Enhancing Art as an Asset Class with Blockchain
March 2025
Table of Contents
  • Art as an Investment Asset
  • Current Market Challenges
  • Market Trends Driving Innovation
  • Resale Revenue Share Model
  • Art Asset-Backed Lending on Chain
  • ArtWise DAO
  • Blockchain Foundation
  • Technical Architecture
  • Security Measures
  • Target Markets
  • Market Size and Potential
  • Revenue Projections
  • Revenue Streams
  • Competitive Advantage
  • Token Utility
  • Token Allocation
  • Token Release Schedule
  • Token Value Accrual Mechanisms
  • Token Economics Model
  • Development Timeline
  • Key Milestones
  • Core Team
  • Advisory Board
  • Regulatory Compliance
  • Disclaimers
12. References
Executive Summary
ArtWise is pioneering a comprehensive decentralized protocol designed to transform the art market by establishing standardized finance practices through blockchain technology. Our mission is to democratize access to art investments, enhance market liquidity, and establish transparent industry standards through a community-driven approach.
The global art market, valued at approximately $65 billion in 2023, has historically been characterized by opacity, high entry barriers, and limited liquidity. Despite these challenges, art consistently outperforms traditional asset classes, with high-net-worth individuals increasingly allocating portions of their portfolios to art investments. According to the Deloitte Art & Finance Report 2023, 85% of wealth managers surveyed believe art and collectibles should be integral to wealth management offerings.
ArtWise addresses critical market challenges through three interconnected innovations:
1
Resale Revenue Share™ Model
Our tokenization platform allows fractional ownership of high-value artworks, enabling investors to participate in the art market with minimal capital while sharing in potential appreciation upon resale.
2
Art Asset-Backed Lending
Our protocol facilitates loans with competitive terms (up to 70% Loan-to-Value ratio) using verified art as collateral, providing liquidity to art owners without forcing sales.
3
ArtWise DAO
Our decentralized autonomous organization unites global art professionals to establish and maintain industry standards for valuation, authentication, and market practices.
By 2026, ArtWise aims to tokenize over $200 million in art assets and facilitate more than $150 million in art-backed loans. Our protocol will bring unprecedented efficiency and accessibility to the art market, transforming it into a viable alternative asset class accessible to a broader range of investors.
The ArtWise token (AWT) will serve as the governance token for the protocol, providing holders with voting rights on key decisions while aligning incentives across the ecosystem. Our established partnerships with leading galleries, auction houses, and financial institutions position us for rapid growth and adoption.
This whitepaper outlines our vision, technology architecture, business model, and roadmap for creating the "Bloomberg of the Art World" — a comprehensive ecosystem where art and finance converge through decentralized technology.
Market Overview
Art as an Investment Asset
The global art market has demonstrated remarkable resilience and growth potential. According to the Art Basel and UBS Survey of Global Collecting 2024, the market reached a valuation of $65 billion in 2023. Art has historically outperformed the S&P 500, with blue-chip art particularly demonstrating strong returns.
Fine art's performance as an investment class is increasingly recognized by wealth managers and financial advisors. As reported in the Deloitte Art & Finance Report 2023, a significant majority (85%) of wealth managers believe art and collectibles should be part of a comprehensive wealth management offering. This perspective is reinforced by art's proven ability to serve as a hedge against inflation and market volatility.
The evolution of technology, particularly blockchain and tokenization, is creating unprecedented opportunities to address longstanding challenges in the art market. By enabling fractional ownership, enhancing transparency, and establishing verifiable provenance, these innovations are poised to transform how art is bought, sold, and valued.
Current Market Challenges
High Financial Barriers
The most sought-after artworks typically sell for millions of dollars, limiting access to wealthy investors. This exclusivity prevents broader market participation and restricts liquidity.
Illiquidity
Art assets can be difficult to sell quickly without significant price concessions. The average time to sell a fine artwork can range from several months to years, creating challenges for investors seeking to rebalance portfolios or access capital.
Inefficient Transactions
Deals are slow, opaque, and involve numerous intermediaries. The lack of standardization in transaction processes increases costs and creates friction in the market.
Financing Limitations
Traditional art-backed loans are typically restricted to major banking institutions and have conservative loan-to-value ratios. Most lenders offer only 30-50% LTV, significantly undervaluing art as collateral.
Inconsistent Valuation
Lack of standardized pricing and assessment methodologies creates uncertainty for buyers, sellers, and financiers. Valuation can vary widely between appraisers, making it difficult to establish fair market value.
