Our business model is based primarily on two revenue streams: issuance and secondary market.
• Issuance: Artworks listed on Timax-Art attract a one-time issuance fee of 6% which is charged to asset owners. Investors participating in auctions pay a 2% one-off fee. These fees are charged on
settled transactions only.
• Fine Art Exchange: Shares of artworks will be tradable on Timax-Art Fine Art Exchange. It will always be free to sell your auction-acquired shares, while buyers will pay a commission.
The issuance of the ART token will be controlled by a smart contract deployed on the Ethereum network. The token will conform to the ERC20 standard. A total of 100,000,000 tokens will be issued, and they will be allocated in the following ratios: • 30% sold in the crowdsale. • 30% kept as reserve liquidity fund • 20% allocated to incentivise partners and client acquisition • 20% retained by Timax-Art The crowdsale seeks to collect ETH equivalent to US$ 3 million (soft cap) which will allow Timax- Art to launch the platform and operate in our first market, which is highly likely to be Luzern, Switzerland. There is a further milestone of US$ 10 million which Timax-Art will use to accelerate growth and operate in additional markets in top art cities worldwide (e.g. New York, London, Paris, Luxembourg, Shanghai, Hong Kong, Singapore). There is a further stretch goal of US$ 20 million (hard cap) which Timax-Art will use to create its own art fund of high-grade artworks to be listed on the platform. Some collections that we have in the pipeline are Blue-Chip Artists, Contemporary Art, Undervalued Old Masters, and Rising Emerging Asia. In summary: • Soft cap: US$ 3M (platform launch) • Milestone: US$ 10M (additional markets) • Hard cap: US$ 20M (art fund) This target prices each ARTIK token at US$0.66. The actual price in ETH will be set a few days before the sale starts. The implementation of these caps aims to achieve a broad, diversified distribution. ARTIK tokens will be transferrable 7 days after the end of the crowdsale.
30% of the tokens will be sold during the crowdsale and therefore will be allocated to buyers. The number of ARTIK tokens is a fixed supply of 100,000,000. Demand for ARTIK tokens will vary. Tokens are required by Timax-Art’ smart contracts to operate. ARTIK tokens will be locked in for the duration of the Dutch auctions and therefore its supply will decrease. The more artworks are auctioned through Timax-Art the greater the demand for ARTIK tokens will be. These market dynamics are likely to play a role in the price of the token in the crypto exchanges. A further 30% of the tokens will be kept in a liquidity reserve fund to be used by Timax-Art to guarantee liquidity during the art auctions. Liquidity is a key element for marketplaces to succeed and therefore we're reserving a large portion of the tokens for this purpose. Timax-Art may purchase more tokens from the open exchanges to top up this fund on a discretionary basis. We plan to create a healthy and inclusive ecosystem and therefore we anticipate using the ARTIK tokens to incentivise galleries, museums, art asset managers and other partners. We are setting aside 20% of the tokens for this. Finally, the last 20% chunk of the token issuance will be utilised to reward and incentivise the current and future Timax-Art team of experts and advisors. The team tokens will have a 24-month vesting period with a 6-month cliff. We're putting this structure in place to ensure that the incentives of the team and Timax-Art supporters are aligned. Tokens won't be transferable until vesting (on a monthly pro-rata basis).
USE OF SALE PROCEEDS
We anticipate that cryptocurrency collected during the crowdsale will be allocated in the following manner.
The actual allocation may vary depending on the final amount raised during the crowdsale.
TARGET SEGMENTS AND TRENDS
Timax-Art' target market is sizeable in its own right. In addition, we capitalise on a number of recent investment trends which are set to continue:
The Shared Economy:
Timax-Art allows investors to syndicate and jointly own a piece of art. This model has been validated at large by the continual increase in popularity of the many property and equity crowdfunding platforms available.
Investment in cryptocurrencies and crypto-assets has grown exponentially over the last few years. The value of many of these digital assets has increased 50x in less than a year. Trading volumes at crypto-exchanges are at all-time highs and show no sign of slowing down. The value proposition of cryptographic tokens is simple: democratise access to wealth. Blockchains allow investors to be in full control of their digital assets without having to rely on intermediaries or be exposed to central counterparties. Timax-Art capitalises on this trend by opening up trillions of dollars’ worth of fine art to the crypto investor community.
Investment in Art Finance Innovation:
The investment in art-related startups quadrupled in the last two years reaching over $500m a year.
Art as Collateral:
Art finance is expected to grow significantly. The US art-secured lending market has grown an estimated 15 to 20 percent annually for the last five years.
Over the coming years, more and more money will be handed to younger generations, who are actively looking to participate in the decision making of their investments. The behaviour of this digitally native generation favours digital-first platforms and the ability to self-invest. Millennials are going to be the largest adult segment by 2020.
The younger generation of investors favour tangible assets over traditional capital market products, such as government bonds and stocks. These products are currently offering negative or
very low interest rates, making alternative assets even more attractive.