A blockchain-based distribution mechanism that uses smart contracts to automatically split and distribute royalty payments among multiple stakeholders including creators, collaborators, developers, and brands based on predefined ownership percentages.
Semantic Classification
Content
Technical Details
- Implemented through split contracts that execute automatic distribution
- Uses ERC-2981 royalty standard for marketplace compatibility
- Supports platforms including Ethereum, Solana, and Polygon
- Typical royalty rates range from 2.5% to 10% on secondary sales
- Tracks sales figures, calculates fees, and monitors compliance
Challenges
- Lack of universal royalty enforcement across marketplaces
- Some platforms have moved to royalty-optional models
- Cross-platform royalty parameter inconsistency
- Interoperability issues when NFTs transfer between platforms