Each token on Royal represents:
- A percentage of the net master streaming royalties. This percentage is determined by which tier you purchase. Higher tiers yield larger royalty payouts, but it's worth noting that only some drops have multiple tiers.
- A license for non-commercial use of the digital art associated with the token.
- Any token rewards that the artist chooses to include, such as exclusive content and unreleased music. Please note that some token extras may be non transferable from the original owner.
A note on net royalties:
At Royal, artists are currently selling tokens that represent a portion of their net on-demand streaming and non-interactive streaming royalties generated by the sound recording. Net royalties refer to the earnings artists and rights holders receive from streaming services after deducting fees.
When you buy a token on Royal, you'll collect a percentage of the royalties earned by streaming services after fees such as distribution and licensing are subtracted. To help you understand the potential earnings, we forecast future streams and deduct an assumed 10% distributor fee from the annualized payout estimate. However, the difference between gross and net earnings could be higher or lower based on various factors.
The artists retain ownership of other sound recording royalty streams, such as digital downloads, synchs, and physical sales.
For more in-depth information on music streaming royalties, check out our guide to music streaming royalties here.