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Policy & Measures for Digitization of an Asset

Tokenization of artwork is to ensure that the principles of the market are applied more reliably, more cultural benefits are possible, and more people enjoy it. We think that it is a true cultural revolution. The cultural revolution through digital technology will change the history of human culture for 6,000 years.


Nevertheless, these goals are not expected to be easily achieved. In order for market principles to work perfectly in the art market, it is necessary to look carefully at policy and strategic measures with the possibility of market failure. To this end, FineArt Blockchain will take the following steps:



First of all, I would like to establish various procedures (Step of Rule) so that the public can buy the token etc. with peace of mind. The general perception of artwork is so negative enough that money laundering and opacity first come to mind. Although the origin of art is

noble, the actual image is not so. We have to change this negative image.


Second, I try to limit the time for various transactions. We try not to allow 24-hour day-today transactions based on the time of a specific area, but to limit the time, thereby preventing misinformation manipulation such as price manipulation.


Third, transparency of information is fundamental. There must be a lot of accurate information on the art deal. Especially, it is more if it is expensive art. Information about the past owner and various history should be provided in a transparent manner on block chain

system.


Fourth, since the FineArt Blockchain business is a kind of ICO, the standard contract form must be confirmed. If we try to trade without a standard contract in advance because it is a field of the high technology and needs more case analysis, we will have to go through a lot of trial and error in the beginning. This will result in disbelief in the business.


Fifth, the art items to be traded at the beginning of the transaction should be strictly limited. It should be analyzed very carefully and meticulously according to the painter and the painting style, and should be selected as the ICO target. We will begin with objectively

precious artworks that are already valued and plan to expand the scope of the subject very carefully.


Sixth, the transaction fee will be reduced to a minimum. Commissions on the off-line giants of arts exchanges are unreasonably high. This is a major factor preventing the activation of the art market. We have embarked on the democratization of the art market as a catch phrase,

and we will do our best to find ways to minimize the cost structure

Seventh, without the competitors or oppressive forces, the market is corrupt. We will place great emphasis on the oppressive forces to carry out the third monitoring function and call it clearing house and actively nurture it.


Eighth, the legal process will be of absolute importance. We will make a decision in consultation with the government authorities thoroughly in the process of setting a legal position.


Ninth, we are going to show a clear stance on the guarantee part in the process of the project. To this end, we will seek all legitimate measures to maintain the prices of artwork at a certain level.


Tenth, the definitive contract is absolutely necessary. Especially, the token and the coin will have various functions in the form of a clear smart contract.


Eleventh, it takes a considerable amount of time until the actual transaction is completed after the contracts related with cryptographic currency are concluded. As a result, there is a time gap between the transaction contract point and the transaction completion point. Especially, if there is severe price fluctuation, there will be not a little conflicts and legal disputes surrounding the serious difference of transaction prices. In the case of super highpriced artworks, even if there is a slight time gap, a great financial loss may occur. Technically, we have to worry about reducing this gap, but in the event of such a problem we have to find ways to distribute excessive profits and losses or to share with stakeholders.


Twelfth, we also have to think about whether we will be able to exchange cash in the actual token trade. Transactions should only be made in cryptographic currencies but should be considered for withdrawal in cash afterward.


Thirteenth, the margin structure should be clear. In order for the art token market to become active, a variety of derivatives must emerge. Therfore, various short salers must exist under a clear margin structure


Fourteenth, the discussion on the structure of the commissions should also be considered. The ICO of a particular artwork itself is the same as an IPO listing a particular company. Therefore, as there are securities companies in the securities market, the digitized art market

must have a broker to analyze and act on these tasks. To do this, it is necessary to agree on the commission structure in advance, and it is necessary to educate them sufficiently before the project can succeed.


Fifteenth, it is constant technical analysis. Consumer trends should be based on AI, and various phenomena should be analyzed from a digital economics standpoint, and various preliminary researches are needed to incorporate new ICT technology. In addition, continuous innovation for information security is inevitable, as hacking organizations armed with advanced technologies will attack more aggressively.


Sixteenth, the Board of Goverenance, like as SEC, is required. It is also necessary to consult with the government for organizational, systematic and fair supervisory agencies.


Seventeenth, a pre-sorting work of documentation and specification to promote everything above 1-16 issues should be preceded.


Finally eighteenth, it is necessary to deeply consider various incentives to make enough compensation for the collectors who release their life-like collections to the open market.