About SeatlabNFT: Royalty Splits

One of the revolutionary benefits of NFTs — whether in the world of digital art or, in this case, ticketing — is the ability to set royalty splits.

Tim Bishop
Tim Bishop
February 23, 2022
4
min read
Virtual phone
SeatlabNFT

An NFT event ticketing marketplace helping artists foster closer connections with fans, eliminating fraud and reducing the impact of scalping.

One of the revolutionary benefits of NFTs — whether in the world of digital art or, in this case, ticketing — is the ability to set royalty splits.

What is a royalty split?

An NFT royalty split is when a set percentage of resale revenue is sent to a royalty beneficiary specified when an NFT is minted.

For example, you could set a royalty split of 20% when minting NFT tickets using our marketplace, which would mean 20% of any resale would be sent back to a wallet address of your choosing. As an event organiser, you could set up multiple beneficiaries; you could choose to have yourself and each of the artists performing at your event receive royalties every time an NFT ticket is resold.

You can even specify how much each beneficiary receives.

Benefits of royalty splits

Well, the first is obvious. It opens up a new revenue stream for event organisers. Every time a ticket is sold on the secondary market, you profit, earning you more in total ticket revenue without offering anything new. Increasing ticket revenue in this way isn’t possible via traditional ticketing methods.

Currently, touts and scalpers are the ones who profit (massively) from secondary ticket sales; we feel that money should go back to the people who make events possible in the first place.

How do royalty splits work?

This is all made possible thanks to smart contracts. Gen-2, and especially Gen-3 blockchains like NEAR, which SeatlabNFT is built on, provide the platform to develop decentralised apps that can deploy smart contracts like ours. A smart contract is self-executing code that governs how NFTs work.

Smart contracts also remove the need for a trusted third party to ensure things are fair. You can be sure that you will receive your secondary sales royalties no matter what. No intermediary has to collect and distribute them; it’s all handled by our smart contract.

What else can royalty splits be used for?

In extreme cases, where certain events are heavily targeted by scalpers deploying bots to automatically purchase as many tickets as possible to sell them on the secondary market at massively inflated prices. Royalty splits, amongst other things, can be used to stop it from happening. Or, at least make it impractical.

If an event organiser sets the royalty split at 100%, it would drastically reduce the incentives scalpers have to buy and resell event tickets, as our smart contract would send all of the resale revenue back to the royalty beneficiary.

Scalpers could, in theory, still operate, but what would be the point?

Join the NFT ticketing revolution

If you’re an event organiser looking to change how you ticket your events, make sure you’re kept up to date with everything happening here at SeatlabNFT.

We’re as excited as our community about what’s to come, so stay in touch and get involved.

If you’d like to know more about how SeatlabNFT can help with your NFT and blockchain ticketing needs, reach out to our customer support team by emailing support@seatlabnft.com

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