Revenue inflows are currently being split to different receivers depending on revenue category in the LAP royalty policy:
direct derivative revenue: is going to royalty token holders
non-direct derivative revenue: is going to IPA (nft holder) via receiving derivatives' RTs first
The simplification is meant to send both revenue categories to the same entity - the royalty token holders. It is simpler, more intuitive and concentrates value on the ERC20 tokens that are more composable in defi.
Suggested solution
To achieve this, LAP IP royalty vault will be adjusted to ensure that both revenue categories will be sent to the same entity while ensuring the basic principle of the LAP policy which is that ancestors receive a fixed % of final sales of any derivative and no more.
This means that:
derivative RTs, instead of going to IPAs, will go to ancestors' vaults
non-direct derivative revenue will not be claimable by ancestors vaults
direct derivative revenue will be claimable by ancestors vaults
Description and context
Revenue inflows are currently being split to different receivers depending on revenue category in the LAP royalty policy:
The simplification is meant to send both revenue categories to the same entity - the royalty token holders. It is simpler, more intuitive and concentrates value on the ERC20 tokens that are more composable in defi.
Suggested solution
To achieve this, LAP IP royalty vault will be adjusted to ensure that both revenue categories will be sent to the same entity while ensuring the basic principle of the LAP policy which is that ancestors receive a fixed % of final sales of any derivative and no more.
This means that: