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Particle Protocol Contract Interaction Documentation

Ken
  • Updated

Overview

The Particle 1.0 Protocol consists of 3 main components (all audited by Quantstamp) – the Core Token contract, the Minter Contract, and the Buyout Contract (marketplace functionality is built on top of Open Sea’s Seaport Protocol). With these components, we are able to achieve:

  1. An infrastructure that allows for Art to be particalized into a unique series of NFTs called Particles, representing ownership in the underlying art.
  2. A decentralized marketplace that allows for the exchange of the aforementioned particles.
  3. For anyone who would like to purchase the underlying works of art, to be able to make an offer to the co-ownership, and for that co-ownership to independently and transparently decide (on-chain) whether or not to accept that offer (sell the art or not).

 

Interactions:

  1. KYC
  2. Particalization
  3. Allow-listing / Wallet address approval
  4. Particle Collections (Core and Minter Contracts)
  5. Particle Marketplace (Seaport Protocol)
  6. Royalties
  7. Artwork Buyout (Buyout Contract)
  8. Decision Making / Governance Structure (Buyout Contract and on-chain voting)

Preface

In order to interact with Particle Protocol on the Platform, you will need:

  • A self-custody wallet such as MetaMask, Rabby, Spot, Coinbase Wallet, Trust Wallet. 
  • A verifiable email address

1. KYC

  • KYC needed to access all core functionalities of the Particle Protocol
  • KYC undertaken by a 3rd party called Onfido.
  • No KYC data is stored by Particle.
  • All wallets connected to the protocol will be registered with Particle
  • Once KYC is completed, your account with Particle will be marked as verified
  • The protocol will always check back at this centralized database to make sure users are KYC’d

2. Particalization

3. Allow-Listing / Wallet address approval

  • When a sale of Particles is happening, there are different phases at which people can purchase particles.
  • These phases depend on different factors, which may vary, and include but are not limited to:
    • KYC’d accounts
    • Ownership of the Particle Community’s first acquisition Banksy’s Love is in the Air
    • Ownership of Particles of other works in the collection
    • Ownership of NFT collections from preferred partners
    • Ownership of VIP pre-sale passes

4. Particle Collections (Core and Minting contracts)

  • These contracts are based on ArtBlocks design (open sourced)
    • The Core ERC-721 Contract houses all tokens related to all the works of art that have been particalized.
    • The Minter contract handles the minting interaction to create those tokens on the Core contract.
  • All contracts have bee audited by Quanstamp
  • The metadata is hosted on AWS as the buyout mechanism requires a metadata change in case an artwork is sold.
  • Particles are minted randomly: token ids are minted sequentially, but the correspondence between token id and artwork coordinates is assigned at random.

5. Particle Marketplace

  • Built on top of Open Sea’s Seaport Protocol
  • Transact in USDC (ETH support to be added in the future)
  • 0 fees on Particle Marketplace
  • Features:
    • List for sale
    • Cancel listing
    • Buy
  • Additional features will be added follow the release of 1.0

6. Royalties

  • Royalties collected for every transaction that occurs on the secondary market and are split in the following ways
    • 1/3: Particle
    • 1/3: Artist
    • 1/3: Particle Foundation 
  • Permissioned collection
    • The core contract implements OpenSea’s marketplace restriction (operator filter registry)
    • This restricts any marketplaces that do not enforce royalties from operating on the Particle collection
    • Currently both OpenSea and Blur enforce royalties for contracts implementing the operator filter registry (Particle contracts included)

7. Artwork Buyout

  • We have a built a first of its kind Buyout functionality
  • Built for the co-ownership to have complete autonomy over the Art – from Particle or any other party. Only the token holders can decide whether to accept a bid and sell or not.
  • In order to participate in co-ownership, the user must have completed KYC
  • All offers need to come from a KYC’d account. Buyout offers can be made in any currency, starting with ETH and USDC.
  • Funds are locked in smart contract for a period of 3 weeks during which voting occurs
    • 1 week pre voting, to alert the community of the incoming vote
    • 2 weeks of voting
    • Possible 3 day extension if minimum participation is reached close to the end of the voting period
  • A bid is canceled, funds are returned and voting time resets if:
    • A new, higher offer is put through
  • There is no way for the bidder to cancel a bid once placed.
  • All voting happens on-chain: Co-owners of the artwork (collection token holders who have completed KYC) can vote interacting with the Buyout contract through the particle web application.
  • All particle collectors need to register to vote (vote delegation): Based on OpenZeppelin’s governance design, delegation is needed in order to participate in governance (buyout mechanism in Particle’s case). Vote delegation (“Register to vote” in the Particle web application) prevents new token owners from voting on existing bids, by requiring delegation to have happened before the bid was placed. In other words, a user can only vote on a bid if they delegated their votes (to themselves or others) before the bid was placed.

8. Decision Making / Governance Structure

  • 1 Particle = 1 vote, the more particles you own, the more votes you have.
  • Mminimum amount of participating votes is 10% and majority is 51%.
    • E.g. If an artwork is particleized into 100 particles, 10 votes are needed to have reached minimum participation, and at least 6 of those votes have to vote YES on accepting the bid for it to be accepted and the sale to execute.

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