NFT Fund would be a smart contract with token holders being able to vote on which NFTs the fund would buy/sell and use sale proceeds to either buying new art or cash out proceeds of sales. It would be a way to diversify art investments and be able to be part of larger NFT buys.
The most complex point would be to be able to get a fair entry and exit value at any point, but a solution for a start could be:
- Entry: cash reserves + art valuation from oracle pools
- Exit: cash reserves + a % of art valuation from oracle pools that would be low at the beginning and increasing over time as the fund gets bigger and easier to value.
The idea is not short term profit, but to have long term holders that are in the fund for the idea of helping artists on Ergo and make the ecosystem more attractive to artists.
It could also help artists to get a minimum bid after proposal to the Fund website even before submitting it to the Auction House and help them decide that they will issue the artwork on Ergo as they are sure that their minimum price will be met.
Even Ergo Foundation could be part of it and very probably also benefit from it.
The dApp would also be useful for a ton of other applications involving voting around grouped investing for better diversification. But art and NFT, because of its non-fungibility, is a huge application, as it gives a way for smaller investors to be part in otherwise inacessible art or anything big and non fungible.