The House of Electronic Arts (HEK) is a Basel-based museum for contemporary art in the digital realm. Since 2022, the cultural center has been working with non-fungible tokens (NFTs) and creating a digital community. An interview.
By introducing a tokenized membership, the museum has extended its community and exhibition spaces into the metaverse. HEK aims to challenge the usual hierarchies within art institutions by relying on the methodology of community management. This approach opens up exciting possibilities. All participants can actively contribute, express their opinions, and have a direct impact on the HEK's programming. In an interview with CVJ.CH, Ugo Pecoraio, Head of Communications at the museum, delves deeper into the ideas and goals behind this initiative and explores the challenges and successes that have emerged along this unconventional path.
How did the first discussions about launching an NFT collection come about?
For years, the HEK in Basel has been committed to the challenge of preserving and collecting media art, especially net art. In addition to its ongoing event and exhibition activities, the HEK is engaged in the methodology of collecting digital art and is distinguished by its unique collection focusing on "born-digital art", i.e. art that originates and resides in the digital medium and often lacks a physical manifestation. Our focus is on software and network-based works that are rarely found in public collections because their preservation requires innovative approaches and a network of professionals, from conservators to programmers.
Given our focus on digital art, integrating NFTs into our collection was a logical progression. The first NFT we acquired was "The D1cks" by the artist duo UBERMORGEN, followed by works by Leander Herzog, Amanda E. Metzger, and Andreas Gysin. This expansion of our collection with NFTs reflects our ambition not only to collect digital art, but also to actively experiment with the technology and make a curated selection of digital art available to a wider audience.
The best articles of the week, directly delivered into your mailbox.Subscribe to our newsletter
It was in this context that we decided to release NFT editions in collaboration with artists. This was part of our project "HEK Connect - Cultural Participation in the Age of a Decentralized Internet", which was supported by the Swiss Federal Office of Culture and the cantons of Basel-Stadt and Basel-Landschaft as part of the Covid support measures. The goal was to create an international community that could actively participate in our program. This project gave rise to the DAO "Friends of HEK", our NFT shop where we publish the HEK editions, and virtual.hek.ch, a digital exhibition space.
The first HEK edition was published in 2022 by the artist Ursula Endlicher as part of the exhibition "Earthbound - In Dialogue with Nature", at a time when our NFT shop was still under development. This led to the release of the NFT on the objkt.com marketplace. As we were still in the early stages of the HEK Connect project, this served as an exploratory step to gain experience in selling NFTs. In addition, in the context of the exhibition and our general goal of being environmentally conscious with resources, we made sure that the drop would take place on a more environmentally friendly blockchain. We chose the Tezos blockchain, which uses less energy due to its Proof of Stake system. Since this first step, our approach has become much more professional, which is reflected in subsequent issues. These include collaborations with Leander Herzog and Milian Mori, as well as the latest edition with Mario Klingemann, whose NFT is still available.
Where do you see natural synergies between blockchain technology and the art industry?
In recent years, we have witnessed a remarkable dynamic at the intersection of art and blockchain technology - an initial boom followed by a significant downturn. However, this development has focused attention on the valuable aspects of this technology. Perhaps the most significant impact of blockchain technology in the art sector is the ability to market digital artworks as unique, collectible objects. Artists also have the opportunity to sell their works directly on decentralized markets, bypassing the traditional intermediary of galleries or auction houses, which has temporarily created significant uncertainty in the established art market. Another benefit is the royalties that allow artists to earn additional income from the secondary market.
Despite the initial turbulence and the withdrawal of royalties by some platforms, as well as the rapid adaptation of traditional galleries to the NFT trend, one constant remains: the artistic engagement with blockchain technology. Artists like Sarah Friend use blockchain as a medium to create their work, while others critically examine the thematic aspects of the technology. The integration of blockchain into the art world can be compared to the commercialization of the Internet and the emergence of net art. However, it will take some time to see how this technology will continue to be used artistically as a medium or critical tool. Nevertheless, I believe that NFTs and other integrations of blockchain technologies into artworks will not disappear. On the contrary, now that the hype has died down, it will be interesting to see how artists deal with this technology and create new synergies.
Another significant benefit of blockchain technology could be in provenance research. The blockchain serves as an immutable, decentralized registry that can seamlessly document the authenticity of an artwork and its complete ownership history. This application could promise a new era of transparency and security in the art world, benefiting collectors, institutions, and artists alike.
Moreover, I see natural synergies between blockchain technology and the art industry, not only in expanding artistic expression and creating new market opportunities, but also in stimulating a profound and critical dialogue about the role and impact of technological developments in art and society.
How have artists and collectors responded to NFTs so far?
Reactions to NFTs, especially within our community, are diverse and reflect a wide range of opinions. Some media artists are skeptical of our efforts to adopt and use blockchain technologies, while others see it as the next logical step in the evolution of the HEK. As with any new technology, blockchain brings with it new forms of criticism, some of which may be based on a lack of technical understanding. The complexity of blockchain technology is undeniable, and we recognize that it may not be immediately accessible to everyone.
To address this, we have launched an extensive education program aimed at making the technology understandable and interactive. This approach has allowed us to convince even the most critical visitors and artists to try the technology at least once.
At the same time, we attach great importance to promoting a critical discourse about NFTs, especially regarding issues such as the high energy consumption of certain blockchain systems and the strongly capitalist tendencies associated with the NFT market. It is important for us to shed light on both sides of this technology, so that both our audience and artists can have an informed discussion and personal connection with the technology.
How would you define a Decentralized Autonomous Organization (DAO)?
I see DAOs primarily as an experimental field for exploring new forms of collectivity, commons, and systemic change. They provide a framework in which we can explore alternative paths in our social and institutional systems. Through their grassroots democratic approach and dissolution of hierarchical structures, they can foster forms of collaboration that potentially challenge our highly capitalist system.
In the art industry, DAOs could serve as a new form of institutional critique. Currently, they are mainly used for monetary purposes within a community, whether to build a collection or to manifest the exclusivity of a group, but the foundations for collectively run institutions, galleries, or exhibition spaces are being laid.
The "Friends of HEK" project is based on this idea. HEK's goal was to use the DAO to create a community that experiments together in the spirit of art. Whether it's deciding on NFT editions, curating a digital exhibition, supporting each other, or engaging in critical discourse: HEK only serves as a background organization, a mediator between members, and an organizer of various events within this community. What Friends of HEK ultimately becomes is in the hands of the community.
Upon closer inspection, the Friends of HEK project does not quite correspond to a true DAO, as it does not have a common treasury and is technically managed centrally by HEK. However, it is conceivable that Friends of HEK could evolve into a real DAO. Access to Friends of HEK is open to all, and tokens can be purchased without a wallet. This allows everyone to participate in shaping the institution, true to the motto: "Your voice matters!" Furthermore, financial gain from membership is not our primary focus. The price of 0.05 ETH (initially about CHF 100.-) was calculated to support the HEK financially and to secure the financing of the project itself.
What advantages/disadvantages have you experienced in dealing with a DAO compared to a traditional business model?
The challenge of comparing DAOs to traditional business models lies in their fundamentally different nature. I see DAOs primarily as a testing ground for new forms of collectivity, where the traditional monetary approach often plays a subordinate role. An observed drawback, however, is the challenge of enforcing democratic decision-making at the grassroots level. This particularly affects voter turnout, which is often hampered by "voter fatigue". While participation in decision-making is typically high initially, it declines significantly over time, compromising the ability to make decisions that truly reflect the community.
Another drawback is the decentralized structure of DAOs. Unlike traditional businesses, collectives, or associations, whose members are often centrally organized-typically based on geographic location-DAOs transcend national boundaries. Members can participate from all over the world, which can make communication difficult due to language barriers and time differences. However, this global reach is also one of the greatest benefits of DAOs. A member's geographic location on the planet becomes irrelevant; one can always be part of a community with a common vision and commitment. This promotes unparalleled inclusivity and diversity by allowing people to work together regardless of their physical location.
To add another aspect: DAOs allow for a more transparent and fair distribution of value and decision-making power. Every member has the ability to contribute and influence based on the DAO's pre-defined rules, which is often limited by hierarchies and bureaucracy in traditional corporate models. This flat structure can foster innovation and engagement, but it also carries the risk of decision gridlock when consensus is difficult to achieve.
Why did HEK move its community from Tezos to the Ethereum blockchain?
When HEK launched the Friends of HEK initiative, the available options and tools for DAOs on the Tezos blockchain were not as mature as on the Ethereum blockchain. While our commitment to Tezos was longstanding and deep, we felt it was our responsibility to explore the potential of other blockchains. This included addressing the significantly higher gas fees on Ethereum, which led us to consider moving to a layer 2 solution for the upcoming 2025 season, or even offering our token on multiple blockchains. The goal is to give the community the freedom to decide which blockchain they want to operate on, while still being part of a unified community.
To be more specific, we have not moved our community from one blockchain to another in the traditional sense, but rather expanded our presence to another blockchain. This also applies to our NFT issues. In the future, we will continue to allow artists to choose which blockchain to mint their HEK editions on, as long as it is technically feasible. Our goal as an institution is to experiment with a variety of technologies without committing to any one. In this way, we hope to gain a wide range of knowledge and experience that we can then share with our community, visitors, and artists.
What can Friends of HEK members expect this year?
Annual Friends of the HEK members can look forward to free admission to our exhibitions this year, as well as a host of exclusive activities and opportunities to get involved with our institution. One highlight will be the upcoming decision on the design of the HEK 2024 token. Here, the community will have the opportunity to actively decide which artist will create the "face" of the token. Last year, Auriea Harvey was selected to create the "Face of Token" artwork. At the end of the membership year, this NFT can be traded, added to your collection, or given as a gift. For 0.05 ETH, members receive artwork from internationally recognized artists.
In addition, members have the opportunity to participate in and design exhibitions on virtual.hek.ch. There is even the possibility that a NFT edition will emerge from the DAO. The possibilities are endless: If the community makes a proposal that is technically and financially feasible, we will try to implement it. Regular events within the DAO, such as artist talks, online tours, and discussion groups, are also part of the regular program. The community also serves as an excellent networking tool for initiating projects or fostering discourse.
Ultimately, much is possible because the power of creativity lies within the community and what they make of it!
Ugo Pecoraio (1988) is the current Head of Communications at HEK (Haus der Elektronischen Künste), where he is also involved in institutional projects in the field of Web3 and Blockchain and contributes to the development of digital exhibition formats. In addition to his role at the HEK, Pecoraio works as an independent curator and consultant. His expertise includes blockchain projects, strategic planning, designing digital exhibition concepts, and exploring new positioning opportunities for artists and designers. He lives and works in Basel, Switzerland.
