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Hobart winter festival Dark Mofo will work to include Aboriginal artists at future events after copping a backlash over a piece that proposed soaking a British flag in the blood of Indigenous people.
The popular event was in March forced to pull the pin on the project by controversial Spanish artist Santiago Sierra.
Mr Sierra had asked for Indigenous people to donate their blood for an artwork he dubbed an anti-colonisation statement.
Dark Mofo creative director Leigh Carmichael says a $60,000 seed fund will be set up for Tasmanian Aboriginal artists to develop proposals for future festivals.
The fund will be managed by a yet-to-be-appointed First Nations cultural advisory group.
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