What if we could give works of art, something like a sketch or a painting, similar properties to what Bitcoin or Ethereum have, turning art into currency?
What if, like Bitcoin, a work of art hanging on your wall was a type of money?
What if art could absorb wealth in such a manner as to distribute checks sent to you in the mail in the form of royalty streams of the painting––and for as long as you own the painting, you own the checks coming to you in the mail.
Unlike Bitcoin or Ethereum, however––imagine the art work hanging on your wall actually stores and hedges other assets in addition to owning the actual work. Imagine if its price point was stable.
What if art was a storage of treasure that created true plural money for communities? What if art not only provided treasure to the community, but was responsible for launching purpose driven projects into the world, at scale previously unimaginable?
All of this is demonstrable with our innovation of CopyCake™ and our first community pilot, Why not World Game!?
Designing a whole system like this is actually pretty easy, despite its inherit computational complexity. All forms of the creative arts already deploy flexible co-ownership structures that things like equities or real estate do not have, formal copyright. Copyright as a form of a royalty stream is already permissionless in its distribution, it is already flexible, and even natural. We build upon natural copyright as a type of legal contract that can develop novel properties once combined with a smart contract.
Copyright is naturally plural
This is what allows for a truly “novel” type of asset, because everything from story to music to visual to prose already doubles as a very flexible type of contract with pre-existing flexible properties.
“Copyright” already is the place where unbridled expression and imagination meets the law, forms institutions and industries, and drives global commerce.
Making this process naturally open and plural, anyone can create copyright; children, non-profits, corporations, universities, churches, there is not any individual in the world or organization in the world that cannot create “copyright”.
“Copyright” as a type of legal contract is highly unique, it is the natural law of creator assignment, the natural state of the relationship between the creator and their work.
CopyCake as a utility allows naturally forming copyright structures to perform something valuable in web3 that it could not previously.
What’s more, copyright ownership can be legally sold and transferred, and is not a security.
While NFTs are not, repeat NOT a natural copyright contract, they are “smart contracts.” They are simply a distributive medium and not the feature value.
As smart contracts, they can be combined with copyright contracts in a certain manner which allows them to be distributed, sold or transferred through digital wallets and combined with other types assets, even equities or real estate.
This allows copyright value to become supported and hedged by community created or community owned assets, all of which become a powerful new form of legally compliant fund raising that can tell a story, a truly narrative fund.
This is what a “CopyCake” asset is, an asset that is bundled and hedged with other equally valuable properties all in one single asset, “ART”.
We call this form of decentralized distribution Bootstrapping Arts and Engineering or B.A.E.
A decentralized “Studio Novità” represents the creation of a CopyCake project, while BAE is how the creation distributes itself.
As a form of “funding” for a decentralized community, BAE employs a classic bootstrap model, artists create a collection of art, file it as copyright, and sell the art, give the proceeds to engineering startups who pledge their equity value to support the value of the copyright through compliant pathways.
The owners of the artwork are members of the community who measure ownership by copyright and art, not by equity or stock. Any and all potential equity or asset is always supporting the value of the copyright, which distributes on a smart contract, a hybrid asset that is hedged.
Creating something from nothing.
For it to work splendidly, a community should have a collection of artists of some kind and a collection of designers and engineers of some kind.
Artists and designers always create value from “nothing”. The biggest IP and copyright in the world began with a blank sheet of paper. In addition, equity is also something that emerges from nothing. Let’s begin by combining these two types of assets.
Next, a “purpose” needs to be identified, whereas a purpose represents a cause, an emergency, a crisis that requires new technologies or services which can solve the problem and be taken to the public square.
A shared purpose defines the boundaries of the community.
While the designers or engineers have their version of a technical solution which could emerge as a product around the shared purpose, the group of artists create a “theme” around the purpose, a story that can be expressed through any form of media. This theme should be able to “grow” in copyright value in such a way that some form of “royalty stream” can be generated.
Once the theme is created; it is registered as US Copyright including royalty assignment side of the contract, and sold through NFT digital collectible contracts to a community that winds up owning 2/3rds of the royalty ownership.
Once sold, the community of artists then simply give the funds to the designers and engineers to form their company, product, or service.
