CIP-0027 | Standardization of royalties

CIP-0027.md

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+## Simple Summary
+
+Create a standard tagging for royalties' distribution within the metadata of Cardano Assets.
+
+## Abstract
+
+This proposed tagging standard will allow for uniform royalties' distributions. It has been developed with input from Artano, CNFT.io, Digital Syndicate, and Buffy Bot.
+
+## Motivation
+
+There is a significant number of artists who have expressed desire to leverage a royalties function within Cardano Assets, which will allow them a percentage of the future resale of assets they have created. There is also a misperception that Smart Contracts will have a built in solution for royalties. As of the writing of this CIPS proposal, Smart Contracts do not have this capability. By creating a standard for metadata tags, it will allow for immediate adoption, and backwards compatibility.
+
+## Specification
+
+"royalties" - Placed within CNFT Metadata.
+ Can either be an array that contains the royalties instructions or contains a link to offchain royalties json which includes the royalties instructions. The link to an offchain json is recommended so that it can be modified in the future.
+
+Royalties instructions tags:
+
+"royaltiesContact": contact info for royalties inquiries (optional)
+ "royaltiesInstructionVersion": version of formatting used
+ "royaltiesPercent": Overall percentage of resale to be distributed as royalties
+ "royaltiesPrimaryOwner": Friendly name of first royalties party (optional)
+ "royaltiesPrimaryPercent": Percentage of royalties distribution for the first party
+ "royaltiesPrimaryWallet": Wallet address to forward royalties to first party
+ "royaltiesSecondaryOwner": Friendly name of second royalties party (optional)
+ "royaltiesSecondaryPercent": Percentage of royalties distribution for the second party (optional)
+ "royaltiesSecondaryWallet": Wallet address to forward royalties to second party (optional)
+ "royaltiesTertiaryOwner": Friendly name of third royalties party (optional)
+ "royaltiesTertiaryPercent": Percentage of royalties distribution for the third party (optional)
+ "royaltiesTertiaryWallet": Wallet address to forward royalties to third party (optional)
+ "royaltiesQuaternaryOwner": Friendly name of fourth royalties party (optional)
+ "royaltiesQuaternaryPercent": Percentage of royalties distribution for the fourth party (optional)
+ "royaltiesQuaternaryWallet": Wallet address to forward royalties to fourth party (optional)
+
+## Example JSON
+
+Onchain
+
+        "royalties": "https://bit.ly/3yToIri"
+
+Offchain
+
+[
+    {
+        "royaltiesActive": "true",
+        "royaltiesContact": "[email protected]",
+        "royaltiesInstructionVersion": "0.1",
+        "royaltiesPercent": "10.0",
+        "royaltiesPrimaryPercent": "40.0",
+        "royaltiesPrimaryWallet": "addr1v80gf3xn485sc9qea4keh99klqk70vhdd923c43kh3tud9g2gmu0w",
+        "royaltiesPrimaryOwner": "Praga Khan",
+        "royaltiesSecondaryPercent": "40.0",
+        "royaltiesSecondaryOwner": "Karl Kotas",
+        "royaltiesSecondaryWallet": "addr1v98us4rxzjwxm0w0sl22u64tdw0c0vclufj2qwacgf5dcaqpn85q8",
+        "royaltiesTertiaryPercent": "20.0",
+        "royaltiesTertiaryOwner": "DigitalSyndicate",
+        "royaltiesTertiaryWallet": "addr1vxjrmfpz9eh8ypps8yfh50snuk2e4q0ek60lxgcrt9y3tucxs2yfw"
+    }
+]
+
+## Rationale
+
+With a standardized tagging system, automated marketplaces will be able to support royalties, by leveraging the known tags. By using an offchain location for the instructions, stakeholders will be able to update their royalties' statements in the future. This is important because of changes in ownership through probate, trusts, or sale of intellectual property. Payment addresses can become stale. Allowing for modification to the instructions ensures royalties will continue to be provided long after an artist has passed away.
+
+## Backwards Compatibility
+
+This standard format will include a tag to identify which version the contents are written with. Because the instructions are stored offchain, the stakeholder will be able to update their instruction set as this standard evolves. If Smart Contracts ever do evolve to allow for the automated collection of royalties, these tags should allow for interoperability.
+
+## Change Log
+
+## Version 1.0 – Initial proposal - August 14th, 2021 – Huth S0lo
+
+Copyright
+
+This CIP is licensed under [CC-BY-4.0](https://creativecommons.org/licenses/by/4.0/legalcode)