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Creating Royalty Tokens

Overview

Revelator has introduced a new way for settling royalty payments using Royalty Tokens—a smart contract that automates royalty distribution to multiple parties on blockchain. This article will take you through creating a royalty token for an eligible track in your catalog.

Royalty Tokens are a product of Revelator's blockchain protocol — Original Works

Prerequisites

Royalty Tokens can be created for tracks only, while other asset types will be available to tokenize in the future. Before creating a royalty token, please ensure the following conditions are met:

  1. Talk with our customer support team about enabling Royalty Tokens for your enterprise.

  2. Your user account must have "Editor" permissions for Catalog & Asset Management and Royalty Accounting.

  3. Tracks you intend to tokenize must meet the following requirements:

How To: Create a Royalty Token

Royalty Tokens are currently locked to receive 100% of all track level reporting revenue, from all services, countries, formats, and channels. In the future we plan to allow the creation of term-based Royalty Tokens on par with our standard digital contracts.

1

Select a Track to Tokenize

Find a track from your catalog that meets the following requirements:

If any of the above requirements are incomplete, you will first be required to complete them before your track becomes eligible to tokenize.

Open the track and click to Mint Royalty Token from the Original Works summary card.

2

Review Track Details, Set Token Supply & Payout Rate

Track Details

You can view the currently selected tracks associated metadata by clicking on the track itself. This will open a modal window containing the tracks current metadata, credits and releases it appears on.

If you notice anything incorrect, we recommend first editing the tracks metadata before proceeding to create your Royalty Token.

Token Supply

By default we set a token supply of 10,000 tokens. This ensures you have liquidity for distributing split % to each of your Royalty Token payees. You can update your token supply by opening the token settings.

Choose from preset amounts or set a custom value to suit your needs.

Token supply cannot be changed once your Royalty Token has been created.

Payout Rate

The payout rate is the percentage of royalties paid by the payor to the current payees on the Royalty Token contract. The remaining share of royalties is withheld by the payor.

You can set any value between 1% and 100%.

Setting a payout rate of 90%, means the payor will retain 10% of every $ earned by the track before paying out the remaining 90% to be split by the current payees on the Royalty Token contract.

3

Add Payees

Similar to our regular contracts, simply add payees and assign their split %. The only extra input is whether or not the payee has a wallet address connected to their account.

  • If a payee already has a wallet, great – their wallet address will be automatically used.

  • If a payee doesn't have a wallet, a Royalty Vault is created on-chain to store their tokens until they create or connect a wallet themselves.

  • If you know the payees wallet address, you can add it manually to their account details.

A Royalty Vault is simply an on-chain smart contract that stores Royalty Tokens and funds attached to the payees account until they create or connect a wallet and claim them.

4

Review & Mint Your Royalty Token

When ready to create your Royalty Token, click Review.

You will be presented with a summary of the Royalty Token you are about to mint on blockchain. It's important to review these details, and ensure the splits are accurate, as once it's recorded on-chain it becomes immutable.

If everything is correct, click Mint Royalty Token to queue your Royalty Token to be minted.

Expected Outcomes

Royalty Token Status

After confirming to mint your Royalty Token, it may take a few minutes before it is confirmed on blockchain. You can check it's status from Royalties → Royalty Tokens.

Royalty Tokens listed here may have the following status:

Status
Meaning

The Royalty Token has been queued for minting and will be minted within the next few minutes.

The Royalty Token is linked to receive royalties assigned to the asset it represents.

The Royalty Token encountered an error when attempting to mint on-chain.

Payees Receive Royalty Tokens

Once your Royalty Token has been minted successfully, the payees you added will automatically receive the split % of tokens you assigned them.

  • Payees will receive an email notifying them of the split % of Royalty Tokens they've received.

  • If a Royalty Vault was created for them, they’ll receive a second email with instructions on how to claim the tokens via their Payee Portal.

Learn more about Receiving Royalty Tokens.

Frequently Asked Questions

Does it cost anything to create a Royalty Token?

Royalty Token creation is included FREE as part of your subscription.

When interacting with blockchains (we support Base & Polygon) to perform transactions, usually network fees called “gas” are incurred to post and validate transactions on-chain. Transactions generally cost less than $0.01 to perform in most instances.

What types of assets can be tokenized?

Currently just tracks, and they must meet the following requirements:

More asset types will be available to tokenize in the future.

What if my payees are new to web3?

Onboarding Payees To Royalty Tokens

When Payees are new to web3 and do not yet have a wallet, we will auto-generate a Royalty Vault attached to their portal account to receive and store their Royalty Tokens and royalties paid on-chain.

When a token is minted and vault created for a Payee, the'll receive emails with instructions for how they can take custody and claim these tokens by connecting a wallet to their account.

They can then download Revelator Wallet to view and manage their tokens from their, and receive their royalties directly.

Check out our article on Payee Wallets for more.

Can I disconnect a Royalty Token from an asset once minted?

Yes!

If you made a mistake or ever wish to undo the connection between an asset and Royalty Token, you may contact support@revelator.com to manage this for you.

Once disconnected, you can either mint a new Royalty Token or use a standard contract to distribute royalties to payees.

What blockchains and cryptocurrencies do you currently support?

We support Royalty Token minting on Base and Polygon, paying royalties on-chain in USDC or USDT (on request).

If you would like to mint your Royalty Tokens on a different blockchain, please contact support@revelator.com.

What is an ERC1155 token?

Understanding ERC1155 Tokens

ERC1155 is a multi-token standard on the Ethereum blockchain that allows for efficient creation and management of multiple types of tokens within a single contract. Unlike ERC20 or ERC721, which are designed for fungible and non-fungible tokens respectively, ERC1155 supports both. This standard also enables batch transfers, reducing transaction costs and increasing efficiency.

Additional Resources

PreviousRoyalty TokensNextReceiving Royalty Tokens

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