creators receive the best price for their work. And further, this model serves to illuminate the market desire and valuation of artwork to the artist. Portion’s marketplace model also highlights digital assets as a new means of expression with appraisable audiences and values.
PHYSICAL (ART AND COLLECTIBLES)
Physical art, collectibles, and luxury goods on Portion’s marketplace will be directly accessible to consumers. All posted goods are accompanied by a blockchain (NFT) certificate, which documents the initiation of provenance directly from the originating source (artist, brand, etc.). The certificate and documentation serve as a certificate of authenticity, as well as the record of title and ownership.
When an item sells, a digital representation of the good will be held in escrow along with the purchasing funds. When the transaction is complete, funds are transferred in exchange for the physical good, accompanied by the NFT certificate.
SECONDARY SALES: IN-NETWORK (FUTURES)
Just like any stock market, Portion intends to enable futures trading of art and collectibles. Buyers can either have physical goods sent to themselves, Portion’s storage facility, or a preferred storage partner. Buyers can choose to forgo physically obtaining the goods and instead purchase it for economic appreciation, as the blockchain certificate signifies the transfer of ownership.
This model allows buyers to hold the right of possession on a good without worrying about maintaining the item’s condition. Further, this model eliminates the need to re-authenticate the good. Buyers can watch the market and relist the right to ownership of a good at any time. If the subsequent buyer wants physical possession of the good, Portion will simply ship it to them. Transactions can be made in Ether, Porti (to mitigate fees), Gemini Dollar, or even fiat.
SECONDARY SALES: OUT OF-NETWORK
Portion hosts a constantly growing global network of carefully vetted, reputable appraisers and authenticators to assist with consignment auctions. In each region, sellers will have access to authenticate, appraise, and receive a Blockchain Certificate (NFT) for their item(s). All partners undergo an interview, provide references, and demonstrate credibility based on their credentials and associations. Portion continually tracks the accuracy and validity of NFTs distributed by the network of partners to ensure ethical and high-quality practices.
Furthermore, Portion intends to have contracts with each partner of the network mitigating fraudulent goods and liability for all parties. This approach allows Portion to maintain a level of decentralization and scale. Ultimately, this practice will help build trust and convenience for Portion’s user base while reducing overhead for the organization. Portion intends to build direct relationships with living artists. All artists and creators are given the ability to create a NFT at the point of creation of their work and then seamlessly auction or sell their work on Portion.
Portion has created a three-step process to ensure goods are authentic and appropriately represented: 1) Appraisers and authenticators identify and create listings for high-value goods. 2) Following authentication, the partner distributes a NFT via Portion’s administrative dashboard. 3) Upon receiving the NFT, the seller can list their good(s) on Portion, bypassing any centralized, lengthy inspection period.
Portion’s proprietary blockchain technology and easy-to-use application have created the foundation for businesses to ensure and track authenticity of their products, gaining valuable insights into collector trends and the life cycle of their goods.
To ensure customers of authenticity on a particular product, Portion’s software clients (brands) create NFTs for the goods they sell. Clients can either manually create these certificates or leverage Portion’s API infrastructure to integrate the technology into pre-existing systems. Clients also have a dashboard to better understand their market, customers, and goods.
Portion partners with brands, retailers, and insurance firms to give users the option to store critical documents on the blockchain. This helps provide an additional layer of security and convenience for all parties involved.
Portion’s enterprise solution addresses issues of fraud and counterfeits in the arts, collectibles, and luxury industries. This collaborative, participatory environment will help drive strong partnerships between Portion and its users, while also creating supply for secondary sales on the exchange.
Wealth managers, art professionals, and collectors agree that estate planning is the most important service offered by art and wealth managers. Art and estate planning will become increasingly significant in the wealth management industry in this economic climate as massive amounts of wealth transfer from baby boomers to millenials. And yet, nearly half of collectors surveyed have yet to discuss their art related estate with their heirs.
Portion’s blockchain certificates enable estates to create immutable records denoting the rightful heir of a particular piece of art or a collectible. At the time of transition, the estate will have the ability to seamlessly transition the ownership rights to the heir along with documents of provenance, bills of sale, and all other important documentation stored on the blockchain certificate.
Given the rising need for art and wealth management in conjunction with the content of Portion’s marketplace, collection management and wealth reporting systems are on Portion’s horizon. Art collection management systems would integrate with the existing wealth reporting software providers to see how art and collectibles can be included with overall wealth reporting. Simultaneously, this effort would serve as a collection management system to facilitate the estate planning process—a process coveted and respected by art professionals, collectors, and wealth managers.
The collecting and cataloguing process would benefit the intrinsic morals behind art collecting as well. Beyond the transactional elements Portion manages, collectors using Portion’s technology will have an opportunity to access the entirety of their collection in one space. Users can enjoy and selectively share their collection with others through these services. While other wealth management service providers incorporate some of these elements, the Portion marketplace has the unique opportunity to develop a hybrid system in which collection and wealth management reporting can occur in a single system.
The art-secured lending market in the US reached an estimated $18-20 billion in 2017, which represents a 13% growth from 2016. Portion places great focus on relationships with artists, galleries, retailers, and partners. Subject to compliance with all applicable regulatory compliance, Portion intends to work with these parties to provide loans as an alternative to traditional financial institutions. Traditional financial institutions seldom offer solutions for businesses, which require additional capital to purchase additional inventory or compensate for slow cash flow. B2B loans will be offered to firms with sufficient assets, which can be held as collateral in the event of a default payment. Portion’s loans will be in cryptocurrency and/or fiat. Portion will charge a standard monthly interest rate on the loans.
Portion intends to offer loans in cryptocurrency and/ or fiat secured by physical art and collectibles. These loans are expected to be structured as term loans and consignor loans, or short-term advances. As currently contemplated, Portion will make term loans for an amount no greater than half (50%) of the value of the good. In the event of default on payment by the client, Portion will have the right to recoup the maximum value of the good covering the loan amount by liquidating the good via Portion’s marketplace. In exchange for the loan, collectors will give Portion physical possession of their authentic goods. Following the authentication of a good, Portion may offer a consignor loan to the seller. These consignor loans would act as a short-term advance of a good being sold. Portion may license this technology to offer consignor loans to additional marketplaces to enable similar functionality by which the marketplace will benefit from offering “upfront payment” to consignors after the item has been authenticated. The remainder of the payment will be transacted through a marketplace (Portion or third party) and the consignor will receive payment less the interest rate. Portion intends to offer the same model to authorized retailers who need subsidized loans (upfront payment) to help acquire supply to sell in their traditional marketplaces.
Another application of Portion’s blockchain technology regards insurance of the high-value goods on the marketplace. Portion would partner with insurance agencies leveraging pre-existing Blockchain Certificates issued to users. Subject to compliance with all applicable regulatory compliance, Portion intends to offer in-house personal property insurance (jewelry, art, etc.) for those who exclusively transact with cryptocurrency. In all modes of insurance, Portion intends to tie blockchain certificates with all of the appropriate paperwork (appraisals, policy terms, etc.).
Smart contracts verify authenticity, track provenance, and prove ownership of NFT assets. They also ensure payment and provide autonomous settlements. Various smart contracts running on Ethereum are utilized to ensure proper interoperability and modularization. By nature, smart contracts are transparent and open source. All transactions are visible which creates a free market for art and collectibles. Portion intends to exist as a decentralized financial (DeFi) application with open source technology available to the world.
THE DECENTRALIZED EXCHANGE FOR ART AND COLLECTIBLES
Portion has built a decentralized market platform from the ground up using Solidity (programming language for writing smart contracts) and Web3 (technology to deliver user-friendly integration of blockchain on the web). The result is a global marketplace utilizing cryptocurrencies where users around the world may buy, sell or place bids and asks on physical and digital goods.
When an order of buyer and seller matches the Blockchain Certificate and cryptocurrency autonomously swap. The seller receives the cryptocurrency while the buyer receives the Blockchain Certificate.
BLOCKCHAIN CERTIFICATE (NFT)
To verify the authenticity of physical art and collectibles, a Blockchain Certificate is represented as a unique Ethereum-based standard, such as ERC-721 or ERC-1155. The asset will interlink the two distributed networks of Ethereum and IPFS (InterPlanetary File System) to redundantly store both ownership and associated files (images, documents, videos). Verified artists, retailers, and brands create NFTs through a secure online portal utilizing web3 and distributed technologies. A smart contract executes creating a unique asset storing photos, serial IDs, ownership metadata, and any other relevant details for a particular good. If applicable, a Port (covered in a section below) can be irrefutably linked with a good providing an additional layer for proof of authenticity. Provenance becomes transparent on the public ledger as the good is transferred from entity to entity, reducing the need for future authentication. Digital art and collectibles will be created in a similar manner and use the same NFT standards. Creators will be able to drag and drop their media asset in the web portal, specify a unique name, add a description, and designate the edition size for their newly tokenized media asset.
The NFT is passed from entity to entity using Portion’s smart contract ecosystem as the goods are transferred physically or digitally. All art and collectibles that have been properly appraised and/or authenticated live virtually and immutably on the Ethereum blockchain acting as an irrefutable global registry.
Further linkage from the physical good to the NFT can be achieved through fraud-resistant holographic tags called Ports. Ports are uniquely developed by Portion and can be scanned with a smartphone through either NFC or QR code. The application of Ports allows data to be obtained directly by scanning. Retrievable information includes: - Owner’s Public Key - Sale History - Provenance - Associated Photos/Files - Additional Data If desired, Ports provide an extra dimension of decentralized data that can now be ascribed directly to a physical good via the usage of the unique tag. A mesh of high-value goods with 100% governance and authenticity becomes globally accessible and transparent.
