Royalties are now on Tokhun!

Tokhun is an NFT Marketplace built on the Cardano blockchain, established after the Mary Hardfork in March 2021. Initially, it was designed to be an NFT minting platform but rapidly evolved into a smart-contract-driven NFT marketplace. At Tokhun, we strive to create an intuitive, user-friendly environment where users can mint, buy, sell and manage their NFTs. The goal was to create a more robust platform while maintaining high on-chain liquidity for NFT projects.

Tokhun minted some of the very first Cardano NFT’s. By integrating minting and selling on the same platform, we created a seamless environment between users and their NFTs.

At Tokhun, we strive to provide the best user experience. Upon launching the site, we received incredible support from the community making Tokhun the fastest growing marketplace in the ecosystem. As of December 2021, Tokhun’s total sales volume is over 2 million ADA. Tokhun is quickly becoming one of the largest NFT marketplaces on Cardano.

Royalties on Cardano

Royalties on Tokhun honor the CIP-27 standard known as the Cardano Improvement Proposal #27. We ensure this capability by directly integrating the royalty payout feature into our smart contracts. Although it is a CIP, it is not implemented on the protocol level, meaning royalties will not apply with peer-to-peer transactions. It is solely at the discretion of the marketplace to implement NFT royalties on their platform. Please be sure to confirm that the marketplace you are dealing with has implemented CIP-27 and honours artist royalties before buying or selling an NFT on their platform. Tokhun is proud to uphold the CIP-27 standard and recognize all artist royalties within our marketplace.

When minting an NFT on Cardano, a Policy ID is required. Tokhun enables the ability to create personalized minting policies. When creating a new policy ID on Tokhun, users are presented with the option to register for on-chain royalties. Two fields are required to register royalties, a royalty percentage rate, and a royalty payment address.

Any NFTs minted under that policy ID will have the specified royalty information associated with it. Every time that asset is sold on Tokhun thereafter, the set royalty percentage will be distributed to the embedded payment address.

Royalty Payout Rules at Tokhun.io

• When a seller creates a sale, they must enter a price per NFT in the sale
• If the NFT has royalties attached to it, the amount that would be paid in royalties will be clearly shown at the asset level and in the profit breakdown
• We support royalties in bundle, therefore every NFT could apply royalties
• Seller can control how much in royalties will be paid by setting a price per NFT
• If the royalty amount is less than 1 ₳DA — royalties won’t be paid
• We charge processing fee of 1 ₳DA from every royalties collected, if the royalty amount is greater than or equal to 2 ₳DA .

Example Scenario

• The first asset has a royalty of 5%, being sold for 500 ₳DA means 25 ₳DA would be paid in royalties (of which Tokhun.io will receive 1 ₳DA and 24 ₳DA will be distributed as royalty)
• The second asset has a royalty of 2%, however it is being sold for 5 ₳DA which results in a royalty amount of 0.15 ₳DA, which is below the minUTXO of 1 ₳DA — therefore this royalty won’t be applied.

If you have any questions about royalties please feel free to reach out on Twitter or Telegram! Thanks for all the support!