The team @limitbreak and @gabrielleydon announced a new open source royalty standard for ETH NFTs last week called ERC721-C.

This is a new way for holders to earn WITH the NFT founder.

ETH NFT creators haven’t tried this…yet

🧵

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This new standard can do the following for NFT holders:

1.Minter Royalties
Payment given to first minters

2. Shared Royalties
Payments given to many or all NFT token holders

3.Transferrable Royalties
Payments given to NFT tokens that can be transferred to another holder

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Because @gabrielleydon made this open source, I have thought of several additional implementations to this royalty standard.

I’ll list the following.

1RNG Royalties

2Skill Based Royalties

3Cosmetic Royalty Rarity

4Effort Based Add-on
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1RNG Royalties

A creator could randomly assign a royalty preference to certain token holders on a weekly or monthly basis. A portion of royalties generated at a certain period of time would automatically transfer to a token holder’s wallet.

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2Skill Based Royalties

A creator could assign a certain percentage of royalties to token holders based on their dynamic and recorded skills in an on-chain game. Performance leads to more revenue share of royalties.

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3Cosmetic Royalty Rarity

A creator could assign a royalty percentage to token holders based on the type of cosmetic trait listed on the token.

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4Effort Based Add-on

A creator could assign increased royalty percentages to token holders who complete certain objectives established by a creator.

For example giving royalty preferences to project specific DAOs as contributors.

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Why does this matter? Aren’t royalties dead?

Maybe. Royalties as we know them are dead because traders can’t capitalize AND holders feel penalized. The holders matter more than the traders for NFT brands in the long run. This standard could align incentives using royalty.

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PLEASE NOTE THAT WE ARE NOT LEGAL EXPERTS AND YOU SHOULD SPEAK WITH A LAWYER OR LAW FIRM BEFORE IMPLEMENTING A ROYALTY STANDARD LIKE THIS AS IT IS NOVEL

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