# ⟆ᕈ∈⊂Tre
"where one becomes multitudes"


## Introduction to spectre

The NFT landscape blew up at an exponential rate, from a capitalization of 41M/$ in 2018 to 340M/$ in 2020. Impacting a variety of sectors such as gaming, sports, art, collectibles, metaverses and domain names.

Spectre is a protocol which organizes the wedding of the DeFi space with the NFT sphere by allowing anyone to mint ERC20 tokens backed by NFTs, all permissionlessly, without sign-up or registration.

Spectre thus allows everyone, artists and collectors, to open up the ownership of NFT to the crowds, breaking the barbed wire of the "one and indivisible private property" by the mechanism of ERC20 mining.

Spectre is therefore the simpler, safer, and quickest way to split your NFT into fractions available for all.

## How it works

We have designed spectre in such a way that it is extremely simple for newcomers to play the game of NFT fractionalization.

As shown in the sketch below, the creation of liquidity above an NFT respects a simple and minimalist logic. Spectre smart contracts locks the NFT of your choice and leaves the owners with three options to set up the fractionnalization of its NFT.

**1. NFT locking.** Anyone can mint an NFT or use an existing NFT, lock it, and launch the fractionalisation process.

**2. Spectre issuance.** Secondly, the NFT owner sets the total supply of the associated spectre ERC20. He can also choose to automatically allocate part of this supply to himself and / or to any other set of Ethereum addresses - early supporters, friends, etc. + NAME AND SYMBOL.

**3. Supply channeling.** Spectre is integrated with Balancer V2 to organise the minting of the supply. This means that once the parameters of the issuance are set the user will be able to bootstrap the liquidity pool by adding the amount of ETH he wants as collateral for his ERC20 tokens. Our use of Balancer will thus allow anyone to play the game of fractionnal art with low capital requirements.


## Target Users

The few existing platforms on the ecosystem of fractionnal art are mainly aimed at warned crypto people (NFTx & NIFTEX) and those Dapp mainly splits bluechip NFTs such as cryptopunk, kryptokitties gen-0, cryptocubes and so on. It's NFTs trading for insiders.

Our purpose is radically different because we want to make fractional art ownership an artistic experience in its own right. We want to offer everyone the opportunity - hence the choice of a permissionless approach - to play with the idea of fractionnal property.

Indeed, fractional art offers several advantages :

1- The shift from private, single and exclusive ownership, to shared ownership allows to build communities around the NFT itself. A token representing a share of a work allows the conversational gathering of all owners, as we saw everyday on crypto twitter with the case of the [B20 token](https://b20.whalestreet.xyz/). But fractional art ownership should not be reserved to a handful of artists already well appointed with the art market. It should be open to all and allow the gathering of the micro-community that always gravitates around each artist. Outside the blueship sphere there are many artists whose works remain affordable but too expensive for the majority. Indeed not everyone can afford to spend 1 or 2 ETH on a NFT. Even though, the act of buying is a way to tell the artist that we support him and that we like his work. For this reason the logic of the one and exclusive property must be overcome because it prevents us from supporting some of the artists we like.

2- In traditional art the owner of an artwork does what he wants with the artwork. The fractional ownership of a work of art, on the other hand, makes it possible to gather the "fans" of the work around discussions but also around decision making. Indeed, as each work is indexed by tokens, it is up to the holders of these tokens to decide what happens to the artwork (resale, exhibition, [burning](https://twitter.com/0x_b1/status/1360641935048912908), etc...). It is easy to understand that fractional art make possible to transform the work of art into a true organizational object in its own right. We plan to address this issue over the long term.

3- One of the key features of fractional art is also to offer some of the typical ICO patterns at the scale of unique pieces. Indeed, the fractionalization of a NFT allows to organize a thoughtful redistribution of the tokens. Allowing the NFT’s owner to privilege his early supporters, his partners or his/her friends in the tokens allocations. This inoculation of ICO patterns into the NFT itself is not only a way to extend DeFi to the scale of sensitive work, it is also the opportunity for the artist or the collector to not be completely separated from a work that he/she love and that he/she do not want to totally lose in the sale. Thus, instead of selling the entirety of a given work, spectre allows an artist to sell e.g. 80% of their NFT’s tokens and keep the rest, for sentimental reasons or because one thinks that the work will be a success that will not be reflected in the price of the first sale.

4- Developers will also find an interest in spectre cause the creation of liquidity on top of an NFT opens a whole new playground for DeFi. Allowing anyone to use the liquidity attached to any NFT as collateral for any other kind of asset. For example, if you wanted to create a stablecoin whose collateral is the work of a particular artist, you could use spectre to do it.

5- For trader or investor indexing / smart pooling of liquid nfts enable a curatorial function of the market to be expressed fluidly.

## Specter protocols

Spectre's protocol relies on 5 different contract:

- Vault. This contract owns and locks the spectralized NFTs.
- Broker. This contract handles the initial distribution of spectre ERC20s.
- Clearing House. This contract the buyout process of spectralized NFT.
- Factory. This contract handles the initial spectralization of NFTs.

## Tokeneconomics

The main feature provided by spectre is to deterministically tie an ERC20 token - henceforth called a spectre - to a locked NFT. The supply of this spectre is set at locking time by the NFT owner.

Moreover, spectre's protocol aims to solve two main problems that characterize the crypto art market.

The auction models used to determine the market price of an artwork actually prohibit the participation of the smallest economic actors unable to take place in an ascending auction which respect a linear function where «  the highest bidder wins ». This model is extremely rigid and excluding cause it limits the number of strategic participants to a small sociological sphere of individuals with high economic capital.

With spectre we create a fully liquid market that allows anyone to participate.

For the same reason the art market is not able to determine the « true market value » of an artwork because they limit the formation of demand to sociological microcosms able to take place in traditional auction models which are inherently unfair. Denying by this way the economic power that the aggregation of a multitude of small economic agents can constitute.

By opening the structuring of the demand to the contribution of the multitude Spectre offers a whole new system for artworks valuation more respectful of the interests of all art lovers.

## Spectre team

Spectre is a decentralized emanation of the [Distributed Gallery](https://www.distributedgallery.com/), a collective of artists and engineers who has been creating crypto-artworks since 2017 on the Ethereum blockchain.

## Near-Term Roadmap


## Conclusion

We are driven by the desire of turning artworks into an active multitude. The crypto-art movement is still in its infancy and has already indicated tracks going in this direction with experimentations such as NFTx, B20, and NIFTEX.

We now wish to radicalize this desire to move from a single and exclusive property to a collective property by offering a Dapp that will allow any artist or collector to play with thoses features. Features that for practical, legal and technological reasons were until recently reserved to a small elite.

Artworks have always been powerful vectors of collectives structuration and we now see that the internet of money could make us pass from the status of consumer of artworks to a world where artworks are, in their inner form, the organizational layer of tomorrow's collectives.