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Royalty Policy

The Royalty Policy ensures that digital artists continue to benefit from their creations even after their initial sale. This powerful mechanism connects creators to their digital assets, guaranteeing them a portion of the profits with every subsequent sale.

Concept:

In the realm of digital art, the Royalty Policy acts like a tether between artists and their creations. Once an artist crafts a unique digital asset, represented as an NFT (Non-Fungible Token), the relationship doesn't end with its initial sale. By defining royalty terms using the Royalty Policy, artists ensure a predetermined royalty rate from every subsequent sale. This royalty is automatically calculated and transferred to the artist whenever their art is sold to a new owner.

Example:

Consider a digital artwork with a royalty specification as:

pact
"royalty_spec": {  "fungible": "coin",  "creator": "k:creator",  "creator-guard": {"keys": ["creator"], "pred": "keys-all"},  "royalty-rate": 0.05}
pact
"royalty_spec": {  "fungible": "coin",  "creator": "k:creator",  "creator-guard": {"keys": ["creator"], "pred": "keys-all"},  "royalty-rate": 0.05}

Here, a royalty rate of 5% (0.05) ensures that the artist will receive 5% of all future sales. This allows the artist to continually benefit from their creation.

Technical Specifications

Policy:

royalty-policy-v1 extends the functionality of the base kip.token-policy-v2 interface. It provides specific rules for token actions and royalty payouts during the sale of a non-fungible token.

Royalty Specification and Table:

  • royalty-schema: Stores royalty-related information for NFTs, like the creator, royalty rate, and the associated fungible token.
  • royalties Table: Maintains royalty configurations for NFTs managed under the policy, including the token ID and its associated royalty details.

Capabilities:

  • GOVERNANCE: Governs contract upgrades.
  • ROYALTY @event: Emits the token-id and registered royalty information during enforce-init.
  • ROYALTY-PAYOUT @event: Emits royalty payout information during enforce-buy if a royalty is paid.

Functions:

  • enforce-init: Sets initial royalty information for a token, ensuring artists get their royalties.
  • enforce-buy: Manages royalty payouts during sales. Validates and abides by the agreed terms between buyer and seller.

Payload Message:

ROYALTY_SPEC:

Initializes and validates a royalty for a fungible token. The royalty-schema object contains necessary fields like fungible, creator, creator-guard, royalty-rate, and quote-policy.

Events:

ROYALTY:

Triggered within the enforce-buy function when a sale concludes, and a royalty payment is made to the token's creator. Emitting line: (emit-event (ROYALTY sale-id (at 'id token) royalty-payout creator))

In conclusion, the Royalty Policy revolutionizes how digital artists benefit from their work. With each transaction, artists are rewarded, emphasizing the ongoing value of their creations.

Royalty Policy Contract