Market Trends Driving Innovation
Several key trends indicate growing interest in art investment solutions:
Rising Interest in Alternative Investments
Amid economic uncertainty, investors are increasingly seeking diversification beyond traditional stocks and bonds. According to the UBS Global Wealth Report 2024, alternative investments now compose a significant portion of high-net-worth portfolios.
Increasing Demand for Asset-Backed Lending Solutions
Art owners are increasingly seeking ways to unlock liquidity from their collections without selling prized pieces. The art-secured lending market has grown at a compound annual growth rate of approximately 15% since 2020.
Growing Adoption of Blockchain for Real-World Asset (RWA) Tokenization
The market for tokenized real-world assets is projected to reach $16 trillion by 2030, according to Boston Consulting Group. Art represents a significant opportunity within this emerging sector.
Evolution of Decentralized Finance (DeFi)
The creation of new financial primitives within the DeFi ecosystem is enabling novel approaches to asset valuation, collateralization, and risk management.
Generational Wealth Transfer
An estimated $84 trillion in wealth is expected to transfer from Baby Boomers to younger generations over the next two decades in the US alone, with art collections representing a significant portion of these assets.
These trends, coupled with technological advancements, create an opportune moment for ArtWise's innovative approach to art investment and financing.
The ArtWise Solution
ArtWise is creating a comprehensive ecosystem that bridges traditional art markets with decentralized finance. Our solution consists of three key components:
Resale Revenue Share™ Model
One of the most exciting opportunities in the art market today is leveraging blockchain technology to create new revenue streams for art asset owners. At ArtWise, we've developed a Resale Revenue Share™ model that empowers collectors to unlock the financial potential of their collections while retaining full/partial ownership.
How it works:
Acquisition
ArtWise sources high-quality blue-chip artworks with verified provenance.
Authentication
Rigorous verification and assessment process conducted by art professionals within the ArtWise network.
Tokenization
The artwork is tokenized into digital shares, with each token representing partial ownership.
Distribution
Tokens are made available to investors through the ArtWise platform.
Revenue Generation
When artworks are resold, token holders receive their proportional share of the profits.
Key Differentiators:
  • Empowerment Through Ownership: Unlike traditional models where ownership is fully transferred, ArtWise allows collectors to retain partial ownership while monetizing their assets.
  • Programmable Resale Revenue Share™ : Smart contracts ensure transparency and automation in shares distribution, eliminating intermediaries.
  • Global Reach: By operating on-chain, ArtWise connects collectors to a diverse marketplace, regardless of geographical location.
  • Sustainability: This model aligns with the growing demand for innovative financing solutions in the art market, providing liquidity without sacrificing long-term value.
Art Asset-Backed Lending on Chain
ArtWise revolutionizes art financing by enabling art owners to access liquidity without selling their valuable pieces.
How it works:
Asset Submission
Art owners submit their artwork for assessment.
Community-Driven Assessment
A committee of qualified art professionals assesses the artwork and determines its fair market value using multiple valuation methodologies.
Vault at Local
The artwork is securely vaulted in a local, insured, and climate-controlled facility that is partnered with ArtWise and follows insurance guidelines.
Tokenization & Smart Contract Management
The artwork is tokenized on the blockchain, and the tokens representing ownership. Loan terms, collateral management, and repayment are governed by transparent smart contracts.
Instant Loan from Protocol
The art owner accesses an instant loan (up to 70% LTV) from the ArtWise DeFi Protocol with interest and repayment terms defined in a smart contract.
Defaulting Process
If a borrower defaults, the artwork is transferred to the lending pool and can be liquidated or held as an asset.
Key Advantages:
Higher loan-to-value ratios
Up to 70% compared to traditional art financing at 30-50%
Lower fees
Through smart contract automation
Global accessibility
Regardless of geographic location
Faster processing
Reducing time from monthes to days
ArtWise DAO
The ArtWise Decentralized Autonomous Organization (DAO) forms the governance backbone of the ecosystem, bringing together thousands of art professionals globally to establish industry standards.
Core Functions:

Artwork Valuation
Establishing transparent protocols for art appraisal.

Authentication Standards
Defining verification requirements and processes.

Investment Criteria
Setting parameters for artwork selection and portfolio management.

Provenance Verification
Developing standardized approaches to artwork history documentation.

Protocol Governance
Voting on protocol upgrades, fee structures, and ecosystem development.
Membership and Participation:
The DAO consists of:
  • Gallery owners and dealers
  • Auction house professionals
  • Art appraisers and authenticators
  • Museums
  • Art consultants and advisors
  • Legal and financial experts specializing in art
Members stake AWT tokens to participate in governance, with voting power proportional to their stake and reputation within the ecosystem.
By combining these three components, ArtWise creates a comprehensive solution that addresses the major pain points in the art market while unlocking new value for collectors, investors, and art professionals.
Technology Infrastructure
ArtWise leverages cutting-edge blockchain technology to ensure security, transparency, and efficiency across its ecosystem.
Blockchain Foundation
ArtWise's protocol is built on the Ethereum blockchain, selected for its security, widespread adoption, and robust smart contract capabilities. Key components include:
Smart Contracts
Self-executing contracts with the terms of the agreement directly written into code
ERC-20 Tokens
For the ArtWise governance token (AWT)
ERC-721 Tokens
For unique digital certificates of ownership (NFTs)
Chainlink Oracle Integration
For secure external data feeds needed for art valuation processes
Technical Architecture
The ArtWise platform consists of several interconnected layers:

3

User Interface Layer
Web and mobile applications for investors, art owners, and DAO members
Application Layer
APIs and services connecting front-end interfaces with blockchain infrastructure
3
Smart Contract Layer
Business logic governing lending, ownership, and governance
Blockchain Layer
Foundational infrastructure for secure and transparent transactions
Security Measures
  • Multi-signature wallets for treasury management
  • Formal verification of smart contracts
  • Regular security audits by leading blockchain security firms
  • Insurance coverage for tokenized assets
  • Decentralized storage of artwork documentation and provenance data
By building on established blockchain protocols while implementing rigorous security measures, ArtWise ensures that all transactions within its ecosystem are secure, transparent, and efficient.
Market Opportunity
Target Markets
ArtWise addresses the needs of three primary market segments:
Art Asset Owners
  • Galleries and dealers
  • Private collectors
  • Art foundations and institutions
  • Museums
Investors
  • High-net-worth individuals
  • Family offices
  • Institutional investors
  • Art enthusiasts with limited capital
  • Crypto investors
Lenders
  • Financial institutions
  • High-net-worth individuals
  • Family offices
  • DeFi liquidity providers/Crypto treasuries
  • Yield-seeking investors
Market Size and Potential
The total addressable market (TAM) for art and collectibles is estimated at $2.8 trillion, with the modern and contemporary art segment accounting for approximately 50% at $1.4 trillion.
ArtWise's serviceable addressable market (SAM) focuses on the actively traded portion of this market, which represents 3-4% of the total value annually, or approximately $56 billion.
Our serviceable obtainable market (SOM) in the near term aims to capture 10% of the SAM, representing a $5.6 billion opportunity.
Revenue Projections
Based on current market dynamics and our growth strategy, ArtWise projects the following revenue trajectory:
These projections are based on conservative adoption rates and transaction volumes, with potential upside as the platform gains traction and market awareness increases.
Business Model
ArtWise's business model is designed to create sustainable revenue streams while providing maximum value to all stakeholders in the ecosystem.
Revenue Streams
Art Financing
  • 3-5% brokerage fee on art-backed loans
  • 2% management fee on lending pools
Private Sales and Marketplace
  • 5-15% service fee/commission
  • Secondary market transaction fees (1-2.5%)
Art Investment Marketplace
  • 2% issuance fee on tokenized artworks
  • 1% secondary market trading fee
Add-on Services
  • 5-10% rebate from partner service providers (insurance, storage, logistics)
  • Premium subscription services for advanced analytics and market insights
Competitive Advantage
ArtWise distinguishes itself from both traditional art financing institutions and digital art platforms through several key advantages:
*Subject to asset quality and market conditions
By combining the expertise of traditional art market participants with the efficiency and accessibility of blockchain technology, ArtWise creates a unique value proposition that addresses the needs of all stakeholders in the art ecosystem.
ArtWise Token (AWT) Economics
Token Utility
The ArtWise Token (AWT) is an ERC-20 token that serves as the governance and utility token powering the ArtWise ecosystem. AWT enables a decentralized approach to art finance by aligning the interests of all participants, including art professionals, investors, borrowers, and service providers.
