Sliced.art Tezos Ecosystem DAO Proposal

Homebase DAOs Tezos Ecosystem DAO
1

Name:
The Crunchy.network team

Email or contact method:
team@sliced.art

Geographic location:
United States

Are you applying on behalf of a company, or as an individual:
Applying on behalf of the Sliced.art team

Frank Kirk - Co-Founder/Product Manager/Product Designer
Tezos ICO participant, baker, founder of Rocket Launchpad and product manager/designer for Crunchy Network. Also has 7+ years experience leading product and design for military and commercial projects.

Josh Dechant - Co-Founder/Lead Engineer
Software Engineer with 20+ years experience, founder of Crunch.network, smart contract developer for Rocket Launchpad and smart contract developer for numerous Tezos NFT projects such as Ziggurats and Ottez. Formerly Lead Engineer at Interpop.

Huy Do Quang - Junior Full Stack Developer
Software dev since 2020, Huy received smart contract training from Tezos Tunisia in October 2021. He joined Crunchy.network early 2023 and focuses on the DEX agg and indexer.

If company, provide company name and website:
sliced.art

Name of project or idea:
Sliced.art

Detailed description of your project or idea and why you believe it deserves funding:

What is Sliced.art?

To put it simply, Sliced.art is a new way to collect NFTs by allowing artists and NFT holders the ability to slice NFTs into “slices” which can be sold on our marketplace.

Along with the ability to slice, the slice.art smart contract also allows users the ability to set a reserve price for the underlying NFT that was sliced. The weighted average reserve price between all votes will be the buyout auction price. If an individual comes along and decides they wish to buyout the underlying NFT that was sliced, a buyout auction begins at the reserve price and runs for 7 days. Once the underlying NFT is sold, individuals that hold slices can burn their slices to redeem their share of the sale.

Slicing an NFT reduces the cost of entry for those who are normally priced out of Tezos’s blue-chip NFTs. Collectors can own slices of NFTs, while reducing the risks and costs that are normally associated with buying that NFT outright.

With sliced NFTs, liquidity is also increased. When you slice a NFT, generally each fragment will be priced much lower than the NFT itself. This allows for everyone the opportunity to purchase these NFT slices. Now, instead of listing a NFT and waiting for days, weeks or months for someone to purchase an NFT that has a floor of 1,000 XTZ, you can now slice that NFT into 1,000 fragments and list each piece for 1 XTZ each.

It’s now possible to “slice” up an NFT into millions of fungible tokens. These fungible tokens can then be sold on Sliced.art or be traded on a supported marketplace, like OBJKT.com, or any NFT marketplace that wishes to integrate Sliced.art.

Royalties

Sliced NFTs also open up a new way for artists to earn royalties. With Sliced.art, an artist can mint a 1 of 1 NFT (on their platform of choice), create a certain number of slices on sliced.art, and set a annual curator fee. That annual curator fee is an inflation percentage that goes to the individual that sliced the NFT. For now, this fee is set to a max of 10% annually. This means that the supply will automatically inflate by up to 10% on an annual basis, and the increase in slices will be directly sent to the artist’s wallet. With these earned slices, the artist is free to resell them, or hold them for the eventual buyout of the underlying NFT, or both. This fee, if set, is enforced by the Sliced.art protocol, ensuring ongoing value for the artist.

The One of One Experience

Another exciting aspect of Sliced.art we quickly realized …there is no longer the need for artists to mint more than 1 edition of an NFT. Instead of minting multiple editions, slice the 1 of 1 NFT into fractions. Collectors can now purchase slices of an NFT to ensure everyone can own a share of that NFT, but the actual NFT represented is still a 1 of 1 NFT and is always available to purchase outright through a public reserve auction on Sliced.art.

An introduction to the product can be found here.

We have also written an article about the benefits of slicing a NFT over creating editions.

Funding:
A large portion of Sliced.art has been completed however there is around 1-3 more months of work that needs to be completed. The grant funds would be used to finish development of the front end as well as cover infrastructure costs for the first 6 months.

What type of background or experience do you have and your team have in building out a project like this:
We have built crunchy.network, lockt.io, wtz.io and assisted many PFP products with their launches (Ziggurats, Ottez, Cyberkidz, Chop Sumoz, etc).

You can also find a mainnet work in progress version of our dApp here:

rh29ylaix5.sliced.art

PLEASE do not slice anything you wish to keep as everything is experimental and for testing purposes.

