Primer on NFTees, Replicas, Merch Tees and NFTee royalties
OfficialNFTees is proud to announce the release of our Merch Tees. The product guide below is designed to be a quick summary of our product offering and members of the Tees community a full picture of our ecosystem.
NFTee — this is an NFT that looks like an 8-bit t-shirt. This represents the ownership of not only the NFT but the Replica Tee. NFTees are sold on the Fantom NFT marketplaces Zoocoin and Paintswap. Ownership of these NFTees makes the holder eligible for royalties (read on for more details).
Replica Tee — this is the exact replica of the NFTee in the physical world. When you buy the NFTee, you (the sole owner of the 1/1 NFTee) get the Physical Replica for free. Tees produces the replica and ships it to the address of your choosing. Ownership of these Replica Tees is verifiable on the blockchain. Only one Replica of each NFTee is ever produced.
Merch Tee — this is a merchandise version of the Replica Tee, which can be purchased by anyone, regardless of who owns the NFTee. See below for differences in Merch Tee attributes, which can be compared to and contrasted with the Replica tee attributes above. OfficialNFTees also sells TEES-logo Merch Tees. All Merch Tees are available for purchase here: https://nftees-store.myshopify.com/
Merch Tee Royalties — NFTee holders earn royalties on the sales of Merch Tees within the Tag Tiering of NFTees held in their wallet:
- Black Tag — 10%
- Silver Tag — 15%
- Gold Tag — 20%
Royalties are determined by pooling overall Merch Tee revenues by Royalty Tier (Gold-Tag holders earn royalties on Gold-Tag Merch Tee sales, Silver-Tag holders earn royalties on Silver-Tag Merch Tees, etc). Each holder will earn a proportion of royalties based on the following formula: Total Revenue for Tag Tier x Tier Royalty % / # of Holders in the Tier x Number of Tees held in wallet at month end (11:59pm EST). See example below.
Gold-Tag Royalty example:
In the first month of Merch Tee sales, assume the following is true:
- Tees sells 10 Gold-Tag Merch Tees during the month
- Merch Tees sell at a price of $100 each ($100 used for simplicity of illustration)
- There are 5 Gold-Tag NFTee holders at the end of the month
- You hold 2 of 5 Gold-Tag NFTees at the end of month
The total revenue earned would be $1,000 = $100 per tee x 10 tees sold. The total royalty to be shared with Gold Tee holders would be $200 = $1,000 total revenue earned x 20% royalty pool for the Gold-Tag holder group. You, the holder of 2 of the 5 Gold-Tags at month-end, would receive $80 = $200 Gold-Tag royalty pool x (2/5). Royalties will be calculated monthly and paid quarterly.
If, as an example, you also held 4 out of 20 Silver-Tag tees, and 30 Silver-Tag tees were sold at $100, your royalty would be determined as follows:
30 tees x $100 per tee x 15% Silver-Tag royalty percent x 4 tees in your wallet / 20 total silver tag tees = $90.
NFTee Royalties — The NFTees Collection on Paintswap currently generates a 7.5% royalty on all primary and secondary sales. 5% or 2/3 of this royalty will be pooled for distribution to NFTee holders, and the remaining 2.5% or 1/3 of this royalty will be earned by OfficialNFTees. Royalties from NFTee sales will be distributed to the holders on a periodic basis through the web3 claim functionality on the NFTees website (to be released in December 2021).
If you are a current tee holder or are interested in becoming one, please reach out to our team directly in the OfficialNFTees discord: https://discord.gg/6QWsVJDezS
Thanks so much, Fantom Family!
$TEES $FTM #MerchTees #FantomFamily #NFTees