Minimum Threshold Price


Problem to Solve:

Royalties should only be applicable if a sale occurs above a certain price.

Royalties were a tool for artists to contract services of art collectors, distributors, etc while ensuring they share in the profit of their work. This is also why royalties were only paid if the artwork sold above a certain price, and there was often a cap on the amount or time-duration for which artists could claim royalties. Something that’s shockingly missing from current NFT royalties.

Today, if you sell for less than your mint price you are still required to pay royalties. And for transactions without any meaningful upside in royalties are also taxed.

Possible Solution:

Creating tools/marketplaces which have a minimum threshold above which royalties are enforced.

For example, if a piece of art was minted for $100, the artist should be eligible for resale royalties if it sells above $1000. Btw, this is how art royalties were originally designed. Yep, they’d figured this out back in the 1890s.

The exact threshold price should ideally depend on the initial mint price but any arbitrary benchmark is a good starting point as long as it only taxes transactions where some meaningful upside is created.


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