NFT Merchandise Monetization With Unified Royalty and Commission Flow
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Solution Overview
Problem
Traditional NFT marketplaces lack integration with merchandise sales, limiting creators' revenue potential and user engagement, and existing solutions often result in fragmented and complex monetization models that hinder effective earnings and interaction.
Innovation Solution
A system and method for NFT-based merchandise sales that integrates NFT and e-commerce platforms, allowing creators to earn royalties and commissions through the sale of merchandise, with a centralized server managing user devices to facilitate seamless interaction and order fulfillment.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If separate platforms are used for NFT trading and e-commerce, then NFT trading functionality is provided, but user experience becomes fragmented and monetization complexity increases
Solution Approach 1:
The patent combines NFT marketplace and e-commerce platform into a single integrated system. The server infrastructure unifies user authentication, NFT management, and merchandise sales under one platform, eliminating the need for creators to manage separate systems while providing diverse monetization channels including primary NFT sales, secondary market royalties, and associated merchandise purchases.
Solution Approach 2:
The integrated platform serves multiple functions simultaneously: it acts as an NFT minting and trading marketplace, a royalty management system, an e-commerce platform for merchandise sales, and a unified user authentication service. This multi-functionality allows creators to monetize through multiple streams within a single ecosystem.
2Productivity
If NFT and merchandise sales are integrated, then revenue potential for creators increases, but system complexity increases
Solution Approach 1:
The server acts as an intermediary that manages the complex relationships between NFTs and merchandise. It handles royalty calculations, tracks ownership, coordinates merchandise fulfillment, and manages payments automatically. This centralized mediation simplifies the user experience while enabling complex revenue-sharing arrangements between creators, manufacturers, and platform.
3Adaptability or versatility
If multiple interfaces are required for monetization, then various monetization channels are available, but ease of operation decreases
Solution Approach 1:
The patent merges multiple monetization interfaces into a single unified user interface. Creators can access NFT creation, marketplace listing, royalty settings, and merchandise store management all through one interface. Users can browse NFTs, purchase them, and buy associated merchandise without switching between different platforms or applications.
4Adaptability or versatility
If third-party manufacturers are enabled, then product variety increases, but revenue distribution complexity increases
Solution Approach 1:
The server implements an automated feedback system that tracks merchandise sales and automatically distributes revenues according to pre-configured royalty arrangements. When a merchandise item is sold, the system automatically calculates the creator's royalty portion, the manufacturer's profit, and the platform's fee, then distributes funds accordingly. This automated feedback loop eliminates manual revenue distribution while supporting multiple manufacturers and product lines.
Data Source
AI summary
The present disclosure relates to a system and a method of distributed monetization of a commodity-backed token. The system includes control circuitry configured to generate a first NFT based on the first input from the first user, associate a first merchandise corresponding to the first NFT, to the generated first NFT, display, in a user device associated with a second user, the first NFT with a detail of the associated first merchandise, receive, from the user device associated with the second user, a second input associated with a purchase of the first merchandise corresponding to the first NFT, generate and display, based on the received second input, a notification in a user device associated with a third user, wherein the notification includes details of the purchase of the first merchandise corresponding to the first NFT by the second user, and calculate a commission amount for the first user.