Buyout Assets

Every fractionalized asset on LiveArt represents shared ownership of a real-world artwork or collectible. But what happens when someone wants to own the entire piece? That’s where the Buyout Mechanism comes in.

It’s a transparent, onchain process that lets any token holder propose to purchase the full asset — while giving all other holders a fair chance to respond.

Here’s how it works:

1. Propose a buyout Any holder can initiate a buyout by declaring a total price for the asset. To make an offer, you’ll need to deposit:

• Stablecoins (representing your bid amount)

• At least 1 token fraction as collateral

The more fractions you contribute, the fewer stablecoins you’ll need to deposit — rewarding those with larger ownership stakes.

2. Community review period (4 days) Once a buyout proposal is made, a 4-day window opens. During this time, other token holders can reject the offer by purchasing all of the proposer’s collateralized fractions at the new implied price. This ensures fair market validation — if the community values the asset higher, the buyout won’t pass.

3. If no full rejection occurs If fewer than 100% of the proposer’s fractions are purchased, the buyout is accepted automatically. The proposer gains full ownership of the real-world asset, and trading for that token ends.

4. Proceeds distributed to all holders All remaining fraction owners automatically redeem their ownership in stablecoins, representing their portion of the total buyout price.