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Core Principles of the Economic Model

The ArtStar RWA project’s community economic model relies on global mainstream public chains and participant engagement to achieve sustainable value growth. The ART-RWA Token is the carrier of artwork RWA assets (e.g., tokenizing a Qi Baishi painting as ART-QBS-P1). Through multiple sources such as financial returns, staking rewards, trading fee sharing, token appreciation, and ecosystem value creation, it operates with no fewer than ten economic models to ensure efficient, long-term operation. ArtStar will build an innovative financial ecosystem integrated with DeFi, fostering a win–win structure for participants, supporting income generation, investment returns, and community rewards, and ensuring dynamic equilibrium of the ecosystem economy.

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ART-RWA Token Deflationary Pricing and Appreciation

As a token anchored to physical assets of cultural relics and artworks, the ART-RWA Token is an investment instrument pegged to physical art assets. It differs fundamentally from virtual token projects lacking real asset backing and offers real-world credibility and significant potential for value appreciation. (For details, see the official website: http://www.artstarex.com) ArtStar’s primary function is to tokenize physical art assets. Each token represents partial ownership of the asset. Physical assets are injected in a deflationary manner, creating potential appreciation space for token issuance.

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RWA Token Model

  • Total supply: 10,000,000
  • Name/Symbol: flexible at deployment (e.g., ART-RWA to satisfy artwork identification needs)
  • Initial price: set at deployment or sale launch, in USDT per token, with precise calibration to ensure smooth subsequent trading
  • Reserved proportion: 20% of total supply (2,000,000) reserved for DEX liquidity pools to maintain pair operation and stability

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Physical Asset Deflation Model

Let A be the total USD value of the asset (1:1 with digital dollars).
Let N be the total number of tokens issued for the asset.
Let T be the value of one token.
Thus, the value of one token is given by:
T=ANT = \frac{A}{N} This formula can be used to define the price of each token during the initial exchange issuance and subsequent market trading. For example, if the total value of the physical assets (e.g., “ART series and related assets”) is USD 1.15 billion, with deflationary pricing set at USD 1.0 billion to maintain potential appreciation space, and 1 billion ArtStar tokens are issued: After deflation of the physical assets, pricing at T = 1.00 USDT per token leaves a 15% appreciation space per token at issuance.

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Physical Asset Exit and ArtStar Buyback-and-Burn Model

Given the market appreciation characteristics of cultural relics and artworks and the high likelihood of acquisition by government entities or private collectors, ArtStar RWA allows a portion of physical assets to exit upon appreciation, generating short-term returns for ArtStar users.
  • Each year, physical assets exiting RWA must not exceed 10% of the original staked total, with cumulative totals not exceeding 30%. Proposed asset exits must be publicly disclosed to the community.
  • Exit methods include auction and trading of the targeted physical assets.
  • Physical assets eligible for exit must have appreciated by more than 30%. Prospective purchasers submit applications to the ArtStar physical asset management entity; upon confirmation, the exit procedure may begin.
  • After transaction completion, the purchaser pays the funds (USDT) into the ArtStar supervision account.
  • The ArtStar physical asset management entity repurchases ArtStar on exchanges and other public markets at the original physical asset anchor price, and centrally burns the repurchased tokens.
  • 40% of the asset appreciation proceeds are injected into the ArtStar incentive fund; 60% is used to purchase ArtStar on exchanges and other public markets and reward ArtStar holders/users. The reward scheme is proposed by the ArtStar management team and decided via DAO voting.

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ArtStar Ecosystem Contribution Incentive Model

For activities undertaken by the ArtStar community—such as lending physical assets of cultural relics and artworks, creating physical and digital derivatives (including NFTs), metaverse exhibitions (online/offline), GameFi, film/short series, and other innovative projects around physical assets and ArtStar financial products—the revenue generated is distributed according to principles that allocate a proportion to community contributors and a proportion to the ArtStar incentive fund.
  • Ecosystem project initiators submit feasibility proposals to the community. After preliminary approval by the ArtStar management team, the proposal goes to DAO community voting to decide whether to launch. Prior to voting, the initiator must stake and lock 500,000 ArtStar for project risk management.
  • In principle, if the community decision does not pass, the initiator’s staked risk funds are unlocked. For ecosystem projects approved by the DAO, the initiator’s staked assets remain locked; if the project fails to launch on schedule, the staked assets are donated to the ArtStar incentive fund.
  • After an ecosystem project goes live, 10% of revenue goes to the ArtStar incentive fund and 90% to the project initiator. Project progress and financials are disclosed to the community.
Responsibilities of the ArtStar Management Team and DAO Community:
  • Project financials and progress are disclosed to the community and adjusted per decisions.
  • Incentive schemes, fund flows, and donations are transparently disclosed according to DAO decisions.