AWT is designed with multiple utility functions to create a robust token economy:
1. Governance
AWT holders can participate in the ArtWise DAO, voting on critical decisions affecting the protocol:
1
Artwork Selection
Approving artworks for tokenization
2
Protocol Parameters
Setting lending rates, loan-to-value ratios, and fee structures
3
Treasury Management
Determining how ecosystem funds are deployed
4
Network Upgrades
Voting on technical improvements and new features
5
Risk Management
Establishing and updating risk parameters for lending
Voting power is calculated based on a combination of token holdings and reputation within the ecosystem, with a quadratic voting mechanism to prevent excessive concentration of power.
2. Staking and Validation
By staking AWT, token holders contribute to the security and functioning of the network:
  • Artwork Validation: Participants can stake tokens when validating artwork authenticity and valuation
  • Liquidity Provision: Earn rewards by staking tokens in lending pools
  • Risk Underwriting: Stake tokens to back loans and earn a portion of interest payments
  • Dispute Resolution: Tokens staked when participating in resolving loan defaults or disputes
3. Fee Discounts
AWT holders receive fee discounts across the ArtWise platform:
  • Lending Fees: Reduced origination and servicing fees for loans
  • Transaction Fees: Lower fees when buying or selling tokenized art
  • Service Fees: Discounts on ancillary services like insurance, storage, and shipping
  • Marketplace Fees: Reduced commissions on primary and secondary sales
The discount scale is progressive, offering greater benefits as the amount of AWT held increases.
4. Access and Privileges
Holding AWT provides special access to platform features and opportunities:
1
Priority Access
Early access to new artwork offerings
2
Exclusive Events
Invitation to private viewings and expert discussions
3
Enhanced Analytics
Access to premium market data and investment insights
4
Curator Features
Ability to create and share curated collections of artwork
5. Rewards and Incentives
The AWT token rewards active participation in the ecosystem:
  • Validation Rewards: Tokens earned for correctly assessing artwork
  • Contribution Rewards: Incentives for providing valuable insights and expertise
  • Referral Bonuses: Rewards for bringing new users to the platform
  • Liquidity Mining: Additional tokens earned for providing liquidity
Token Allocation
The total supply of AWT is fixed at 250,000,000 tokens, allocated as follows:
Token Release Schedule
To ensure long-term alignment and prevent market disruption, tokens are subject to the following vesting schedules:
Team & Advisors (20%)
  • 1-year cliff, followed by 3-year linear vesting
  • Total vesting period: 4 years
  • Monthly unlock after cliff period
Investors (15%)
  • 6-month cliff, followed by 18-month linear vesting
  • Total vesting period: 2 years
  • Monthly unlock after cliff period
Community & Ecosystem (30%)
  • No cliff
  • 5-year linear release
  • Monthly distribution
Treasury (15%)
  • Controlled by DAO governance
  • Initial 30% available, remainder unlocked according to governance decisions
  • Minimum 3-year vesting on remaining tokens
The initial circulating supply at Token Generation Event (TGE) will be 25,000,000 AWT (10% of total supply), comprising:
  • 7,500,000 tokens from Liquidity Provision (30% of allocation)
  • 7,500,000 tokens from Community & Ecosystem (10% of allocation)
  • 5,000,000 tokens from Treasury (13.3% of allocation)
  • 5,000,000 tokens from Staking Rewards (20% of allocation)
The remaining tokens will be released according to the vesting schedule, resulting in the following projected circulating supply over time:
Token Value Accrual Mechanisms
The AWT token incorporates multiple value accrual mechanisms to align with the growth of the ArtWise ecosystem:
Buy-Back and Burn
A portion of the fees generated by the platform will be used to buy back and burn AWT tokens
Staking Incentives
Incentivizing users to stake tokens removes them from circulation and reduces selling pressure
Fee Sharing
AWT stakers receive a portion of the fees generated by the platform
Vote-Locking
Users can lock their tokens for extended periods to increase their voting power and rewards
Token Economics Model
Based on projected growth in tokenized art value and lending pool size, we model the following impact on AWT token economics:
The ArtWise Token (AWT) is designed to be a critical component of the ArtWise ecosystem, driving participation, aligning incentives, and creating value for all stakeholders. Through its multifunction utility, carefully designed tokenomics, and sustainable value accrual mechanisms, AWT aims to become the standard for governance and utility in the decentralized art finance sector.
As the ArtWise platform grows, the value of AWT is expected to reflect the increasing transaction volume, expanding user base, and rising revenue of the ecosystem, creating a virtuous cycle that benefits long-term holders and active participants.
