Nifty Gateway allows for very powerful proceed and royalty management, letting you send the money received from primary and secondary market sales to as many different parties as you want.
If you are curating artists, publishing your own works, or sharing money with collaborators for any reason, Nifty Gateway makes it possible in only a few clicks.
There are similarly powerful tools for secondary market royalty management - these can be configured using the manage drops tool, and easily set up on other marketplaces using the EIP 2981 standard or by setting the owner wallet for a collection.
Primary Market Proceeds
The proceeds from a drop on Nifty Gateway can be configured to be paid out to as many Nifty Gateway accounts as you like. Proceeds are paid out in USD, to a user’s Nifty Gateway balance, regardless of the currency that the buyer paid or the payment method they used. Primary market proceeds are paid out after Nifty Gateway fees are deducted.
To set the primary market proceeds for a drop, go to the NFT detail page, click on Primary Market Recipients, and add a new user via their Nifty Gateway username. Then, mark what percentage of after-fee proceeds they will receive.
Please note that proceeds are paid out to Nifty Gateway accounts, which are are separate from Publishers Pages - proceeds can only be paid out to Nifty Gateway accounts.
Nifty Gateway Accounts must first be configured to receive primary market royalties before they can be added as recipients - to see how, view this section.
Nifty Gateway accounts that are set up to receive proceeds can have their Authorized Seller be an entity, such as an LLC or C Corp, or an individual - payouts are supported for both.
There is no need to pay everyone out through a Nifty Gateway account if you don’t want to - if you prefer, you can collect the funds yourself to your own Nifty Gateway Account and then pay them out to your artists or collaborators yourself. This may have tax implications however; we recommend consulting a tax advisor if you are doing this, though this section is not tax advice.
Secondary Market Proceeds
Secondary market fees are part of what makes NFTs special. The blockchain ecosystem has agreed to enforce rules where every time an NFT trades on secondary marketplaces, the creator of that NFT gets paid a portion of the sale, thus earning money in perpetuity for the creator.
These fees can be easily configured for the drops you publish on Nifty Gateway, both for Nifty Gateway’s secondary marketplace, and for other marketplaces where NFTs trade, such as OpenSea or LooksRare. See the following two sections for a full guide.
Setting Secondary Market Fees on Nifty Gateway’s Secondary Marketplace
To configure Secondary Market Fees on Nifty Gateway, go to the NFT detail page in the “Add NFT” section, and scroll down to the secondary market commissions section.
First, you can set the Secondary Market Fee Amount - this is the total royalty that gets charged when an NFT is resold. So for example, if it is 10, then 10% of the resale amount will go to the Secondary Market Fee Recipients every time it resells.
Next, you can set how this Secondary Market Fee amount is split among Nifty Gateway Accounts on Nifty Gateway’s Secondary Marketplace. Here, add users by their Nifty Gateway username, and set what percentage of the total secondary market royalty they will receive. So if you add two users here and give them each 50% of the total royalty for an NFT with a 10% total fee, then they will each get half of the 10% fee every time the NFT resells on Nifty, so 5% each.
You can send NG secondary market royalty fees to as many different accounts as you want.
**Nifty Gateway Accounts must first be configured to receive primary market royalties before they can be added as recipients for secondary market trading fees**
Next, see how to configure royalties paid out on-chain on other marketplaces.
On Chain Royalties - EIP 2981
You can set how royalties should be paid out on-chain for each NFT, using the EIP-2981. To do this, enter a wallet address on the “Add NFT” page.
This will mark on the smart contract what royalty should be paid out for each trade, so that any marketplace that uses EIP 2981 for payouts will send the funds there.
The amount paid out will be the same as the Royalty Percentage amount entered on the NFT detail page. Only one wallet can be set as a recipient this way.
On Chain Royalties - Setting With an Owner Wallet
Additionally, you can configure how royalties are paid out on chain if you mark an owner wallet for a collection.
This owner wallet will be marked as the owner of the smart contract using the OpenZeppelin Ownable spec. This wallet, when connected to other marketplaces that honor that spec such as OpenSea, LooksRare or X2Y2, will be able to set the collections royalty amounts, photos, description, and more.
Ownable is used by most marketplaces, so if it’s important for you that royalties are paid out properly on these marketplaces (and that the collection shows up properly), make sure to put something in this field! See also Smart Contracts and Configuring your Drop.
Cashing Out Sale Proceeds
When you or anyone else receives proceeds from a drop, it will go directly to your Nifty Gateway Account Balance in USD.
From there, it can be cashed out to a bank account or debit card in your local country from this page.
You can get an invoice for the total amount cashed out over a given time period for payouts done to your bank account via Stripe. To get an invoice, click on “Seller Settings” in your account page (or go here directly), then click “Open Dashboard” to view your Stripe Connect Express Dashboard, where you can see all cash-out history and download payment history.
Configuring Nifty Gateway Accounts to Receive Sales Proceeds and Secondary Market Fees
In order to have Primary Market Proceeds or Secondary Market Commissions go to a given Nifty Gateway Account (even your own Nifty Gateway account), that Nifty Gateway account must go through some steps first:
The account must be signed up as an Authorized Seller and also Set Up To Receive Creator Proceeds.
