Hacker News Reader

Hacker News

Comment by OGWhales | Hacker News Reader

Parent Full thread

OGWhales

> With NFTs they can get a cut of every transfer indefinitely

How does that work?

Also, what is to stop people copying it anyway and what is to stop artist from getting underpaid?

All serious questions that I'd like to see answers to but don't understand how NFTs would solve any of them.

View on HN

Royalties are built into marketplace smart contracts. Individuals can do P2P trades where the artist doesn't receive any royalty but this doesn't happen very often. Anecdotally, it typically only happens on large deals and people who do a P2P trade often send the artist their royalty anyway (but still benefit from not paying the OpenSea fees for example)

Not sure what you mean by the second question

Wait, so the purported royalty benefit of wrapping this in a contract can be circumvented, but the NFT tech is still good because people who circumvent this kindly send the artist the royalty anyway? Would they not be able to send the same courtesy royalty if no NFTs were involved?

Not what I was trying to say at all, I'm saying that NFT tech is good because the default option is that the artist gets royalties and this happens probably >95% of the time?

I think I felt compelled to mention that people send it anyway because it's good behavior and not all scams/crimes people say it is. In general I think the royalty thing is just one nice bonus of using smart contracts

please see “ideas on a shelf”

Idiomatically, "shelved ideas". Shelving can be more abstract, but generally it's not idiomatic for abstract-concepts to be "on a shelf".

Language aside, I think you're being inconsistent with that concept: there are better solutions for compensating artists than NFT's already, so it's inconsistent to say that you want active-solutions as a justification for working on an less-active-solution.

I'm replying specifically to "Would they not be able to send the same courtesy royalty if no NFTs were involved?" which absolutely there is not already a satisfying solution in place. No thanks for the language lesson

Ownership transfer is done by a function call. The function often has extra logic like % of the funds for the transfer going to the artist. I guess you can cheat by sending a small amount in the transfer and seperately paying the seller the rest but then you make the thing you bought seem cheaper in the official records so that's in most cases counter-productive.

So I guess the next goal here is a startup to implement this as a smart contract to go full circle. The market will do it because any transaction fee is a hindrance to it's liquidity and is a possibility to undercut someone else.

Reply on news.ycombinator.com