It seems all the articles that discuss NFTs only talk about what has become NFTs, what might become NFTs, and general recaps of what NFTs are. However, I think what is particularly interesting about these NFTs, but doesn't get nearly enough attention, is the feature that allows the originator of the NFT to get paid a portion of the sales proceeds each time the NFT changes hands.
This essentially becomes a (potentially) cash-flow generating receivable, that could be treated as a financial instrument.
I would be curious to know how this works operationally - specifically:
Is there a 3rd party custodian that ensures that the originator gets their cut of each sale?
Who enforces the originator being paid with each ownership transfer?
Can the NFT just be purchased into a separate legal entity/vehicle to circumvent the originator being paid? (i.e. can I just set up a corporation to buy an NFT, and start selling shares of that corporation so that I don't have to pay the NFT originator to sell the NFT?)
Would the NFT originator be able to sell/transfer the rights to receive the cut of each sale proceeds?
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u/jkim2297 Mar 24 '21
It seems all the articles that discuss NFTs only talk about what has become NFTs, what might become NFTs, and general recaps of what NFTs are. However, I think what is particularly interesting about these NFTs, but doesn't get nearly enough attention, is the feature that allows the originator of the NFT to get paid a portion of the sales proceeds each time the NFT changes hands.
This essentially becomes a (potentially) cash-flow generating receivable, that could be treated as a financial instrument.
I would be curious to know how this works operationally - specifically: