For the release of his BlackDave @ wavRoom NFT, BlackDave, one of the very first artist to experiment with music NFTs and a leading figure of the movement, decided to reward his early collectors with a share of the revenue generated by the NFT release on Glass.xyz, in collaboration with wavWRLD.
The concept of sharing revenue with the collectors that have supported an artist has been floated around the Music NFT community for a while, but no one had yet figured out how to execute that redistribution. BlackDave being a part of Reveel’s early access users, we were thrilled to explore this use case with him and figure out how to use Reveel’s revenue share protocol (”Revenue Paths”) to deliver on his vision.
“One of the most exciting things about using NFTs as a creative, is that I’m able to create unique scenarios for my fans and supporters. For instance, I can allow them to earn when I do, as early and as often as I’d like. Sharing revenue on-chain with fans allows them to be even more deeply connected to and interested in my success as an artist. Because when I win, they win as well.”
The first step was to identify which collectors BlackDave wanted to reward. This was made easier due to the fact that BlackDave had airdropped the Gundam Key NFT to all his collectors as of early June 2022. In addition to Gundam Key holders, he also wanted to include collectors from his free mint drop on Sound.xyz, WTF.
Having identified the scope of the collectors that were gonna be rewarded, we had to collect all the wallet addresses & figure out the mechanics of the revenue share.
We used Reveel’s beta feature, Collector Insights - which allows creators to track all of their token holders - to isolate Gundam Key & WTF holders. These two collections forced us to test the limits of our tracking feature, as the Gundam Key collection is a suite of four 1155 tokens on a single smart contract and WTF is a 50 piece edition of 721 tokens living on a shared “BlackDave on Sound” smart contract (with his other Sound NFTs). This created some complexity around singling out the right transactions to identify the current holders and we identified valuable improvements that we’ll be implementing to allow all creators to more easily track their collectors & segment them accurately, regardless of the NFT smart contract architecture.
We eventually identified the 186 tokens and the 154 unique holders collecting them.
With 30% of the project’s revenue shared between 186 tokens, every holder of a single token would receive ~0.16%. If a holder had 2 tokens, their share would be ~0.32% and so on.
Setting up the Revenue Path (Reveel smart contract with all the splits) was the simple part. We were able to upload a CSV file will the list of recipients and their respective shares. The final revenue shares are as follows:
One a Revenue Path is created, ensuring that the funds will flow through it for a specific NFT project is simple. When deployed, the Revenue Path has it’s own address (BlackDave @ wavRoom: 0x96417ADEB3DDe0c8450A8e56386c02DD6fD568fd).
The wavWRLD team simply had to list that Revenue Path address as the Payout Address when uploading the files to Glass.xyz and entering the drop information.
Setting a Revenue Path as the Payout Address of an NFT smart contract ensures that all the revenue generated from that NFT project, primary & secondary sales, will flow through that Revenue Path and will trustlessly be shared between all the recipients listed.
The 159 recipients listed on BlackDave’s Revenue Path can each withdraw their share of revenue when ever they chose to, independently of each other, with no preceding action required by any of the other parties, and with no time of volume constraints. In other words, as soon as funds arrive in the Revenue Path, they are automatically redistributed to all parties (no intermediary distribution transaction is needed) and available for withdraw.
We designed the Reveel revenue share protocol in that way for several reasons:
First: Go to the URL of the Revenue Path & connect your wallet
Second: Click the “Withdraw” button & confirm the transaction with your wallet
Not only is this the biggest on-chain revenue split that has been implemented to date, we also think this will pave the way for how creators choose to interact with their communities. Redistributing a share of earnings to select holders as a reward, incentivizing fans in the success of a project, or funneling a portion of income to community treasury, these are only some the possibilities the Reveel hopes to enable creators with as they experiment with our technology.
When ownership is pushed to the edges of the network, to its users, collaboration becomes shared property. And shared interest becomes shared equity.
If you’re interested in learning more, would like to get involved, or have a need for what we’re building, we encourage you to reach out.
Our current version of the Revenue Share Protocol (v0.1) is in open beta and is totally free to use. You can access it here:
Our suite of Creators Analytics (v0.1) is currently accessible by invitation only. You can apply for early access here.