A standard interface for non-fungible tokens that pay royalties for a digital asset to the original creator(s) and/or owner(s).
This standard will allow for the implementation of a standard API for non-fungible tokens that represent virtual collectibles or physical property within smart contracts.
There will be 3 types of relationships that can exist with the digital asset:
The creative license holder of a token will always get paid an agreed upon portion of a digital asset's value every time the digital asset is the subject of a transaction.
Existing standards for non-fungible tokens fall short of addressing the issue of ensuring that the creator(s) of an asset are entitled to the revenue or value generated by an asset over the course of its existence.
// Function to initialize token and set the owner(s) and the royalty rates. Returns the unique token ID for the digital asset.
// Function to transfer creative license of token
// Function to transfer ownership license of token
// Function to rent asset
This ERC standard would empower creators of unique digital and real world assets to participate in the financial upside of their creations. This standard will reward creators beyond the point of initial sale of their product. It will encourage individuals to unleash their creative potential and be confident that their creations will provide them recurring income as the asset's price rises in value or achieves commercial success. It will allow for multiple parties to co-create and sell assets. Guaranteeing creative owners a means to reliable recurring revenue will foster the growth of various creative industries for the benefit of all.
For example, in the art industry, the artist does not receive any royalty from their work after the initial sale. If artists can be guaranteed that their creative efforts can provide them with a means of recurring revenue, this will inspire more people to consider commercializing their creativity which will be beneficial to not only the art industry, but to the wider art community as a whole.
Another example can be found in the gaming industry. E-sports is a huge phenomenon where many people tune in to watch. When well known players of a gaming community take part in global tournaments, viewership of the game's live streams rise and so do game's popularity. Digital assets of popular players from previous tournaments can be rented out to other players which will serve to drive up the hype of the digital asset, the people involved, and the game as a whole.
Copyright and related rights waived via CC0.
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