We are building a contained legal system for the perpetual redistribution of objects as an alternative solution to the money problems faced by artists and creators. This system adds a free royalty swapping component into a binding seller-steward relationship that we enforce or negotiate for the benefit of all parties. The main value proposition is a tax on flipping and perpetual holding that goes directly into the artist's (or first seller's) pockets. What's better than a resale royalty? A frequent one that doubles as a lock for your rights and an incentive to share.
Jubilee solves three problems: resale royalties, storage, and fair use.
- Resale royalties. They are a) unenforceable thanks to the legal definition of ownership, b) far and few between thanks to excessive prices, and c) not all they’re cracked up to be, thanks to market tendency to create feedback loops around the already successful.
- Storage. Many artists and sellers have inventory that never sells because they can’t find buyers willing to pay what they think is a fair price. That inventory would move if prices were lowered.
- Fair use. If theft is the use of force to exclude someone from a scarce resource without their consent, then property — the right to say "this is mine" — is a form of theft.
By enforcing the perpetual capture of value, artists and sellers can lower their prices. By requiring possession of an artwork and all of its associated sharable future proceeds as a condition on full legal ownership of a piece, artists and sellers are incentivized to share their income. By regulating use rights, both flipping and perpetual holding are monetized for your benefit.
A major complaint about cryptocurrencies is that they put a lien on the future
in exchange for profit today. Missing from this is an explanation about what liens are, and the benefits of mass-enforcing them in a consolidated manner in the physical world.
A lien is a legal mechanism that grants the right to take property away. Instead of putting a metaphorical lien on the future, we lien objects
today in exchange for the right to capture their future value for you. Then we monitor for non-compliance. Though similar to The Artist's Reserved Rights Transfer and Sale Agreement
, the outcome of this pattern is more like the Roman Empire's emphyteusis.
Originally created for the improvement of imperial land without relinquishing full ownership, the emphyteusis
was later proposed in 19th century Spain as a solution for the monopoly of natural resources.
Sharable future proceeds (sfp) are a resale royalty that must be reassembled by an object's steward before its legal title can be transferred. Sfp can be traded (through an entanglement), and are equalized on both sides to ensure reciprocal outcome.
Post an artwork that you own and would like to sell. 10% of its price is converted to sfp. They cost nothing, and are yours until you trade them.
Jubilee is built for the art community as a whole. We welcome artists, dealers, curators, and collectors who think they would benefit from a more liquid property rights system.
Becoming a steward on Jubilee is different from what you are used to, but may feel the same at first. When you normally buy a piece of art, you get to keep it. With us, you are its steward, and the art can be taken away by anyone who spends more than you. As a steward, you have options available for retaining possession of the piece, but your right-to-keep is usually taxed. You can either:
- Pay more up front and hope no one else outspends you,
- Sign in when your six month grace period is up, and increase the piece’s price above what you think others might pay in exchange for an annual 6% Buyout Prevention Fee, or
- Outbid new offers by paying a larger Buyout Prevention Fee equal to the difference between your price and their offer + $25.
In all cases, the initial amount you spent is treated as a deposit, and is returned along with any applicable profit when the art is successfully transfered to the next steward in line.
When you find an artwork you like, fill out the bidding form and add your shipping details. The seller will approve, deny, outbid, or ignore your offer. If approved, you will be asked to complete payment. When payment goes through, the seller will mail the artwork to the shipping address you provided in the first step. We handle legal filings. When you receive the shipment, mark the item as received, and it will be added to your profile. After six months, you are given the option to increase the piece’s purchase price, and then directed to a portal to make a recurring annual payment worth 6% of this new price (i.e., a Buyout Prevention Fee). If you do not make these payments on time, the artwork's purchase price will drop back to the standard value (what you spent + 25%).
Others may place bids on an artwork you currently hold. Any offer that meets either the standard value or the higher purchase price you subsequently set (whichever applies to the current situation) must be outbid by paying a larger Buyout Prevention Fee, or honored. If no action is taken, the piece is automatically flagged as 'missing,' and we begin an investigation.
Stewards are free to obtain profit from display of the artwork, so long as they do not lend it, use it as collateral, or cause it to be changed or damaged. Copyright remains with the artist. You are not free to sell the artwork outside of Jubilee unless you also manage to acquire all of its sfp.
80% of every sale goes to the seller, 10% is distributed among the sfp holders, and 10% goes to Jubilee. If the seller and sfp holder are the same person (as is the case with all newly posted art), then they get the full 90%. Buyout Prevention Fees are split 70/30% between sfp holders and Jubilee. Stewards who resell their artwork get their initial deposit back in full so long as they do not resell the artwork for less than its listed price. Read our Payments Policy
for more detail.
The seller picks the initial price of an artwork. Every subsequent sale increases the price by 25%. Price increases beyond this are voluntary attempts to gain or keep possession.
Stewards are free to add or change the frame if present, but must have their framer submit a receipt to firstname.lastname@example.org
. The price paid will be added to the default price increase.