In return, the designers and engineers forming startups agree to forgo the traditional Angel/VC/Wall Street IPO pathway and proceed with SEC regulated crowdfunding marketplaces, such as RegA+ for example.
Depending on the conditions, the community created equity within the startups can support the community created copyright value in a number of potential compliant and legal pathways.
Artists just bootstrapped a startup just like an Angel or VC, yet this funding occurs through hedging copyright creations via a smart contract, two contracts acting as 1 value, now bundled as one NFT collectible with a hedge value bundled into it.
Whoever holds the NFT digital collectible in their wallet (A) also owns all the potential of having it hedged with community created IP and equity (P) with all the benefits attached theirin.
Introducing CopyCake™, A into P
CopyCake!™ turns any NFT smart contract into actual and formal copyright, allowing it to be sold or traded as an ownership asset that also can produce something like dividends in the form of “potential”, which can play out differently depending on conditions on the ground. (We call this formula A into P and you can read the white paper for an A into P marketplace here.)
The formula is rather simple, A is the actual asset, item, or purchase while P represents the potential of the asset under various conditions.
CopyCake allows for a community to sell A (it actually is an art collection) and combine it with a “P” potential value when this asset is combined with the full creations and funding of the entire studio.
What is paid for in A (USD) equals A (in the form of a digital asset collectible) and comes with an equal amount of “P”, equal to the USDA value, which allows the holder to negotiate that position with the formal equity backed company.
This is accomplished by registering a blockchain address with the US Copyright Registration Office through a “coin as a service” or CAAS, called CopyCake!™.
Now that an NFT smart contract is bundled with a formal and legal copyright contract, making them indistinguishable, an opportunity presents itself to match the copyright ownership with any other type of digital asset, including SEC regulated security tokens in one set of possible conditions for how A into P can playout.
For example, if someone purchases the creative work for around $10k, and this individual is also an accredited investor, one of the startups in the fund could potentially match the amount paid for the art (A) with a convertible note (P).
If the conditions on the ground is one of the startups being issued RegA+ security tokens, these startups could potentially match the cost of the art work (A) with equity smart contracts on legally compliant marketplaces, (P)
If none of those conditions exist, the startup company could contribute equity directly to the copyright holding company which would be an LLC which distributes the royalty pool from the copyright into payments back to the copyright token holders.
No matter what the conditions are, CopyCake matches the cost of the actual work (A) with an equal amount of potential (P) which can play out as revenue streams, compliant equity exchanges, or royalty stream profit shares, all depending on the conditions on the ground and all of them legally compliant.
P as Royalty Stream and Collectible Stream
P will also equal all the potential of royalty stream, with 66% ownership control over the copyright contract they own. This royalty stream includes art investor marketplaces and art collector marketplaces. Any positive movement in either of these markets on the asset increases the value of the digital asset collectible in a secondary marketplace.
CopyCake allows multiple assets to become bundled into 1 contract to create a hedge.
Copyright and equity valuations all occur in USD measurements and transactions, not susceptible to the fluctuations of the crypto marketplace, allowing all community and creations to become “mutually supporting”, demonstrating ephemeralization and “synergetics” as can play out in a well designed whole system marketplace.
Copyright + DAO = Compliant Decentralized Ownership
A CopyCake!™ Smart Contract or NFT is kinda like stock, it does a lot of similar things that “stocks” do, except it’s not stock at all, it’s just formal copyright registration in a smart contract that then gets bundled with potential value (P) such as revenue share, licensing streams, and even equity backed security tokens, depending on the conditions, turning formal copyright into something new for web3 that it did not have previously.
Let’s face it, web3 has operated on the assumption that an NFT is the same as copyright––its not, until CopyCake!™
CopyCake!™ is the entire funding, distribution, and community building innovation that allows Big Mother’s DAO to fund partner projects and collaborations through a classic bootstrapping model that, combined with Bucky Fuller’s design principles, becomes a dynamic new type of innovative fund that evolves within compliance.
CopyCake ownership therefore is literal ownership of what the DAO is, a collection of original copyright and IP which the community takes ownership of in shares of CopyCake!™.
CopyCake!™ is a legally compliant, fun, creative and innovative way to build stored and shared ownership value within a decentralized autonomous network.