Content creators and artists will likely be pleased with the news that there is now a solution for maintaining royalties on non-fungible tokens (NFT) even when a piece is sold on secondary markets.
Rarible DAO has unveiled a system that allows royalties to be programmed directly into the smart contract for non-fungible tokens. Content creators can still receive royalties every time their work is resold.
In a blog post on Sept 7, Rarible DAO explained the concept with a tutorial that does involve a little coding at the smart contract level. Essentially, including a file in the ERC-721 contract and setting parameters enables the defined royalties to be passed on with the NFT.
More power to creators
The NFT marketplace Rarible manages royalties on-chain through its own royalty registry contract. Whenever a transfer occurs within the marketplace, the protocol checks to see if the NFT expects to have any royalties paid out.
The system imports the Rarible code which enables the user to call the RoyaltyRegistry contract to receive the royalty amount automatically. The setup was deployed and demonstrated by Aisthisi, an NFT experiment combining physical and digital experiences with Greek olive oil-based items.
The installation must be done manually at the moment but it’s likely to become an automated feature in the future.
Rarible Protocol DAO was set up in August to provide open source tools and smart contracts for NFT creators and developers.
“Projects can use these tools to build consumer facing applications, while smart contract developers can build features in the protocol that benefit an entire ecosystem of projects.”
In late August it launched a program designed to distribute ownership of the protocol to NFT application builders via Rarible’s native RARI token. Approximately 41,000 RARI tokens, currently valued at around $1 million, are distributed every week to applications on the protocol.
NFT mania takes a breather
There has been a slight slowing down in the NFT craze that has gripped 2021 and brought the Ethereum network to its knees for a second time.
According to NonFungible, seven-day sales hit a record $1 billion dollars in late August as several NFT collections were released in quick succession. CryptoPunks still dominate for sales to date with $1.1 billion worth of them sold so far.
The number of total daily sales hit a peak of 23,132 on Aug 26 but has cooled down to just 3,400 on Sept 7.
To celebrate its third anniversary, BeInCrypto has released its own NFT charity collection which can be found here.