Hey everyone, we are super happy to finally release this update of Tent! We are always working behind the scenes for Tent, optimizing and making everything the best we can. But today, in this latest update, we are addressing very important things for us, for the traders and for the whole ecosystem: royalties & project verification.
We are beyond excited to announce that Tent now supports royalties for multi Policy ID trades! You can now do complex multi-asset trades or bundles from your favorite projects and still support them on Tent.
Tent has always been committed to adhering to cardano-set standards since our beginnings, and while royalties have been supported since we launched our platform, they were limited and only supported for single-policy ↔️ ADA trades.
Today, many projects have evolved to be a complex network of multiple Policy IDs. With our previous system, it was simply not possible to respect and honor royalties if the trade contained more than 1 policy ID.
This means for example, that if you wanted to trade a bundle of seasonal Yummis with some $Yummi for ADA, Yummi Universe would receive no royalties. If you wanted to sell a Kong with a Magic Shroom (when they release), Kongs would receive no support. This also applies for simply mixing tokens from different projects, which is the case for many trades.
Of course, for us, this was not up to the standard, and we have been working on fixing this for a while now. We finally believe this new system is more fair and true to the spirit of the royalty token standard, allowing us to better support creators and respect their projects. From now on, every trade containing ADA will now honor the royalty token regardless of the number of policies/assets involved.
To put it simply, royalties will be calculated and averaged out based on the floor prices of the Policy IDs being traded. We have partnered up with CNFT Jungle to get up to date market data (specifically floor prices) for every verified Policy ID.
Using this floor prices, we can estimate the weight of every Policy inside the trade, to do an accurate calculation of royalties against the ADA being traded for the NFTs. Naturally, this calculation only happens if ADA is being traded.
Here is an example that allows a much better understanding:
In this example, we have to Policies, with drastically different floor prices and royalty percentages, using our new system, we can calculate a better and more accurate royalty distribution which is more fair for everyone, both the projects and the users.
Of course, this system isn’t perfect, as it doesn't account for special rare tokens that are valued way above floor price, but it does a pretty good job of giving us a baseline for a better royalty distribution for the projects involved in the trade.
If you want a rundown of how royalties are calculated, here it is. First we check every Policy floor price. Using that, we estimate the total value of the NFTs being traded and assign a weight to each Policy based on the number of assets and the floor price. This estimated value is used only to assign weight (in percentages) to the NFTs being traded, and it’s using these percentages that the royalties are calculated for the ADA counterpart of the trade.
We have joined forces with our friends from JPG Store to integrate their verification system to Tent. This means from now on, every project verified on JPG Store will automatically be verified on Tent!
So, if you want to verify your project on Tent, head over to JPG Store verification page.
Before this update, we had been manually verifying projects for Tent. But now, this will be a more seamless process for everyone, and will give traders a massive catalogue of verified projects, now also on Tent.
A big thanks and shoutout to the JPG guys for this amazing integration.
That is a big overview of this new update. If you have any questions or feedback, let us know on Twitter or Discord.
Happy trading everyone ✨