8. Royalties Flow
The Fragnova Network wants to empower creators and developers, valuing their work and talent as much as possible. That’s why the network aims to only take 5% of the proceeds, compared to up to 75% on other platforms! The decentralized nature of the Fragnova Network promotes the development of its community, for the community, by the community.
Proceeds from the primary and secondary sales of any Fragment go into a vault. This vault contains the rules defined by a cluster, a group of users involved with the project. These stakeholders decide how the proceeds are distributed.
The cluster describes which users are involved with the project, their role and how much royalties each one receives, as well as allocating enough royalties to cover the licensing of all Protos used in the project.
For example, a cluster might be composed of a game designer, a writer, a developer and an IP holder. They can then decide on a royalty distribution to be:
- Game designer: 25%
- Writer: 4%
- Developer: 25%
- IP holder: 9%
- Proto allocation 30%
- Fragnova: 5% (fixed, platform fee)
- Curators: 2% (fixed)
This works like a contract between the people involved that automatically distributes the royalties when the project generates revenue. The distribution is not only quick, but also transparent between all parties.
Some Protos will have a TICKET cost to be licensed, and the percentage of royalties their owner receives will depend on how many TICKETs that Proto cost and how many Protos were used in the project. Some creators can set a fixed percentage of royalties they want to receive for their Protos, especially for higher quality ones.
That means that creators and contributors will receive perpetual royalties anytime a Fragment that uses one of their Protos generates revenue.
Fragnova will also reward curators, as they perform an important role in highlighting the assets that deserve attention and keeping the marketplace healthy.
The full royalties distribution details will be released at a later date. We are in constant communication with creators to help us decide a clear and fair way to value their work.
Use case examples: