Introducing Royalty Protocol on Oraichain

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Oraichain

5 min readSep 28, 2021

The essential protocol for those who live to create. Web 3.0 Economy brings opportunities for creators of all kinds, and Oraichain is redefining the creatorship and ownership to empower contributors within its AI Ecosystem and beyond.

What is Royalty?

Those who live to create want not only the appreciation of the crowd but also financial empowerment.

Royalty has been a great way for artists, famously in the Music industry, to obtain their rights in any future promotion or resale of their works. With the irresistible coming wave of Web 3.0 economy — the economy of creators, there is an inevitable need for a decentralized royalty protocol that helps creators to collect their royalties in an immediate and transparent way.

There are several sub-projects that try to implement a royalty standard for Marketplace on-chain. The most well-known one is the ERC-2981 Standardized royalty payment via Ethereum Improvement Proposals. This is a standard for all other markets of on-chain assets to get royaltyInfo and execute payment to creators/owners whenever a sale occurs.

Despite the effort, the ERC-2981 NFT Royalty standard is still limited in its definition of creators. Many actual implementations of the Royalty mechanism in their NFT marketplaces use similar or different derivatives. For example, Rarible, Foundation, Zora with similar one-creator royalty; Superare with royalty for one-creator and sequential collectors.

Oraichain aims to expand the definition of creators and owners of on-chain assets and to adapt a Royalty mechanism for all of the potential Dapps within its AI Ecosystem. For this purpose, Oraichain has designed and developed its own Royalty Protocol on Oraichain Mainnet.

Royalty Protocol on Oraichain

The Royalty Protocol on Oraichain defines (1) who can receive royalties, (2) how they can receive royalties at every market sale, and (3) a data source (data point API) as an Oracle service for other projects that want to use royalty information.

There are “creator” and “owner” types of people who can receive royalties when involving in a Dapp or an on-chain asset. In the case of a Dapp, the people who contribute to the building of the app are the creators, the people who own the Dapp at a specific time are the owners. In the case of an asset, the people who contribute to the making of the asset are the creators, the people who own the asset at a specific time are the owners.

Creators of a Dapp may include AI model provider, AI API provider, Oracle provider, Test case provider, Dataset provider (for training AI model), and many possible contributors depending on the Dapp. The royalty ratios are set by each creator, while all make up the final ratio for the Creator. By default, this is about 0–10%.

Creators of an asset like an NFT using an AI model may include AI provider (which contains a list of other contributors), UI provider, the one who pays a gas fee to mint the NFT, and (again) many possible contributors depending on the project.

The creators have a permanent royalty, while the owners have a temporary royalty — paid to them as long as they are still the owners.

The Royalty Protocol on Oraichain while implements a set of atomic contributors (AI provider, Oracle provider, etc), it defines an abstract protocol for all potential Dapps which utilizes Oraichain’s AI Ecosystem. When simplified, it’s similar to other existing royalty mechanisms.

Application of Royalty Protocol: Data Hub

The first application of Royalty Protocol will come with the launch of Data Hub on 30 September. For this particular application, the creators and owner are defined as follows:

The annotators for each dataset can be the creators of the dataset and will receive their royalties whenever the dataset is used or resold. Royalty ratios depend on the contributing proportions on the completion of the dataset.

The owner of the dataset is the one who requests to make the dataset.

Application of Royalty Protocol: aiRight

Following Data Hub, aiRight will adapt Oraichain’s Royalty Protocol to benefit NFT creators and owners. The launch of this new version of aiRight Marketplace with Royalty Protocol is expected in the next week. Wait for the official announcement in order to adapt your NFTs into the new Marketplace.

The creators of an NFT include the one who mints an NFT and an AI Provider.

The owners are those who own the NFTs at a specific time. Newly created NFTs or have never been sold, the owners are also the creators. Once an NFT is sold, its creators and the current owner will receive their royalties. After that, the NFT switches to the new owner while its creators are unchanged.

Royalty Protocol as Oracle service

Oraichain will provide access to royalty information of any assets (NFTs or Dapps) as an Oracle service. This service will come to Oraiscan in Q4, 2021.

About Oraichain

Oraichain is the world’s first AI-powered oracle and ecosystem for blockchains. Oraichain data oracle platform aggregates and connects Artificial Intelligence APIs to smart contracts and regular applications. Founded by Dr. Chung Dao, Oraichain’s mission is to be the portal between AI and blockchain technologies, serving as a foundational layer for the creation of a new generation of smart contracts and Dapps leveraging AI..

Unlike regular oracles using raw data, Oraichain’s AI oracle uniquely uses AI APIs to process and create data on-the-fly via virtual machines on smart contracts. Data quality, reliability and security are enhanced by using test cases, which help to avoid intermediaries, increase trust and open up unprecedented application functionalities.

Beyond data oracles, Oraichain interconnects Artificial Intelligence and Blockchain technologies. With AI as the cornerstone, the Oraichain ecosystem contains an AI marketplace, a Data & Request Hub, Publisher Service, Training Service, and Dapp Hosting.

Oraichain network provides the infrastructure and consensus mechanisms for Blockchain and AI training. These interconnected ecosystems accelerate the development of Web3, DeFi, enterprise and academia applications. yAI.finance is the first use case of Oraichain, a DeFi platform using unique AI-based features and strategies. Oraichain AI Marketplace offers AI products and APIs with the goal of becoming the one-stop-shop for Artificial Intelligence services.