Revenue Split & Royalties

Overview

Revenue split and royalties are crucial aspects of an NFT sale that ensure creators continue to benefit from their work, even after the initial sale.

Primary Sales (Mint)

When your users mint tokens, this is considered a primary sale. The revenue split here will refer to the split of the primary sales exclusively. Additionally, your primary sale revenue goes directly into the smart contract and the split occurs when you make the additional action to withdraw.

Revenue Split

Revenue split refers to the division of proceeds from the initial sale of the NFT. This could be between the creator and any collaborators or platforms involved in the sale. The terms of this split are usually agreed upon beforehand and can vary widely depending on the specifics of the project.

Note: Revenue split will not be locked and can be edited until the lock function is called. If you are a partner, please verify with the deployer that addresses are proper and lock the revenue split to make it permanent.

Royalties

Royalties, are ongoing payments that creators receive every time their NFT is resold on the secondary market. This is a powerful feature of NFTs that allows artists to benefit from the increasing value of their work over time. The royalty percentage is typically embedded into the smart contract of the NFT, ensuring that a portion of every future sale automatically goes to the original creator. This creates a sustainable revenue stream for artists.

Typically: royalties are set anywhere between 3% to 7% and never exceeds 10%

OpenSea's Operator Filter Registry Update for Creator Studio Contract

As of November 8, 2022, OpenSea is enforcing on-chain royalties with their Operator Filter Registry. If you do not opt-in, OpenSea will still list your collection, but they will not honor your royalties settings.

You can opt into it by toggling on Enforce Royalties when deploying the contract. This will use OpenSea's Operator Filter Registry to prevent your tokens from being traded on marketplaces that do not enforce creator royalties.

You can learn more about the change in OpenSea's official support docs.