Legal Term
NFT artist collaboration smart contract royalty splits explained
Legal Definition
A self-executing blockchain-based agreement that automates the distribution of secondary sale royalties among multiple collaborating NFT creators according to predefined, immutable percentages.
In Plain English
A digital rulebook for NFT collaborations that automatically pays each artist their agreed-upon share every time the NFT is resold, without anyone having to chase payments.
Example in a Contract
Upon each Secondary Sale of the NFT, the Smart Contract shall irrevocably allocate the Royalty Pool (equal to 5% of the Sale Price) as follows: 3% to the primary Artist's designated wallet (0xABC...), 1.5% to the collaborating Generative Artist's wallet (0xDEF...), and 0.5% to the contributing 3D modeler's wallet (0xGHI...). Distributions shall occur in ETH prior to the transfer of ownership to the buyer.
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