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How do the royalties work on EXA Market?
How do the royalties work on EXA Market?
Erika Marie avatar
Written by Erika Marie
Updated over a week ago

Creator fee (royalty)

The Creator sets its fee (up to 15%) globally on-chain using its Creator Address. That means that all assets created by this address will be governed by this fee.
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In addition to earning royalties in ALGO, Creators could also earn royalties over time in the following currencies, if they have opted-in these assets in their settings (see related article at the bottom of this page๐Ÿ‘‡):

Listing of a single asset

Letโ€™s say Creator has created 10 NFTs with Creator Address and sets its royalty to 8%. All of these NFTs will have a 8% royalty attached to them, meaning that 8% of the listing price will be paid to Creator whenever a sale occur.

๐Ÿ‘‰ Case study 1

Seller lists an NFT from Creator for 100 ALGO.

Buyer purchases the NFT:

  • 8 ALGO goes to Creator

  • 1.99 ALGO goes to Platform fee

  • 90.01 ALGO goes to Seller

๐Ÿ‘‰ Case study 2

Seller lists an NFT from Creator for 200 USDC.

Buyer purchases the NFT:

  • 16 USDC goes to Creator

  • 3.98 USDC goes to Platform fee

  • 180.02 USDC goes to Seller

    โš ๏ธ Note that if the Creator has not opted-in USDC, the royalties will be sent to the Platform fee address. This is applicable for any ASA (USDC, USDT, gALGO, goBTC, goETHโ€ฆetc).

Listing of a bundle of assets

The EXA protocol allows users to create bundles of up to 4 assets but how do the royalties are computed? Especially for bundles with assets from different Creators? Letโ€™s find out in this section.
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The royalties are computed according to the following formula:

  • R is the total royalties a Buyer will pay to the Creators

  • P is the price of the listing

  • N is the number of assets with a Creator fee set (> 0%)

  • ri is the royalty of asset of index i

๐Ÿ‘‰ Case study 1

Seller lists a bundle of 3 NFTs from Creator for 100 ALGO.
โ€‹
Creator has 5% royalties set.

Buyer purchases the NFT:

  • 5 ALGO goes to Creator

  • 1.99 ALGO goes to Platform fee

  • 93.01 ALGO goes to Seller

๐Ÿ‘‰ Case study 2

Seller lists a bundle of 3 NFTs from Creator1 , Creator2 , and Creator3 for 100 ALGO.
โ€‹

Creator1 has 9% royalties set.
Creator2 has 4% royalties set.
Creator3 has 8% royalties set.

Buyer purchases the NFT:

  • 7 ALGO in royalties goes to the Creators (Creator1 , Creator2 , and Creator3)

  • 3 ALGO goes to Creator1

  • 1.33 ALGO goes to Creator2

  • 2.66 ALGO goes to Creator3

  • 1.99 ALGO goes to Platform fee

  • 91.01 ALGO goes to Seller

๐Ÿ‘‰ Case study 3

Seller lists a bundle of 3 NFTs from Creator1 , Creator2 , and Creator3 for 100 ALGO.
โ€‹

Creator1 has 9% royalties set.
Creator2 has 4% royalties set.
Creator3 has 0% royalties set.

Buyer purchases the NFT:

  • 6.5 ALGO in royalties goes to the Creators (Creator1, and Creator2)

  • 4.5 ALGO goes to Creator1

  • 2 ALGO goes to Creator2

  • 0 ALGO goes to Creator3

  • 1.99 ALGO goes to Platform fee

  • 91.51 ALGO goes to Seller


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