Roadmap
ArtWise's development and market expansion strategy follows a structured timeline:
Development Timeline
Q1-2025: Finalize Pipeline, Develop Tokenomics, and Publish Comprehensive Whitepaper
This is a foundational period. ArtWise will solidify its operational pipeline, define the structure and economics of its native token (AWT), and articulate its vision, technology, and market strategy in a whitepaper that will be investor-ready.
Q3-2025: Launch Native Token for Ecosystem Participation (AWT)
ArtWise will introduce its AWT token. AWT will incentivize engagement, reward contributions, and facilitate governance within the ecosystem.
Q4 2025: Launch Pilot Project Featuring a Curated Blue-Chip Art Collection
ArtWise will launch a pilot project showcasing blue-chip artworks. The pilot will demonstrate the viability of fractional ownership and tokenization.
Q2 2026: Launch Full Platform with Tokenization Capabilities and Scale Operations
ArtWise will launch its full platform, enabling art tokenization, asset-backed lending, and community governance. Operations will be scaled to support a growing user base and art collection.
Q2 2027: Introduce Art Asset-Backed Lending
ArtWise will introduce its art asset-backed lending feature. It will provide art owners with access to DeFi financing by leveraging community driven assessment process.
Expand Into other alternative assets and Collectibles
ArtWise aims to integrate its platform with other luxury assets and collectibles. This phase will focus on leveraging ArtWise's existing infrastructure and user base to facilitate tokenization, lending, and trading of luxury items, expanding its reach into new markets.
Team and Advisors
ArtWise brings together a diverse team of experts in art, finance, blockchain, and AI.
Core Team
Grace Lau - Founder/CEO
  • 10+ years experience in art market
  • Registered GLG consultant, blue-chip specialist serving UHNW clients
  • Art Business Certificate at Christie's Education NYC
Olivier Demblum - CRO
  • Art entrepreneur with 20 years in wealth and asset management
  • Former Director at Opera Gallery Hong Kong and Pictet Group
  • Extensive network of collectors and partners
Jahangeer Ansari - Web3 Advisor
  • 15+ years in Marketing & BD
  • Web3 native with 4 successful project launches
  • Experienced in launching innovative products
Wei Sun - AI Strategist
  • Founder of Humanity+ China
  • Partnered with APEC to host Global Innovator Conference
  • Regular media commentator on emerging tech
  • Boston University alumnus
Tian Zhang - Industry Advisor
  • 7+ years as Beijing office liaison for Poly Auction Hong Kong
  • Led planning of 50+ exhibitions and auctions
  • Specialist in contemporary art
Jing Wang - Design Director
  • 10 years of design expertise in product, branding, and e-commerce
  • Led design at Zalora
  • Co-founder of fashion brand JÚNEE
Juntaro Iwase - Blockchain Advisor
  • Senior gaming and entertainment professional
  • Former digital marketing consultant at Meta
  • Entrepreneurial communicator with extensive industry connections
Advisory Board
S. Jack Heffernan Ph.D.
Founder, Knightsbridge.asia
Investment and asset management specialist
Malcolm Thorp
Former APAC Head of Integrated Media, JPMorgan
Marketing and media strategy expert
Partners and Investors
ArtWise has established strategic partnerships with key players in the art, finance, and technology sectors:
Strategic Partners
Art Procurement Partners
Technology Partners
Financial Partners
Art Service Partners
Media and Marketing Partners
Legal Considerations
Regulatory Compliance
ArtWise is committed to operating in full compliance with applicable regulations across all jurisdictions. Our approach includes:
Legal Expertise
Working with top-tier legal firms specializing in blockchain and art law
KYC/AML Procedures
Implementing robust KYC/AML procedures for all platform participants
Securities Compliance
Structuring token offerings in accordance with securities regulations
Licensing
Maintaining appropriate licenses for financial activities in key jurisdictions
Disclaimers
This document is for informational purposes only and does not constitute an offer to sell or solicitation of an offer to buy any securities, tokens, or other digital assets. Any such offer would be made only by means of a confidential offering memorandum and in accordance with applicable securities and other laws.
The projections, estimates, and market assessments contained herein are based on research believed to be reliable but are subject to significant uncertainty. No representation or warranty is made as to the accuracy or completeness of such information, and it should not be relied upon as such.
Investing in tokens, digital assets, and startups involves significant risks, including loss of the entire investment. Investors must be prepared to bear these risks and conduct their own due diligence before making any investment decision.