📈Royalty Distribution System

Automation and Timing

The royalty distribution system within the DePunks ecosystem operates as a pivotal mechanism to reward holders, incentivize ongoing participation, and fuel the growth of the project. Here's how it works:

1. Royalty Collection: Whenever a DePunks NFT is sold or transferred to a new owner on the primary or secondary marketplaces, a royalty fee is automatically triggered. This fee is set at 20%.

2. Royalty Distribution: The collected royalty fees are then distributed as follows:

   • Royalty Allocation: The majority portion of the royalty fee is allocated to the owners of the DePunks NFT. This ensures that creators are fairly compensated for their work and creativity whenever their NFTs are bought and sold on the marketplace.

   • $PUNK Token Conversion: The royalty fees collected is converted into $PUNK tokens at the prevailing market rate. This conversion process is executed automatically and transparently within the ecosystem.

3. Token Burn and Airdrop: Once the $PUNK tokens are acquired through royalty fees, 5% of them are permanently removed from circulation through a token burn mechanism. The remaining 95% of $PUNK tokens are redistributed to DePunks holders through a carefully crafted airdrop mechanism. The amount of $PUNK received in the airdrop is proportional to the number of DePunks held by each participant, incentivizing ownership and long-term engagement with the project.

Overall, the royalty distribution system serves as a fundamental component of the DePunks platform, ensuring fair compensation for creators, stimulating ecosystem growth through $PUNK token distribution, and fostering a vibrant and sustainable marketplace for digital art and creativity.