LSP18 Royalties

LSPs/LSP-18-Royalties.md

@@ -0,0 +1,97 @@
+---
+lip: 18
+title: Royalties
+author: Volodymyr Lykhonis <vlad@universal.page>, Jake Prins <jake@universal.page> 
+discussions-to: https://discord.gg/E2rJPP4
+status: RFC
+type: LSP
+created: 2022-11-23
+requires: LSP2
+---
+
+## Simple Summary
+
+This standard describes a set of [ERC725Y](https://github.com/ethereum/EIPs/blob/master/EIPS/eip-725.md) data key values to store royalties recipient addresses and corresponding percentages in a [ERC725Y](https://github.com/ethereum/EIPs/blob/master/EIPS/eip-725.md) smart contract.
+
+## Abstract
+
+LSP18 is a metadata standard that defines two data keys that can be added to an [ERC725Y](https://github.com/ethereum/EIPs/blob/master/EIPS/eip-725.md) smart contract to describe royalties:
+
+- `LSP18RoyaltiesRecipients` is a [LSP2 BytesCompactArray](./LSP-2-ERC725YJSONSchema.md#bytescompactbytesarray) of royalties recipient that contains:
+  - a recipient's interface id 
+  - a recipient's address
+  - a royalties share (percent)
+- `LSP18RoyaltiesEnforcePayment` is a boolean to enforce royalties whenever the NFT is sold at loss.
+
+## Motivation
+
+This standard allows to create a decentralised asset royalties allocations by a smart contract.
+
+## Specification
+
+Every contract that supports the LSP18Royalties MUST have the following data keys:
+
+### ERC725Y Data Keys
+
+#### LSP18RoyaltiesRecipients
+
+An array of royalties recipients and corresponding percentages.
+
+The data value MUST be a [LSP2 BytesCompactArray](./LSP-2-ERC725YJSONSchema.md#bytescompactbytesarray) which contains a list of royalties recipients. Each royalties recipient is a tuple of:
+- `interfaceId` = an interface identifing a recipient of royalties. If the interface is not known, it is assumed to be `0xffffffff`.
+- `recipient` = address of a recipient to receive royalties
+- `points` = a percentage in points where `100_000` is basis. e.g. `15%` is `15_000` points, and `1.5%` is `1_500` points.
+
+```json
+{
+    "name": "LSP18RoyaltiesRecipients",
+    "key": "0xc0569ca6c9180acc2c3590f36330a36ae19015a19f4e85c28a7631e3317e6b9d",
+    "keyType": "Singleton",
+    "valueType": "(bytes4,address,uint32)[CompactBytesArray]",
+    "valueContent": "(Bytes4,Address,Number)"
+}
+```
+
+A compact byte array allows optinally to store additional fields if needed. Required fields are: `interfaceId` and `recipient`. The `points` field is optional and if not provided it is assumed to be `0` points.
+
+#### LSP18RoyaltiesEnforcePayment
+
+A boolean when `true` to indicate enforcement of royalties even if a NFT is sold at a loss. By default this is `false`, and a marketplace may not enforce royalties.
+
+```json
+{
+    "name": "LSP18RoyaltiesEnforcePayment",
+    "key": "0x580d62ad353782eca17b89e5900e7df3b13b6f4ca9bbc2f8af8bceb0c3d1ecc6",
+    "keyType": "Singleton",
+    "valueType": "boolean",
+    "valueContent": "Boolean"
+}
+```
+
+## Rationale
+
+## Implementation
+
+ERC725Y JSON Schema `LSP18Royalties`:
+```json
+[
+    {
+        "name": "LSP18RoyaltiesRecipients",
+        "key": "0xc0569ca6c9180acc2c3590f36330a36ae19015a19f4e85c28a7631e3317e6b9d",
+        "keyType": "Singleton",
+        "valueType": "(bytes4,address,uint32)[CompactBytesArray]",
+        "valueContent": "(Bytes4,Address,Number)"
+    },
+    {
+        "name": "LSP18RoyaltiesEnforcePayment",
+        "key": "0x580d62ad353782eca17b89e5900e7df3b13b6f4ca9bbc2f8af8bceb0c3d1ecc6",
+        "keyType": "Singleton",
+        "valueType": "boolean",
+        "valueContent": "Boolean"
+    }
+]
+```
+
+## Copyright
+
+Copyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).