TOKENIZED ARTWORKS

Art Collectors Enjoy a New Model of Art Investment / Ownership / Patronage

IN-BETWEEN JOBS (oil on canvas, 100cm x 100cm, 2024)

There is a new investment opportunity on the horizon that empowers both collectors and artists (and the galleries that represent them). Asset Tokenization is a rapidly growing market, estimated to reach a value of 16 Trillion Dollar (US) by 2030. It is therefore worth considering and keeping on your radar.

THE ASSET

Karlalise is offering a few works for sale by means of blockchain title (called "Tokens") in 2025. Notably, she is tokenizing the following works:

• IN-BETWEEN JOBS (oil on canvas, 100cm x 100cm, 2024);

• EMERGENCE (acrylic and gold leaf on canvas, 390cm x 160cm, 2023);

• THE RENTERS (oil on canvas, 160cm x 90cm, 2024); and

• INTO THE HEART OF MATTERS (acrylic on canvas, 160cm x 165cm, 2023).

These works are assessed and insured by third parties, stored securely and exhibited occasionally. Tokens are shares or portions of legal title in the artwork (or asset) that may be traded, sold or gifted on specific market. As the value of tokenized assets increase, the value of the Tokens increase too.

TOKEN HOLDERS

Because tokens represent ownership of only one portion of the physical asset (the title for which is recorded on blockchain), the price will (at least initially) be less than the cost of buying the whole work. Therefore, art collectors, investors and patrons can support their favorite artists with a less expensive initial investment.

While token holders do not gain access to the physical work (at least exclusively - unless it is exhibited), they gain the following advantages:

• a less expensive initial outlay to support the practice of their favorite artists;

• an exclusive interest (legal title of proportional ownership) in the appreciating value of a tokenized asset (physical artwork) over time;

• a relatively liquid asset that is tradeable, sellable and bequeathable on open blockchain markets;

• exclusive benefits granted to token holders that they might not get by purchasing an artwork outright, or by investing in another type of asset (for example, updates from the artist or license fees from copyright transactions etc).

ARTISTS

Artists have the advantage of generating an income to support their practice from each purchase and subsequent trade of Tokens.

Artists can also protect their brand and legacy by selecting, storing and exhibiting a selection of their tokenized works over time in perpetuity, as opposed to losing trace of their works in the art market once sold.

Despite tokenizing the ownership of the physical artwork, artists retain copyright in their works. Therefore, they can offer prints and gain license fees from the use of images of the works in commercial ventures. Karlalise offers her token investors a portion of any license fees resulting from the use of images of tokenized works in commercial ventures over time, apportioned annually.

GALLERIES

Galleries would be well advised to embrace this new model of commerce in the art market, by offering this new stream of income to artists and the new model of investment and ownership to their collectors. Galleries continue to have a strong role to play in facilitating the art market for tokenized works, by:

• advising on the best artists' works to tokenize;

• valuing the artworks and the tokens (including the number offered and price);

• administering the insurance and third party storage of the works;

• subsequently exhibiting tokenized works over time; and

• acting as agent for the commercialization of images of tokenized artworks on behalf of artists.

ARTISTS: Are you an artist wanting to know more about tokenizing your artwork?

GALLERIES: Are you a gallerist keen to learn more about how to facilitate this aspect of the art market?

INVESTORS / COLLECTORS: Are you an art buyer or collector interested in supporting Karlalise's career as a practicing artist (without incurring the expense of an outright purchase of a whole painting)?

REGISTER YOUR INTEREST here and we'll be in touch with more information for you to consider.