In this article, let’s explore the unique feature and benefit that the original listings are going to get from the platform of Flamingo. If you have any question, please drop us a line in the comment box below or at [email protected]. The Flamingo’s team is happy to assist you!
What makes Flamingo different from other platforms?
There are many differences originated from the desires to make art selling, trading and investing more transparent and accessible for everyone. Some notable ideas are:
- Physical asset and digital NFT are bundled into a single offering which helps with authenticity, transparency and liquidity.
- The ‘Vault’ service provides tax benefits and reduces unnecessary delivery cost and environmental impact.
- The smart contract from NFTs rewards lifetime royalty payments to the original listers on Flamingo
- …
Since this post is about the benefit of lifetime royalty, let’s dig in a bit deeper about this concept.
What is lifetime royalty?
The Flamingo’s lifetime royalty is a payment made by the buyer(s) to the original lister that lists a particular asset firstly on the platform of Flamingo, for the right to ongoing use of that asset.
For instance, if you are an artist or a collector who originally lists a painting for sale, you will obviously get the proceeds from the first sale of that item. However, the earning does not stop there. Whenever a new owner resells that painting to another buyer, you (the original lister) will get 1.5% royalty payment of the final purchase.
A Simple Illustration:
- Year 2022: A lists a painting on Flamingo
- B buys the painting from A for $1,000
- C then buys the painting from B for $2,000
- D then buys the painting from C for $$5,000
- …
After the painting gets sold to D, A (the original lister of the painting) will get a total of $105 royalty payment from C ($30) and D ($75) besides his initial $1,000 revenue from B. The lifetime royalty payment will be facilitated automatically by a smart contract embedded with the painting’s NFT.
Limitation:
The lifetime royalty only works when the bundled NFTs of the physical assets are traded. In the case that the physical assets are sold separately in a secondary market or in private sales, the benefit of NFT and lifetime royalty will not be continued.
However, the physical assets will not likely be sold separately because NFT provides so many visible benefits such as traceability and liquidity to the physical items. Hence, we are confidence that your lifetime royalty will have a high chance to continue in a long time.
Is it not fair for new owners?
We have tried to come up with a sustainable model for all stakeholders. From our perspectives, the lifetime royalty payment for the original listers is a normal and encouraging practice. Without them, the future trades may not be visible.
Benchmarked with other NFT platforms (i.e. OpenSea, Rarible …) where the royalty is as high as 10%, our current royalty fee is considered fair to most people.
What should you do?
Don’t wait! Get your owned art and collectibles listed on Flamingo as soon as possible. The lifetime royalty is a lucrative passive income that will fulfill your dreams later on! Should you have different thoughts, please send us an email as we continuously listen to the feedbacks from community.
*The royalty fee may subject to change in the future. Flamingo will get it updated HERE.
Originally posted 2022-09-26 17:12:50.