Collecting royalties is a complicated job. So complicated, that there is an entire industry dedicated to hunting down money owed to artists and creators.
In the digital world, non-fungible tokens (NFTs) have become the fastest-growing medium for selling digital assets, and some NFTs have built-in royalty-payment functionality.
However, they can only pay royalties to one creator, in one cryptocurrency, and even then, the payment is voluntary. In terms of revolutionizing royalty collections, they fall short in many ways.
We at Tatum have decided to change all that.
Tatum is a platform that simplifies blockchain development, and we have just created a new type of royalty NFT with features that go far beyond those available on the market today.
Using our
Ethereum (ETH)Polygon (MATIC)Celo (CELO)Harmony (ONE)Binance Smart Chain (BSC)
So what’s the big difference?
EIP-2981 is currently the most popular royalty NFT standard, but Tatum’s NFTs are a major improvement in several ways:
- They can payout royalties to multiple creators
Whereas EIP-2981 NFTs can only pay royalties to a single creator, Tatum’s NFTs can pay to as many creators as you want, and each creator can receive a different percentage. This means you could set a percentage cashback for every member of the team involved in creating a video, and everyone would receive their share upon every transaction of the NFT.
- You can make royalty payment mandatory
With other royalty NFTs, the royalty payment is optional. This requires trusting that every time someone buys the NFT, they will choose to pay the percentage royalty amount to the original creator.
However, with our NFTs, you have the option to make royalty payment mandatory. Each NFT pays out a percentage of the purchase price to each creator with every transfer. If someone tries to bypass this by setting the purchase price to zero, there is a function that allows you to set a minimum amount of cashback that must be paid for the NFT to be transferred. If the percentage royalties are less than the value of the minimum cashback, the minimum amount of cashback will be paid out.
This minimum amount of royalties is optional, so you could also make royalty payment voluntary by setting it to zero.
- They can payout royalties in ERC-20 tokens.
You could create an NFT on Ethereum which pays royalties in USDT, an NFT on Celo which pays royalties in cEUR, or any other ERC-20 token on the token’s blockchain.
This opens up a world of possibilities for convenient royalty payments in various cryptocurrencies on each blockchain and is the first feature of its kind in the blockchain space.
A new era of digital assets
This NFT functionality is blazing a path to a future where royalty payments are completely automated and integral to the digital assets themselves. With NFTs becoming more and more commonplace as tokenized representations of both artistic and functional assets, creators and companies of all kinds can now easily leverage comprehensive royalty payment features to ensure they continue to get paid, forever.
The possibilities are limitless for a wide range of verticals. Imagine selling in-game assets like weapons and skins where everyone in the design and dev teams gets a share of each sale. Or selling rare sneakers using NFTs as digital certificates of authenticity.
With the hefty resale prices, fashion articles commonly fetch in the aftermarket, tapping into this revenue stream would be highly lucrative for both independent creators and established manufacturers.
Speaking of authenticity, Tatum’s NFTs also record provenance data, or, a record of every transaction in the token’s history. This ensures that the verification of an asset’s authenticity is fast and accurate, eliminating any possibility of forgery or fraud. For the tokenization of real-world physical items, this instant verifiability is priceless and will save both buyers and sellers countless hours of investigation.
const obj = await getNFTProvenanceData(
Currency.ETH,
'0x7060694f5ce1feb5a255d06fdcf6e4f7a3507492',
'15',
);
How to create them
Using Tatum’s
**
**If you are an enterprise looking to move into the NFT space, we have also recently launched a__Partnership Program__ to guide you through the process.
The time to tap into the wave of NFT fever is now, and Tatum’s NFTs will help you stay well ahead of the curve. Get started creating the NFTs of tomorrow and keep getting paid forever!
More about Tatum
Tatum supports over 40 blockchain protocols and is used by over 16,000 developers from around the world. Apps built on Tatum are used by tens of millions of end-users and process billions of dollars worth of transactions per month. Earlier this year, Tatum made waves in the tech world by winning the European Startup World Cup Finale and becoming a top 5 finalist in the TechCrunch Startup Battlefield as the first-ever blockchain startup selected to participate.