RMRK’s Singular NFT Marketplace is excited to introduce a new feature called Nested Royalties. Nested Royalties refer to the royalties applied to Nested NFTs, which are a group of NFTs packaged within another NFT (i.e. one NFT is the parent of child NFT[s]).
When NFTs are sold separately, calculating the royalties to be paid out to the creator is a straightforward process. However, when NFTs are nested together and sold, calculating the royalties for each NFT becomes tricky due to the variable value problem.
Let’s assume a nested bundle containing 4 NFTs is listed for $2,000. The parent NFT (NFT P) has a 10% creator royalty, while the children NFTs (NFT C1, NFT C2, and NFT C3) have 3%, 5%, and 7% creator royalties, respectively.
How do we calculate the royalty for each NFT? Are we to assume that all NFTs in this bundle are equal in value? Of course not. Usually, in any nested bundle, there will be a single NFT that represents over 50–80% of the bundle’s value. Thus, since all NFTs in a nested bundle do not have equal value, we cannot calculate royalties for each NFT based on a single price (the total bundle price).
To ensure that each creator’s royalty is honored relative to the price set by the seller, RMRK’s Nested Royalty Solution requires all nested NFTs listed for sale to specify a price for each NFT in the bundle.
But don’t worry — we’ve made it easy for you. Our intuitive user interface uses sliders to vary the percentage and automatically calculates the amount. All you have to do is specify the total price and distribute it among the various NFTs. Here is how it works:
RMRK’s Nested Royalty Solution ensures that creator royalties are upheld regardless of how complex the NFT bundle. It is our goal to make listing nested NFTs as easy as listing a single NFT. In the future, we plan to offer smart suggestions for how much each NFT in a nested bundle should cost, heavily influenced by market data.
In conclusion, Nested Royalties on RMRK’s Singular NFT Marketplace provides a fair and transparent way for creators to receive royalties for their NFTs in a nested bundle. We hope this new feature enhances the experience of creators and buyers on our platform!
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