@PERMANENCE DAO/GOV-PROXY

Dear Permanence DAO,

Thank you for your detailed feedback and for taking the time to outline the concerns shared by your members. We deeply value the governance process, and your reflections help us strengthen both our communication and our proposal.

Thank you also for acknowledging the depth of preparation behind our proposal. We've been studying the digital asset market since its emergence and consulted both global Web3 leaders and key voices within Polkadot’s art-related community before submitting — specifically to verify the need for this program and understand potential ecosystem support.

That said, we also acknowledge that the enthusiasm and support expressed before submission has not fully translated into active voting or engagement — this, too, is a valuable lesson for us.)

While we respect your Nay vote at this stage, we’d like to take this opportunity to address the key themes raised across your members’ comments — we’ve carefully reviewed each of them.

Strategic Alignment with Polkadot & the NFT Narrative

We understand the skepticism around the NFT market — especially given recent downturns in transaction volume. However, our initiative is not built around the outdated "NFT 1.0" model. The Artists & Collectors Polkadot Hub focuses on NFT 2.0 — a new approach that integrates real-world assets, AI art, utility tokens, and cultural engagement models, grounded in tangible use cases, academic infrastructure, and measurable KPIs.
Rather than chasing speculative hype, we are responding to the strategic direction already endorsed by Polkadot's ecosystem itself. For example:

• The 2024 Polkadot End-of-Year Report highlights performance leadership in NFT minting speed, transaction throughput, and daily active users.
• The NFTMosaic initiative from Unique Network — whom we consulted with in building this proposal — signals a renewed institutional focus on next-gen digital ownership tools within the Polkadot ecosystem.

In short, our project is not chasing the past, but actively helping shape the future of creative digital assets on Polkadot.

Market Size vs. Strategic Potential

The cited $1.7 trillion figure does not refer to the NFT market in isolation, but rather to two separate but related figures:

• The global annual turnover of the physical creative industries—including art, music, fashion, design, film, and more. (This figure ranges from $1.7 to $2.6 trillion, depending on whether sectors like apparel are included.)
• The total value of global art and collectibles, based on sources like Deloitte and ArtTactic. While estimates vary, Fuelarts places this figure at approximately $3 trillion, including artworks held in museum collections.

In both cases, these numbers represent the Potentially Addressable Market (PAM) — assets and industries that are increasingly expected to receive digital counterparts as they transition into Web3. Our program is designed to onboard creators and collectors from these industries into Polkadot’s ecosystem through practical education, on-chain experimentation, and brand collaborations.

We believe Polkadot, with its unmatched interoperability, scalability, and security, has the potential to lead this transition — and our proposal seeks to bridge the infrastructure that already exists with real-world users who haven’t yet arrived.

Budget Structure and ROI Concerns

We acknowledge the concern around budget allocation. However, the majority of the funding is not for management overhead but for the actual delivery of weekly educational activities, live mentorship, hackathons, and on-chain prototype development across both artist and collector tracks.

This includes:

• A university-hosted physical program for 12 artists (hands-on mentoring)
• A global online program for artists and collectors (scalable outreach)
• Weekly live workshops, DAO education, and technical support
• The on-chain revenue-sharing mechanism, where a portion of future project sales is automatically routed back to the Treasury

We're not simply educating — we're building tools, launching projects, and generating on-chain activity that can be measured and audited.

Ecosystem Engagement & Mentor Selection

The mentors involved are established names with clear, public track records — spanning former curators of the Venice Biennale to ex-Christie’s and Tezos leaders. These are practitioners, not figureheads. That said, we hear your concern regarding visibility within the Polkadot community.

That’s why we’re coordinating with Unique Network (Aleksandar, Charu) to ensure better alignment, and we’re planning an AMA session to open the floor for further community Q&A. We'll also consider initiating a smaller pilot version of the program through a Roots grant or other channel if that would help ease implementation concerns.

Value to the Broader Community

Although Miami is a key offline location, 50% of the program is conducted online — specifically designed to benefit global creators and collectors, not just a local cohort. All participants are required to open a Polkadot wallet, ensuring on-chain engagement from day one. The long-term vision is to replicate this model across other regions and communities — including those already active on Polkadot today.

We deeply appreciate your concerns and suggestions and remain open to dialogue and collaboration — whether through mentorship, phased implementation, or adapting the structure further in response to ecosystem needs.
Thank you again for your thoughtful engagement. We'll share AMA details shortly and would be honored to continue this conversation in a more interactive format.

Denis Belkevich, Fuelarts
/ Scott Spiegel, BitBasel
// Co-Authors, Fuelarts x BitBasel Proposal

@LuckyFridayGovProxy 

Thank you, Lucky Friday, for your vote and this update. Following your suggestion, we've reached out via the OpenGov Public Forum on Telegram and tagged Phunky with our referendum number to request full feedback. Once we receive and review your comments, we’ll respond here accordingly.

Looking forward to continuing the dialogue and learning from your insights.

Best, Denis & Scott // Fuelarts x BitBasel