THE PORTION TOKEN ($PRT)
The native digital cryptographically-secured utility token of the Portion platform (Portion Token) is a transferable representation of attributed functions specified in the protocol/code of the Portion platform, which is designed to play a major role in the functioning of the ecosystem on the Portion platform and intended to be used solely as the primary utility token on the platform and ecosystem. The Portion Token is issued on the Ethereum blockchain which was chosen for its global redundancy and large community of active development. In the spirit of blockchain technology and in order to best empower creators and collectors, Portion offers unique benefits and incentives to receive and use the Portion token. Token holders will have voting rights for new features, marketplace curation, and more. 1.5 billion Portion tokens will exist in totality, slowly being introduced into the ecosystem through various processes.
One of the key functionalities is for the Portion Token to act as a governance token for the Portion platform. Portion Token would allow holders to propose and vote on governance proposals to determine features and/or parameters of the Portion platform (new features, marketplace curation etc), with voting weight calculated in proportion to their token holdings. For the avoidance of doubt, the right to vote is restricted solely to voting on features of the Portion platform; the right to vote does not entitle Portion Token holders to vote on the operation and management of the Company, its affiliates, or their assets, and does not constitute any equity interest in any of these entities.
In the spirit of blockchain technology and in order to best empower creators and collectors, Portion Token would provide the economic incentives which will be consumed to encourage users to contribute and maintain the ecosystem on the Portion platform, thereby creating a win-win system where every participant is fairly compensated for its efforts, , proportionate to each participants’ contributions. The Portion Token is an integral and indispensable part of the Portion platform, because without the Portion Token, there would be no incentive for users to expend resources to participate in activities or provide services for the benefit of the entire ecosystem on the Portion platform.
Given that additional Portion Tokens will be awarded to a user based only on their actual usage, activity and contribution on the Portion platform, users of the Portion platform and/or holders of Portion Token who did not actively participate will not receive any Portion Token incentives.
The Portion Token does not in any way represent any shareholding, participation, right, title, or interest in the Company, the Distributor, their respective affiliates, or any other company, enterprise or undertaking, nor will Portion Token entitle token holders to any promise of fees, dividends, revenue, profits or investment returns, and are not intended to constitute securities in Singapore or any relevant jurisdiction. The Portion Token may only be utilized on the Portion platform, and ownership of Portion Token carries no rights, express or implied, other than the right to use the Portion Token as a means to enable usage of and interaction within the Portion platform. Liquidity Mining (DeFi) In order to encourage greater usage and participation on the Portion platform, sellers and buyers will be rewarded with the distribution of Portion tokens for utilization of the marketplace to perform transactions.
Additionally, during the expansion phase of the Portion platform it intends to incentivize physical and digital artists to create outstanding quality works which are well accepted by the market and collectors, so all original artist will continue to receive Portion Tokens incentives (similar to the royalties system in the traditional art market) as a residual reward each time their work is resold on the secondary market within Portion platform.
→ Portion Tokens ($PRT) are ERC-20 assets on the Ethereum Blockchain that are key to platform governance and curation.
→ PRT tokens can be used to bid on, purchase, and sell art and collectibles on the Portion platform.
→ Artists earn 500 $PRT every time they mint a NFT on Portion, distributed every Sunday.
→ Collectors earn 500 $PRT every time they purchase a NFT on Portion, distributed every Sunday.
→ Artists earn 11% royalties on secondary sales, paid in $PRT
→ Portion token holders can stake or farm their $PRT to collect yield.
→ PRT tokens are utilized for DAO platform governance and voting.
→ Staked PRT Tokens earn rewards from auction sales and platform fees (coming soon)!
Privacy and pseudo-anonymity are ensured as users are referenced on the platform via unique cryptographic addresses. Each user on Portion interacts with the platform via their own secured Ethereum third-party wallet (such as MetaMask), so no passwords or unencrypted private keys are stored on Portion, mitigating chances of the platform being hacked for user accounts.
The reputation of one’s identity is updated through peer review on the network as transactions occur. Reputation, risk levels, financing, and insurance issuances may be dynamically calculated based on a user’s reputation to mitigate entities who attempt to gamify Portion Token issuance. Web Portal A user-friendly web portal was developed to interact with the underlying smart contracts. Users seamlessly have access to the marketplace via various Ethereum wallets such as Metamask and Wallet Connect. Through their decentralized accounts, users can access a profile to review their blockchain transactions, which are representative of their marketplace transactions and open orders.
In addition to functionality found on the web portal, users may scan Ports to preview provenance, sale information, and GPS data of their authentic goods. Thus, this represents the first secure, digital wallet in your pocket, proving irrefutable ownership of goods. Other benefits of mobile application include the use of biometric security (e.g. Touch or Face ID) and an option to associate some of the account information directly to the device providing extra level of convenience and security.
Whether you’re an artist, collector, or looking to join the Portion community, the best way to get involved is to meet the team and get involved in our growing global network.