All.Art is an upcoming Solana project offering a new approach to non-fungible token (NFT) sales and licensing. All.Art introduces two NFT features: automated market makers (AMM) for NFTs, and tiered licensing for NFT art. All.Art uses its AART token for transactions.
The NFT-PRO Standard
The NFT-PRO standard introduces licensing to NFT transactions. Simply put, All.Art will allow collectors to buy different licenses for the same NFTs, such as a license to display an NFT as a social media avatar.
The standard is broken into three layers:
- Layer 1 is the core data layer for the NFT, with all data stored on-chain. This layer is mandatory, and License Ownership Rights Tokens can be minted here or in Layer 2.
- Layer 2 is an optional licensing layer. NFT creators can include additional licensing terms in this layer and link them back to Layer 1 (and the NFT itself).
- Layer 3 is an optional transaction layer, where the market for the NFT is created.
All.Art explains, "If the creator wants to represent an item in the form of an NFT, Layer 1 metadata is needed. If an NFT is for sale, a contract of a sale or license transfer is necessary, thus Layer 2 is needed. And if sales are happening on-chain through automated market making or auctions, Layer 3 is needed."
Decentralized NFT Swap Pools
NFT Swap Pools are intended to boost liquidity. All.Art uses what it calls a Capped Automated Market Maker (cAMM), based on the same formula used by UniSwap.
When an artist creates an NFT using the All.Art protocol, All.Art automatically generates a cAMM for that NFT. All.Art also generated License Ownership Rights Tokens (LORTs). These are not fractions of an NFT, but rather licenses for that NFT. During this process, the artist receives 50 LORTs, and 100 LORTs are deposited into the cAMM.
When someone buys an NFT using AART tokens, he or she receives the license ownership tokens. The artist can then swap his or her LORTs into the cAMM liquidity pool in exchange for the AARTs, which can be exchanged for real money.
LORTs are also exchangeable for each other, since they are collateralized in the same unit of exchange.
AART tokens will be available to the public later this year, but whether NFT creators and collectors will adopt the new system (or even understand it) remains to be seen.