- The NFT collection will be getting its own price index.
- Chainlink’s oracle will feed recent market data into an algorithm to get a price estimate for NFTs in the collection.
- Holders of the NFT collection will have to decide between owning the NFT or the physical artwork.
World-famous artist Damien Hirst’s first NFT collection, The Currency’, is getting its own price index, thanks to decentralised blockchain oracle network Chainlink.
Launched in July 2021, The Currency was released in partnership with tech company HENI, and is stored on the Palm blockchain.
Exploring the boundaries between currency and art, the collection includes 10,000 NFTs that correspond to 10,000 physical artworks that are stored in a secured vault in the UK. The creation of the physical artwork began in 2016. With slight variations, each hand-painted piece features hundreds of colourful dots.
While most NFT collections are valued based on their floor prices, the value of Hirst’s collection will be based on a price estimate Chainlink gets from feeding recent market data into an algorithm, so that smart contracts can fetch the current value for The Currency at any given time.
According to HENI, the oracle is “a middleware solution” for bridging “The Currency Price Index data on-chain, so it can then be used by blockchain applications to facilitate functions like payments and lending.” The company’s decision to use Chainlink was due to its reputation as “the most time-tested and widely adopted decentralized oracle network in the industry.”
(1/3) HENI is delighted to be the first NFT project to use @Chainlink oracles for pricing @hirst_official‘s #TheCurrency NFTs. HENI is using the oracles on Ethereum mainnet to provide up-to-date pricing values for the collection to DeFi.— HENI (@HENIGroup) January 18, 2022
Head to https://t.co/tWSakUQ8H4!
HENI hopes that The Currency’s new price index will make the connection between digital art and DeFi more obvious. Founder of HENI, Joe Hage, expects holders of The Currency to see it as a store of wealth, use it as a currency, or borrow against its prices.
Collectors of The Currency are given a choice to hold the token or exchange it for the physical artwork. Whichever one picks, its corresponding piece will get burned.
At the time of the new price index announcement, 492 NFTs have been burned in exchange for a physical painting. The deadline to decide closes on July 27, 2022.
Damien Hirst’s second NFT collection, Great Expectations, was airdropped to holders of The Currency in November 2021. The collection is based on the artwork the artist created for Drake’s album cover, Certified Lover Boy, and was made using dots taken from The Currency.
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