By understanding how the Latency Problem works, and applying some of the principals developed along the way it is possible to lay the foundations for a free-market solution that works to facilitate the Latent Value emergence process, rather than encumber it, as resales legislation and contracts try to do.
The pilot #7/11 Project consists of an opportunity to buy percentage shares in Limited Edition print numbers 7 to 11 (of 11) from the ‘Control, Alt, Delete’ and ‘Sonnets’ series of Artworks.
The minimum interest is 1% and the maximum is 45% per Artwork. The value of each print is $2450, so a 1% stake would cost $24.50, and a maximum 45% would cost $1102.50.
When the prints are eventually sold, 45% of the sale price is returned to the co-owner, and 55% to the Artist.
Along with other benefits, a co-owner may also keep the physical Artwork in their possession for a portion of the year relative to their percentage stake holding.
The #7/11 Project differs from resales Legislation and contracts, in maintaining Artist ownership of the majority of the Artwork, with transparent terms for co-owners / investors. It differs also, from the EADC, by offering an affordable, tangible interest in an existing Artwork.
One of the key aspects of this approach is that the core concept is extendable and adaptable, for example, an Artist might auction their percentages rather than fix them to a valuation. They might also fix a date in the future for the Artwork to be sold, or have an open or floating term. And it is this adaptability and extendability that I would like to go into in more detail in Part 10 by looking at how the #7/11 Project has the potential to turn a problem into an opportunity.