💪Royalties

Tent has always been committed to adhering to Cardano-set standards since our beginnings, this is why we have supported royalties since the launch of our platform. We also believe royalties are an integral part of most NFT projects and are essential to support creators.

This is why in Tent we support royalties on every single trade where NFTs are being traded by ADA, even trades containing multiple NFTs. Naturally, there are no royalties on trades trading exclusively NFTs.

Calculating Royalties

To put it simply, royalties will be calculated and averaged out based on the floor prices of the Policy IDs being traded. We have partnered up with CNFT Jungle to get up-to-date market data (specifically floor prices) for every verified Policy ID.

Using these floor prices, we can have a rough estimate of the total value of the trade and how much every Policy ID contributes to this total value. Using this, we assign a weight to every Policy ID in the trade and calculate the royalties against the ADA being traded using that percentage.

Here is an example to visualize the system in action:

In this example, we have two Policy IDs, with drastically different floor prices and royalty percentages, using our royalty system, we can calculate a better and more accurate royalty distribution that is fairer for everyone, both the projects and the users.

As you can see, the floor and total estimated value are simply used to get the weight of every Policy. The final royalties will be calculated according to the ADA being traded, not the estimated floor calculation.

Limitations

Of course, this system isn’t perfect, as it doesn't account for special rare tokens that are valued way above floor price, but it does a pretty good job of giving us a baseline for a better royalty distribution for the projects involved in the trade.