NFT Royalties
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NFT royalties give a percentage of the sale price each time after the initial sale of the CollarQuest NFTs (SPARC-Es, Land, Buildings) are sold on any marketplace. NFT royalty payments are perpetual and are executed by smart contracts automatically. All CollarQuest gameplay NFTs (excluding power-ups, abilities) will have a 10% royalty where the fee is directed to CollarQuest.
The NFT royalties are automatic payouts to the CollarQuest Tokenomics made on secondary sales. These are coded into the smart contract on the blockchain. Each time secondary sales happen, the smart contract ensures that the terms of the NFT are fulfilled. If a royalty is specified, a cut of the profits goes to the CollarQuest Tokenomics see Figure I.
There are no intermediaries needed, nor does this depend upon the wishes of whoever is transacting them. Please note that not all NFTs yield royalties. It has to be written explicitly into the terms. Once the smart contract terms are written into the blockchain, the rest is taken care of automatically.
The royalties paid to benefit the CollarQuest ecosystem by providing an ongoing fund to help the CollarQuest ecosystem.
When members breed their SPARC-Es and then sell the offspring, the member retains a 5% royalty in perpetuity for each and every time that offspring SPARC-E is sold on an open market - after the initial sale. Example: a SPARC-E owner breeds 2 SPARC-Es, and sells the offspring to buyer number 1. The original breeder does NOT receive 5% on this sale. Buyer number 1 sells that offspring SPARC-E to buyer number 2. The original owner/breeder DOES receive 5% on the secondary and all future sales.
