SIZELESS TWIN

To secondary distribution stakeholders,

All works sold at SIZELESS TWIN will have their provenance recorded on blockchain infrastructure Startrail, and royalty fees will be distributed to the creator/artist at secondary distribution. Startrail aims to be the new foundation for appreciating and inheriting creative products, which will lead to the further development of the creative industry as a whole. This page explains how to participate in Startrail and implement the royalty fee function.

Eligible persons

Art related stakeholders: Art auctions, art e-commerce,
Other secondary distribution stakeholders: online flea market services, internet auctions, online store services, etc.
Offline businesses are also eligible if they have an online management system.

1.Overview

Secondary distributors registered as official secondary distributors on Startrail can execute contracts and set royalty fee terms for the works sold at the exhibition. You can transfer the royalty fee and also have access to the contract and information recorded on Startrail (a blockchain network that guarantees and inherits the authenticity of art), as well as add provenance information.

2.Background

Since the birth of the Internet, the secondary distribution market has expanded rapidly as a result of more efficient matching between sellers and buyers. However, many issues still remain in secondary distribution, such as security, the succession of rights and contracts, and brand protection.

Particularly in the art market, where it is difficult to manage the distribution of works, the true value of a work is determined by collectors, galleries, critics, curators, and museums, who add their interpretation to the expression of the work after it leaves the artist's hands. For example, Jackson Pollock's "Number 17A," which sold for $22.6 billion in 2015, sold for $1.5 million as of 1948. However, there was no way to holistically manage information on works that sometimes circulated through time and across borders, while respecting the privacy of their owners.
Blockchain technology, and thus NFT, is expected to be the technology that can solve these problems.

3.What is Startrail?

Startrail is a blockchain infrastructure that records information related to authenticity assurance and value transfer of artworks. It consists of multiple smart contracts that allow for the issuance of NFTs (blockchain certificates) and the setting of work terms and conditions for the distribution and use of works. Moreover, Startrail will gradually transition to a multi-entity operation; based on distributed storage and governance tokens to serve the public good in a sustainable way.

4.Outline of Royalty Fee System

Services connected to Startrail can interoperate with each other as well as operate Startrail’s functions; this is because Startrail's suite of smart contracts is deployed on a public blockchain. In terms of royalty fees, the contractual relationship between the creator and the owner is automatically renewed through a secondary distributor, and a portion of the sale price is remitted to the creator. Specifically speaking, the transfer of the NFT (blockchain certificate) from the seller to the buyer triggers the process of royalty payment to the creator, based on the price of the secondary distribution service and the royalty rate on Startrail.

5.How to install Startrail API

Secondary distribution services need to connect to Startrail to use the royalty fee function.
By connecting with Startrail via the Startrail API, it is possible to obtain information on the blockchain and associated metadata regarding NFTs issued and managed by Startrail.

By requesting this API, you can obtain information about the owner and artist of the work, as well as information about royalty fee.
Below is API for obtaining owner and artist information that exists on the blockchain.

https://api.startrail.io/api/v1/srr?tokenId=889425280458

This request returns the following results (excerpt).

[ { "id": "889425280458", ... "issuer": { "id":"0x3a262075cD1E394afb70bB6Ae6DfEA9667346248", "walletAddress":"0x3a262075cD1E394afb70bB6Ae6DfEA9667346248", "owners": [ "0xF4D79f843eCd83C7292A73Fe2079738d5d86D86c" ,"0x16E3970970a62Dfc47061183eD978FC49723FCcd" ,... ], "artist": { "id": "0x6D2600Bf66572F617564a35090AF83EDEc1C52e0", "walletAddress": "0x6D2600Bf66572F617564a35090AF83EDEc1C52e0", "owners": [ "0x007b2aFBAfe582062AAd57351A4444cB207f1876", "0x1027485dD6119F18300757bd266b106df40bfD9e" ], "originalName":"アンリアレイジ", "englishName":"ANREALAGE", "userType":"artist" }, ... } ]

In addition, the metadata associated with the work information can be obtained as follows.

https://api.startrail.io/api/v1/srr/metadata/889425280458.json

This request returns the following results (excerpt).

{ "$schema": "https://api.startrail.io/api/v1/schema/registry-record-metadata.v2.0.schema.json", "$schemaIntegrity": "sha256-f63238ce3b8c4f8a99fb453d716d5451f75508c2e403a58af0412014187e7a61", "attachmentFiles": [], "contractTerms": { "fileURL":"https://static-files.startrail.io/srr-contract-terms/0x3a262075cD1E394afb70bB6Ae6DfEA9667346248/220304_Contract%20Terms_NFT_sizeless%20twin_Anrealage.pdf", "royaltyRate":10 }, ... "external_url": "https://cert.startbahn.io/srr/889425280458", "image": "https://static-files.startrail.io/srr-images/0x3a262075cD1E394afb70bB6Ae6DfEA9667346248/DIMENSION19_metaverse.png", "isDigital": true, ... }

Currently, the use of royalty fee rate depends on marketplaces.
Therefore, NFT White Paper (draft) compiled on March 30, 2022 by the NFT Policy Study PT of the LDP's Headquarters for the Promotion of Digital Society (PT Chair Masaaki Taira)states as follows;

Therefore, NFT White Paper (draft) compiled on March 30, 2022 by the NFT Policy Study PT of the LDP's Headquarters for the Promotion of Digital Society (PT Chair Masaaki Taira)states as follows;

Then, they suggest as follows;

To achieve cross-sectional royalty collection, certain efforts should be made by working with industry associations to encourage the coordination of information on royalty settings among marketplaces and proposing standards that enable the setting of such information (e.g., EIP-2571: Creators' Royalty Token standard10 and ERC-2981: NFT Royalty Standard11).

Startrail intends to promote the provision of a more user-friendly system for industry associations and implement a design that does not leave out any reduction payments to artists, both domestically and internationally.

More details and updates will be posted on the Startrail website

If you are a secondary distributor and would like to participate, please contact:Alisa Watanabe