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AVTizzle | 5 years ago

> it is possible to program the NFT such that the artist takes a chunk out of every resale on the secondary market

I hear this and like the notion, but I'm curious - how does the smart contract know what the sale price was?

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rumblecat|5 years ago

Currently it's done through the marketplace platform, so actually commissions don't track when you sell through other platforms. EIP-2981 aims to standardize this.

Depending on your view of platforms, this could be less than ideal. It should also be possible to modify the transfer function in the EIP-721 contract to be a swap, but this would require a new standard. In any case, it could be gotten around by an escrowed transfer with swap amount being set to 0. I don't think there is a way to prevent this.

qqii|5 years ago

The sale is done in via smart contract, a buyer essentially sends tokens (commonly Ethereum) to the smart contact. Under commissioned scheme the smart contact will create transactions that split the Ethereum between the relevant parties (commonly buyer, platform, seller).