EIP2981 Royalty Standard

Enhancement to the ERC721 a standardized way to handle royalty payments for ERC721, includes publicly viewable royalty. Improving batch and minting. Simple Royalty standard that is one step closer to being implemented and used widely.

EIP-2981 allows for a digital asset to present a simple, standardized, and GAS-efficient solution to any 3rd party about what the expected contractual royalties to be paid out. In essence, a focus on simplicity with an aim to help wider adoption from marketplaces.

Solving challenges

Challenges that will impact and improve the experience of NFT creators

• Standardize royalty payments across platforms

• Every marketplace has it’s own royalties and none of them works on the secondary marketplace

• EIP-2981 unifies the royalties so they are set and provides a function that returns the amount to creators address

• Improve batch minting and make it cheaper

• Create new method of minting new NFT

Source: https://mintable.medium.com/grant-from-ethereum-foundation-ecosystem-support-eip-2981-royalties-for-nfts-and-a-way-to-mint-dfaa6cb3e08a

Some of the use cases of EIP2981:

• Atypical, fixed % royalties e.g., 12.5% of all sales go back to artists on KO

• Decaying royalties — this could be time-based, ownership-based or any other variants as sales reduce the number of times an NFT changes hands

• Dynamic royalties — changing over time or based on the sale amount

• Upgradable royalties — allowing an entity or owner to modify any royalty

• Stepped royalties, e.g. when sold for less than $100 don’t provide royalties

• Governed royalties — ownership of funds is dictated by a DAO, imagine that the receiver as a DAOs treasury …

• Collector and artists royalties could even use it, it’s not specific to a specific persona. Source: https://medium.com/knownorigin/eip-2981-simple-and-effective-royalty-standards-for-all-dbd0b761a0f0

Further reading

• Implementation: https://github.com/ethereum/EIPs/issues/2907

• Full EIP: https://eips.ethereum.org/EIPS/eip-2981

• Draft EIP: https://github.com/VexyCats/EIPs/blob/master/EIPS/eip-2981.md

• The story behind EIP2981: https://medium.com/knownorigin/eip-2981-simple-and-effective-royalty-standards-for-all-dbd0b761a0f0

• Royal Registry https://royaltyregistry.xyz/lookup