Automatic Royalty Calculations

With the growth of NFTs, managing royalties for artists has also become a significant burden. To address this, Integral has released a new feature that aims to automate and streamline the royalty payment process for NFT companies and artists.

The Challenge with Royalties

NFT companies often collaborate with artists, who are entitled to a share of the proceeds through royalties. These royalties can come in various currencies, payment schedules, and may be calculated based on different criteria such as net or gross sales. Traditionally, NFT companies have relied on spreadsheets and manual data entry to calculate and track royalties. This method is not only time-consuming but is also prone to errors.

Automating Royalty Calculations

This is where the need for automation becomes apparent. Integral’s new feature addresses these challenges head-on with automated royalty calculations. By using a rule-based system, the feature efficiently manages the various conditions for calculating royalties. Each NFT collection can have specific conditions, such as the beneficiary and fee percentage. Integral’s system also allows users to generate reports, showcasing the royalties owed for each rule created in each collection.

This integration of automation into the royalty management process not only streamlines the workflow but also substantially reduces the chance of errors.

Invoice Creation and Management

In addition to calculating royalties, Integral’s solution offers the ability to create invoices for each royalty rule during a particular time frame. Once the time period ends, the invoice will show the final amount due to the artist. This feature is designed to ensure accuracy and timeliness in the invoicing process.

Financial Reporting and Tax Compliance

Integral’s solution also offers functionality for automating financial reporting and tax compliance related to NFT royalties. This feature helps NFT companies manage their financial records and ensure compliance with regulations, particularly in relation to gains and losses from NFT transactions.

Wrapping Up

Integral’s automated NFT royalty management solution represents a substantial step forward in addressing the challenges faced by NFT companies and artists in managing royalties. By automating calculations, facilitating invoice management, and providing tools for financial reporting and integration, Integral’s solution is expected to simplify administrative tasks and ensure that artists receive their due royalties in a timely and efficient manner.

This feature is currently only available to certain Beta users. If you're interested to learn more however, you can book a demo with our team.