Social handles of project, if any:
twitter.com/sliced_art

Funding amount being requested:
10,000 XTZ

Tez address to be funded:
tz1hoDWovcZ7aoEGFjyLFoB7ALNG9dQqsEXt

Proposed goals/GPIs to deliver for the requested funding:
We also believe in self sustainability of the Tezos Ecosystem DAO. If funded, we will be sending 2% of all sliced.art XTZ revenue to the Tezos Ecosystem DAO treasury.

Deliverables:

  • Sliced.art Homepage
    • Create a featured slices section
    • Popular seller section
    • Recent sales section
  • FAQ Page
    • Most commonly asked questions and answers
    • Links to Discord, docs, and Twitter to ask more specific questions
  • Explore/Marketplace Page
    • Filter that allows to adjust a price range, total valuation, status, and collection
    • Tabs that allow users to see all NFTs, active sales, buyout auctions and completed sales
  • View Sliced NFT Page
    • Card that allows user to buy slices and perform a buyout auction and ability to vote on the reserve price for the underlying NFT
    • Card that shows the top 5 owners of those slices
    • Card that shows recent activity
5 Likes
2

Interesting project. The idea of owning a fraction of a NFT instead of a edition is something to wrap your head around first. But has potential.

One question: It says a individual can buy out the underlying NFT that was sliced. I don’t understand how that is possible if not all sliced pieces will be burned. If it is “sold” what exactly happens? Does he only get the slices of people that burn it and where does the other money go? Or is he just the imaginary “holder” of the nft?

From a design perspective the website already looks professional.

Overall I think this is innovative idea, a trustworthy team with experience. I’m not sure if 10k Tezos is the fully needed amount. But the Tezos Ecosystem needs more Apps where you can “do things” & this is definitely one. I vote for funding them.

2 Likes
3

Crunchy team always does great work. Tezos ecosystem desperately needs new dApps, with new functionality, with good UI/UX. This is a great proposal, and it needs to be funded. Looks like it missed round 1, my top pick so far for round 2 then

3 Likes
4

If it is “sold” what exactly happens?

Great question. The Medium articles briefly touch on this, granted they do not go into much depth.

If the vaulted NFT(s) are sold at public auction, the winning bidder receives the actual NFT(s) at the close of the auction. Royalties, fees, etc are also paid at this point. The remainder is held in escrow for the slice holders to claim. All slice inflation, reserve price voting, etc stops. Slice holders may now claim their portion of the auction sale, which burns the slices. For instance, supposing an auction was won for 1,000 XTZ and you hold 10% of the slices, you would be able to burn them for 100 xtz (10% of the sale) minus fees and royalties. You are of course free to not burn them or try to sell them on the open market, but once the auction is complete, they can be burned to claim the auction sale proceeds by whoever holds them.

You can also get the vaulted NFT(s) by simply burning 100% of the slices. This is known as rescuing the NFT, and is mainly meant as a means for the person who sliced it to recover it in case they made an error while slicing it. In theory someone could buy up 100% of the slices and get the vaulted NFT that way, tho it is not the reason for this method to exist.

3 Likes
5

Might have misunderstood your “I’m not sure if 10k Tezos is the fully needed amount.” but figured I would clarify some cost thoughts below.

10,000 XTZ is currently $6,700. Average salary for US based devs is $100-80 a hour.

Infrastructure costs are: node, ipfs, web hosting, and indexer hosting

Creating software is INCREDIBILE expensive. $6,700 is actually a dramatically low number and honestly wouldn’t cover salary for everyone. Especially when we plan to keep the product up for a year in hopes it generates revenue to continue building. But Sliced.art is something we believe has a lot of promise and we are willing to finish building it if we can get some help offsetting some of the costs.

Plus, this doesn’t even account for a audit which can be $5,000-$20,000.

Another example is fractional.art. They raised $20m… Fractional Rebrands, Raises $20M to Expand Collective NFT Ownership - Decrypt

2 Likes
6

This is a solid proposal from a proven team, and the project aims to provide something that has been asked for in the ecosystem for years!

It’s also important that we build up this platform now, rather than when the next NFT bull season emerges, so Tezos can hit the ground running with market capture.

2 Likes
7

Great proposal from the Crunchy team

Tezos has a great tezos NFT community (2-3k DAU) and an almost inexistant tezos DeFi community (100-200 DAU) → This project can bridge the 2 communities by finally bringing the NFT community to try the tezos DeFi protocols (lots of very talented DeFi teams with kord, baking bad, crunchy, salsadao, plenty etc)

We know that the blockchain token price is much more linked to its DeFi activity (TVL) than its NFT activity, the release of the slicer project will be a net positive for Tezos as a whole (if XTZ price increases, literally everything is an order of magnitude better - team seeking funding, no need for BDs, CT, etc)

2 Likes