TL;DR : Royalties system is broken. Radical protocol implements Harberger, an economic design that allow NFT creator to earn streamed passive income, paid by current NFT holder, on his creations.
Problem : NFTs are boring
- While NFT re-defines the concept of property, the economic mechanisms attached to it belong to the past.
- Mint your NFT and perceive upfront payment for its sale. That’s all. We were already doing this with shells thousands years ago.
- At best, you could expect royalties on future sales without any certitude on the frequency and amount of those hypothetic incomes.
- Those royalties are technically badly implemented.
Solution : Harberger as the layer base of the NFT economy
Radical protocol allows NFT creator and collectors to mint Radical NFT and collect patronage on top of it.
(1) Radicalize your content.
- Mint a Radical NFT on Radical protocol
- After minting, creator get 2 tokens : the radical token and the patronage token.
- He will most of the time sell the radical token and keep the patronage.
→ The radical is the property token. It is used like a classic NFT (Flex with it on ShowTime, add the piece to your Crypto Voxel land, etc).
- As soon as user holds this token, he needs to list it on a NFT marketplace. This token will always be for sale.
- The radical price he attributes is the instant buy price. At any time someone can buy the token for this amount. He will get 100% of the sale price.
- The radical owner needs to pay a patronage on this radical token. The patronage is a fixed percentage - set initially by NFT creator.
- The patronage is streamed continuously from radical owner to patronage collector.
→ The patronage token is the patronage collector token.
- Patronage owner collects the streamed income paid by radical owner.
- The patronage amount is shared :
80% of the patronage is collected by patronage owner
10% is collected by Radical DAO.
10% is distributed to previous NFT collectors. This distribution follows a bonding curve. The sooner you collect the token, the bigger your patronage shares.
ie : Bob mint a radical NFT with 10% patronage rate.
He lists the radical token (available on all marketplaces) at 10 ETH ; and keep the patronage.
Alice buys the token at 10 ETH.
Alice owns the radical and list it at an instant buy price of 20 ETH.
Alice pays 2 ETH per year to Bob.
(2) Manage your patronage and radical tokens.
- Interact with radical smart contract via our app or any NFT marketplaces ; mint, buy, change radical price, deposit patronage provision, claim patronage.
- Collect the tastier radical and patronage tokens.
We got 3 certitudes that guide the way we build :
- NFT creator will always want to generate larger passive income from their activity
- NFT collector will always want to generate larger passive income from their activity
- NFT economy needs to be built by a proper DAO
For NFT creators :
- Life long passive income on their creations
- Streamed income
- Flexibility between (1) massive upfront payment & light annual income or (2) modest upfront payment & massive life long income (depending of patronage rate selected)
For NFT collectors :
- Life long passive income for previous investments
We are a passionated, complementary team. We love working together on promising projects at the intersection of DeFi and NFT.
- Rosco : smart contract lead. Senior Ethereum developper creator of @ revoke.cash, truffle-assertions, truffle-plugin-verify, CashScript // Software Engineer @ GeneralProtocol
- Stefan : full stack developper. Web3 full stack with front-end expertise
- Théo : product and business. Doing business at @ Aave, NFTX and Balancer prize winner at ETH hackathons, working on @ BunchyProtocol
What we have done
- Built radical market place for ENS Domain name. Won ENS Prize at ETH London Hackathon
- Built radical market for all kind of NFTs at NFT Hack (48 hours). Contacted by Eric to strengthen synergies with Rarible.
What we bring to Rarible ? A whole new class of assets minted and traded on the app
30% of our future gov token is given to the Rarible treasury + $RARI holders.
We mint Radical and Patronage tokens on Rarible
Radical and patronage tokens are listed and can be traded on Rarible
→ The UX related to buying a Radical NFT is different from buying a classic NFT. We will support Rarible in technical and design integration ; NPM package, technical documentation, etc.
We integrate a CTA to the Rarible page of the creator wallet (Previous work, average price, twitter verification, social dimension) on our app.
There is no competition between Radicle and Rarible.
Rarible is the leader of NFT minting and trading industry, we will be the one of the Harberger economy layer base.
What we are waiting from Rarible ? Skin in our game
- Grant of $40k, used that way :
→ 10k for graphic identity
→ 15k for smart contract deployment and technical review
→ 15k for builders
- Product and partnership exposition
Grant details :
- The builders grant is vested vested : $5k released at beginning ; $5k at mid journey ; $5k at alpha release.
- We engage to be represented and provide summary of our progress during Rarible calls.
- This oral summary will be competed by a written summary published behind this proposal.
- We are confident to have a functional alpha reviewed and released at day 70.
- To be disclosed
We consider ourselves “independent contractors” of the Rarible DAO and will report taxes accordingly.