Seller's Fee Distribution & Royalty
*Example; Selling on the secondary market will result in a 10% fee, 100 ADA sale will receive 90 ADA minus the listing markets fee*
By default, any user selling a Meta Realty DAO CNFT will have to pay fee equal to 10% of the sale price.
Please keep in mind that any marketplace in which the Meta Realty DAO CNFT Collection is verified for resale, the seller will pay a 10% fee regardless of how much the marketplace charges as it's own fee.
Regardless of whether a marketplace charges 0%, 2%, or even 5% fees to cover their operating expenses, Meta Realty DAO by default will not force a seller pay more than a 10% fee to sell a CNFT from our collection.
The proceeds from this fee will be distributed as follows:
Marketplace Fee - NFT Marketplaces typically charge a small fee to cover their own operating expenses, usually somewhere between 2-5%. This is taken right off the top of the 10% fee charged to the seller, and the remaining balance is divided between the Reservoir Fund Wallet and an Artist Royalty Fee.
Reservoir wallet - Of the remaining balance, 70% will go to the Reservoir Fund Wallet.
Artist Royalty - The final 30% will go to the Development Team as an Artist Royalty fee.
It is important to remember that as a decentralized organization, while our Development team initially wishes to it is possible that at some point, users may vote to change this fee structure.
Example Breakdown of Marketplace Seller Fee
Let's imagine a sale of a Meta Realty DAO CNFT on a Marketplace which charges a 4% fee, and the CNFT was sold for 1,000 ADA.
The seller by default will pay a 10% fee, so of the 1,000 ADA sale price, the seller will receive 900 ADA.
The Marketplace itself charges the seller 4%, so of the 100 ADA fee, the Marketplace would receive 40 ADA. The math here is 1,000 ADA multiplied by 4% (or .04), which equals 40 ADA.
So, the fee is 100 ADA, and the Marketplace takes 40 ADA, leaving 60 ADA remaining.
Of that 60 ADA, 70% would go to the Reservoir wallet, and 30% would be considered an Artist Royalty.
This means that on a 1,000 ADA sale, 42 ADA would go to the Reservoir Fund (60 * 70% = 42), and 18 ADA would go to the Developers (60 * 30% = 18).
IMPORTANT NOTE: Please keep in mind that the Marketplace fee is paid FIRST out of the 10% fee charged to the seller
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