Royalties Module

WIP : Currently work in progress, subject to change as per core contributors

Royalties form the crux of ensuring creators are continuously rewarded for their ingenuity. While the concept of royalties isn't new, Arka Network believes in innovating and refining this system, especially in the ever-evolving NFT space.

Note: Arka is committed to building the underlying technology to effectively implement the following two royalty models, ensuring they operate seamlessly within the ecosystem.

Type of Royalties on Arka:

Fixed:

In the traditional model, a fixed percentage of royalties is applied to every subsequent sale or transaction of the NFT, remaining unchanged throughout its lifecycle. This provides creators with predictability, ensuring a continuous stream of income regardless of the NFT's sales frequency. For Arka Network, this model is ideal for those creators seeking consistency in their revenue streams.

Time Decay:

The royalty percentage diminishes over time, possibly adhering to a predetermined schedule or specific milestones. As the NFT ages, the royalty charged on its transactions dwindles. Arka Network introduces this system to address the potential decrease in an NFT's value or relevance over time. By tapering off royalties with the passage of time, it not only incentivizes traders and secondary owners to invest in older NFTs but also ensures that creators are adequately compensated during the NFT's peak periods.

Sales Decay:

Royalties are contingent on the frequency of the NFT's sales, meaning the initial sales might incur a higher royalty, which subsequently reduces. This model is integral to Arka Network's approach, recognizing the substantial value that original creators contribute by debuting a unique NFT. Although they receive significant rewards for initial sales, the decreasing royalty structure as the NFT undergoes more transactions promotes liquidity in the marketplace.