What is partial common ownership?
Partial common ownership (PCO) is a new approach to ownership that aims to create a fairer and more fluid system. It demonstrates that traditional private ownership is not the only way to own things. Someday, it might serve as the basis of broader economies.
Cloudsteward are not absolute owners of the Fairclouds artwork, but nor are they mere ‘renters’. Instead, they are enmeshed in a fluid relationship with the Community that brought the artwork into being. They have the rights to use the artworks while they choose to remain in that relationship; and in so doing, they are rewarded for their good stewardship, earning Cloudsteward Credits that let them deepen their involvement in the project. At the same time, they help generate support for the Communities of the Salinas Grandes and their struggle to preserve their land. And when the time comes, stewards can let the works pass to new stewards, renewing the community of collectors and activists who are involved in Fairclouds.
Here's a detailed explanation of how it works:
- PCO divides a conventional asset into two parts:
- Temporary stewardship: The Cloudsteward acts as a temporary owner, or steward, for a set period.
- Licence Recycling: When the license period ends, the license recycles, going up for renewal or back on sale for a new person to become Steward.
- Incentives for Supporting Fairclouds and the Community: The outgoing steward receives a portion of the License’s next sale price in the form of Cloudsteward Credits that can be applied to purchase another Cloudsteward License. This encourages stewards to attract attention to Fairclouds and the cause of the Salinas Grandes Communities.
- Community benefits: 90% of the revenues from the project go to support the cause of the Salinas Grandes Communities.
- Governance rights: The Salinas Grandes Communities can set guidelines regarding how the drawings should be displayed and used by stewards.
The benefits of PCO include:
- Fairer distribution of asset value increases to the community behind the art (in this case, the Salinas Grandes Communities)
- Incentives for stewards to help the project sustain itself and successfully evolve
- A balance between economic efficiency and community interests
PCO aims to address issues with conventional private art ownership by creating a system that is more flexible, community-oriented, and dynamic.
Onchain Partial Common Ownership
Artists looking to experiment with partial common ownership licences for their work can experiment with a blockchain implementation currently deployed on testnet. Contact us to find out more. Or learn more and experiment at pco.art.
Further resources
Partial Common Ownership of Art
RadicalxChange(s) podcast episode on art & infrastructural experimentation