Codex is a decentralized registry for unique assets like art, fine wines, watches and more. Use cryptocurrency to buy $6 billion of art and collectibles today, and plug into a growing ecosystem of third-party services.
Codex Protocol is a decentralized registry for unique assets backed by an industry consortium representing 5,000 auction houses. Codex is initially focused on the $2 trillion Art & Collectibles asset class (art, wine, jewelry, watches, collectible cars, etc.), where the need for a registry is greatest because no centralized title registry exists. For unique assets, provenance (the identity, chain of ownership, and other metadata about an item) is fundamental to value. Verifying this critical information is a constant challenge that creates costly friction in the ecosystem.
The Codex Protocol registry solves this problem by recording, verifying, and securely storing important information about each item. With this information, Codex users can easily access a variety of applications and services like asset-backed lending, insurance, fractional ownership, bidding, escrow and more. The first application lets you use cryptocurrency to buy over $6 Billion of merchandise from auction houses. Many other applications have already been announced including a bidding application, through which the first purchase was of a CryptoKitty for the highest price ever achieved.
With a widely adopted registry, we expect lower transaction costs and less fraud could grow annual transaction value by hundreds of billions of dollars and simplified financial products like lending and fractionalization could increase the value of the asset class by over $1 trillion. In doing so, it will benefit existing market stakeholders and intermediaries, not disrupt them.
The A&C industry is eager for a registry, and the consortium believes one is finally possible because it can be decentralized. Centralized efforts have failed in the past because collectors are unwilling to trust a central entity with information about their valuable possessions and intermediaries are unwilling to risk disintermediation. The advent of the blockchain enables a decentralized solution that stakeholders will accept.
Of course, a registry only works insofar as it is adopted as a standard. To that end, we have established a consortium of leading online marketplaces, software providers and auction houses with operations spanning over 50 countries who have agreed to support Codex. They support Codex as an open and decentralized protocol that anyone can integrate with. The consortium will help to accelerate the adoption of the registry and ease its path to acceptance as the standard.
Finally, we introduce a native token, CodexCoin (CODX). Codex uses a native token for several purposes. First, to access and pay fees to the registry to create, amend and transfer records. The token is further used to align incentives within the Codex ecosystem: First, the token enables rewards to validators like auction houses and appraisers who vouch for items in Codex. Second, it gives applications discounts for holding CodexCoin over a period of time, which ensures affordability and ensures applications will engage in governance. Third, it ensures enforcement of proper behavior by validators and applications by requiring them to stake. Finally, it provides a mechanism for the devolution of governance to end-users over time.
Soon after Codex is launched, we expect widespread utility and usage. As the A&C market passes through auction, the asset registry will increasingly become a standard on which further applications and financial products are built.
Together, we can help unlock the value of unique assets.
Phase 1: Pre-launch (Completed)
● Technical development of Codex Protocol, Biddable and Codex Viewer.
● Integration of Biddable into the software and technology providers within the consortium.
● Recruitment and engagement of third-party application developers.
Phase 2: Launch
● Marketing campaign to educate and build awareness among the following bidder personas:
○ Cryptoholders regarding the benefits of diversifying into art and collectibles and the ease of doing so through
○ Fiat bidders, especially those in Asia, who are currently excluded from western auctions but can access them
using cryptocurrencies and Biddable
○ Existing fiat bidders, both online and offline, who will be able to bid more easily at auctions using Biddable.
● Release of Codex Protocol on mainnet and distribution of CodexCoin
Phase 3: Post-launch
Codex Protocol will pursue its mission as previously described (“Organization and Governance”). We expect that in each vertical,
the consortium will first expand, then new applications will be developed (often with community fund sponsorship), after which
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marketing will likely occur to end-users for the new use-case. Marketing will include working closely with core partners in the art
ecosystem, industry bodies and international organisations as well as art business events and conferences.
We are confident in our strategy and ability to execute the pre-launch and launch plan because the team has extensive experience
launching products and increasing adoption in the art and collectibles market, including:
● Managing multi-million dollar marketing budgets in the A&C market.
● Managing inside sales teams soliciting auction houses and galleries through “predictable revenue” strategies.
● Launching and promoting scaled software products for the art and collectibles space.
Based on this experience, we are confident that our sales and marketing strategy and campaigns will be effective in driving
adoption of the protocol at launch. Proceeds from the ICO will be used as follows: 25% taxes; 15% sales and business
development; 20% marketing; 25% engineering and 15% operational expenses.