First, they must become an Authorized Seller, which they can do on this page: https://www.niftygateway.com/account/seller-settings, or by clicking their Profile → Account Settings → Seller Settings. This takes a few minutes. Instructions on how are here.
Second, they must then sign up to receive Creator Proceeds. They do this on this page: https://www.niftygateway.com/account/seller-settings, or by clicking their Profile → Account Settings → Seller Settings. It should take about 30 seconds, and only requires 3 pieces of info.
A drop can’t be Published until all the accounts that are set to receive payouts are configured. Every Nifty Gateway Account that receives Primary Market Proceeds or Secondary Market Commissions must go through this step. Remember that Publishers are different from Nifty Gateway Accounts.
Setting this up is usually is quite quick. Nifty Gateway Accounts that receive proceeds can be set up for entities (such as an LLC) or individuals.
Once an account is configured, its seller settings page will look like this.
A list of supported countries that can be paid out via Stripe Connect can be found here.
Tax Forms and Obligations
If everyone you set up to get paid out gets paid out via their Nifty Gateway account, Nifty Gateway handles collecting and distributing tax related information for each account.
This is not tax advice, but if you are collecting and distributing payments yourself, there may be tax reporting obligations. This is not tax advice - we recommend consulting with a tax and or legal professional if you are paying our people using funds you have collected yourself.
Nifty Gateway Pricing with Transactions V1
Nifty Gateway charges 10% + $0.30 on every Tx V1 Primary Market Sale. Primary Market proceeds are paid out to Nifty Gateway user account balances after these fees have been collected.
Here are an example scenario for what fees would be on a Primary Market sale:
If there is an $100 Tx V1 Primary Market Sale:
- NG's fixed fee is $0.30
- NG's percentage fee is 10%, so 10% of $100, which is $10, is taken off as a fee
Then, there is ($100-$.30-$10) = $89.70 remaining:
- The percentages encoded in the Publisher Dashboard will split up the remaining $89.70
- So if an artist is set to receive 10% on the Publisher dashboard, then they will receive 10% of the total after NG’s fees, so they will receive (.1*$89.70) = $8.97 from every sale. If an artist is set to receive 5%, they will receive (.05*$89.70) = $4.485 from every sale.
Understanding Pricing in the Transaction V2 System
If you are publishing an Open Edition or First Come First Serve, that means you will be using our transaction v2 system. It’s important to understand how pricing and proceeds work in the transaction v2 system.
The most important change in transaction v2 is that the amount of money that is split between an artist, publisher and Nifty Gateway is calculated after payment processing fees.
This also means that Nifty Gateway’s fee is a simple 10% and no longer includes a fixed per transaction fee.
Due to laws and regulations around credit card fees, the list price we show to the customer must be inclusive of potential payment processing fees that we will pay. All in, the fee charged to us by credit card payment processors is $.50 and 3% per payment.
This means that the base price (the amount that ends up being split between Nifty Gateway, the Publisher and the Artist) is different then the list price input and shown to the user, because the list price input and shown to the user must be inclusive of payment processor fees.
For example, if the list price input for an NFT is $1, then the base price will end up being $.49. This means that a user who purchases the $1 NFT with a credit card will pay $1, but a user who purchases the $1 NFT with Nifty Balance (or any other 0 fee payment method) will get a $.51 discount and pay $.49.
Proceeds to you and to the artist are calculated on the base price, not on the list price.
So, if an NFT is listed for $100, and the proceed split between the Publisher and the Artist is 89/11, the total proceeds paid out every time that NFT is purchased during the primary market sale will be:
10% fee to NG 10% fee to Publisher 80% to Artist
To calculate the base price that will get distributed from the List Price input into the Publisher dashboard, use the formula below to calculate the base price.
Remember that the base price is what gets split between NG, Publisher and Artist, and not the list price.
Does the artist make less money in TX2 if a user pays with a credit card?
No. The artist proceeds amount is static and is calculated before fees are added.
Does Nifty Gateway make less money in TX2 if a user pays with a credit card?
No. The nifty gateway fee amount is static and is calculated before fees are added.
What formula is used to calculate artist and NG fees in TX2?
$ccSurchargeFlatFee = 0.50$
$ccSurchargeBasisPoints = 300$
3% is 300 basis points.
$ArtistAndNGFees = (listPrice * quantity - (ccSurchargeFlatFee * quantity)) / (1 + (ccSurchargeBasisPoints / 10000))$
What formula is used to calculate artist and NG fees in TX1?
Artist payouts in TX1 are defined as the remainder of
list price - (niftyGatewayFee + paymentFee). For Publishers, Nifty Gateway’s fee is 10%.
$ccSurchargeFlatFee = 0.30$
$ArtistProceeds = (listPrice * 0.9) - ccSurchargeFlatFee$
Occasional Rounding Issues
Please note that you might occasionally see a price that is off by $0.01 when a user is purchasing multiple quantities with Tx V2. This will not affect the payout amount to either you or the artist.